Bitcoin is Dead in 2025

Bitcoin gives all the block reward to the hashers, which is a giant mistake. This mistake could have been fixed early on, but now it’s too late because nearly all Bitcoin has already been distributed to the wrong people. This means there are no incentives to ever turn Bitcoin into a useful system for any purpose. All hope is lost. Bitcoin is dead in 2025. It is better to work on alternatives.

The only thing that matters in Bitcoin is finding the next block. And the only function that matters, because blocks are limited to 1 MB, is hashing. If you are able to process a lot of transactions or send them at high bandwidth to other miners, that doesn’t matter. The only thing that matters is hashing. The entire reward goes to this function to the exclusion of all else. Transaction validation and other functions, like software development, receive no funding from Bitcoin.

Furthermore, while this could have been fixed early on, it was not. If Satoshi had changed the block reward in 2010 to go to people who were helping grow the system in other ways, then the block reward would have gone to those functions, and Bitcoin could have become useful for something like payments or tokens. However, that did not happen. All the distributed Bitcoin went to hashers, who reinvested in hashing, turning Bitcoin into a giant self-hashing system that is not useful for any other purpose. Of the 21 million total BTC, 19.8 million have been distributed to the wrong people. It is now too late to change this. The BTC has been completely wasted on the wrong things.

Since Bitcoin was launched, new systems have been launched that do not have this flaw. Ethereum and Solana, for example, have proven that different architectures are possible, distributing rewards to a different set of people. And eCash (XEC) has proven that a Bitcoin-like system can be created that does not give the entire block reward to the hashers. Because nearly all Bitcoin has been distributed to the wrong people, it is too late to fix. But it is not too late for the cryptocurrency industry. Better alternatives already exist, and there is nothing stopping someone from creating even better alternatives. Bitcoin may be dead, but the cryptocurrency industry is alive and well.

In conclusion, for Bitcoin to allocate the entire block reward to hashing was a giant mistake. It should have allocated the block reward to transaction validators, software development, and other functions. This would have incentivized a healthy and complete system. However, that did not happen. Instead, Bitcoin incentivized a giant self-hashing system, which is what was created. This system is not useful for any purpose, and because the BTC has all been distributed, it is too late to fix. But it is not too late for cryptocurrency. Bitcoin is dead, but the cryptocurrency industry is just at the start of its journey.