It is known that sometime after the year 2140, the last Bitcoin will be mined and those who verify a transaction on the network will have only transaction fees as a reward for their work.
When that time comes, a report published on January 21 by the Bank for International Settlement (BIS) predicts that Bitcoin transactions will take months to complete as the number of miners will decline.
The reason for the decline will be low profitability and inability of miners to keep up with operating expenses using only what they earn from transaction fees.
The paper explicitly stated,
“Unless new technologies are deployed to speed up payment, it will take several months to complete Bitcoin transactions.”
At that point, the authors also predict that the Bitcoin Lightning Network which makes transactions faster will also not be efficient, leaving the network with no other option but to move away from the proof-of-work concept.
BIS Solution To Bitcoin Proof-of-Work Concept
If the Bitcoin network was to stop using a proof-of-work concept to verify transactions, the paper suggests that a kind of “social coordination or institutionalization” would be the way forward.
Such a move would entail that the maintenance of the network is delegated to a single centralized institution or the public using “new technologies.”
The authors, however. do not delve into details about how such Institutionalization or democratization will take place on the Bitcoin blockchain. Instead, they round up on the note that “good money is likely to remain a social construct rather than a purely technological one.”
Whether social participation will determine how the Bitcoin Network (pure technology) is managed in the future remains a debate that has been thrown open by the report.
Meanwhile, it does not place the long-term success of Bitcoin at least for the next century into doubt as the Bank for International Settlement (BIS) expects the invention to thrive.
Former Russian President and current Prime Minister, Dmitry Medvedev also shared similar thoughts when he said last week that the current bear market is not enough reason to bury cryptocurrencies.