Steve Haines When the miners(people who keep their computers on) in the bitcoin network grow…

Steve Haines When the miners(people who keep their computers on) in the bitcoin network grow, mining becomes faster. The rate at which bitcoins are generated increases. If this continues , bitcoins will be issued in abundance and its value will decline. On the contrary if miners are less, mining becomes difficult. This can cause miners to abandon bitcoin due to lack of motivation.

Bitcoin has an internal feedback mechanism to prevent this crisis. After every two weeks the system checks if the time for mining a block is less or more than ten minutes. If it’s less than ten minutes, the system makes mining more difficulty. It increases the complexity of mathematical problems. This will slow down the rate at which bitcoin is generated. If it is more than ten minutes, the system makes mining easy. Motivating more people to mine.

Since there are a lot of miners now, mining difficulty has increased. This needs a lot of computer resources to solve problems. Hence the energy issue. They can opt out of this mechanism and implement a different one that doesn’t require substantial energy. They are likely to move out of it. Bitcoin is a truly democratic system. The majority of the community just have to agree to move out of it.