- With halving suddenly making the act of validating blocks far less lucrative, a lot of smaller participants will drop out concentrating power in the larger miners.
- Proof of Work has been one of the defining characteristics of digital currencies, but this way of mining is arguably outdated and largely unnecessary.
- Proof of Stake requires far less computation power, which means lower hardware costs and lower electricity costs.
- The halving mechanism is more detrimental to a currency that operates solely using a Proof of Work system, like Bitcoin; primarily it increases Proof of Work’s vulnerability.
- The halving mechanism is part of the mechanics of cryptocurrencies, designed to act as an inflationary brake to stabilise the currency.
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