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Fidelity, the asset management giant, has pushed back against the argument that $BTC's halving mechanism gradually erodes the security of its network, contending that the protocol's fixed supply schedule does not leave it structurally vulnerable even as miners collect progressively smaller block rewards over time.
The Debate Fidelity Is Entering A line of criticism directed at Bitcoin's long-term design holds that each halving — the periodic event that cuts miner block rewards in half — chips away at the economic incentive that keeps the network's security intact.
The logic runs that miners, earning less per block, will eventually reduce their participation, weakening the hash power that defends the chain against attack.
It is a critique that has circulated among academics and rival-protocol advocates for years, and one that carries more weight each time a halving passes.
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