Fidelity Defends Bitcoin's Long-Term Security Model

Fidelity Digital Assets has pushed back against concerns that Bitcoin’s long-term security will deteriorate as mining rewards decline, arguing in a new research report that the network’s economic incentives remain sufficient to secure the blockchain over time. The report, authored by Fidelity research analyst Daniel Gray, says security depends on more than block rewards: transaction fees, market incentives and other economic forces continue to encourage miners to secure the network and make sustained attacks prohibitively expensive.

The paper challenges the view that quadrennial halvings inherently weaken Bitcoin’s security as issuance falls. Since April 20, 2024, miners have received a subsidy of 3.125 BTC per block, down from 6.25 BTC in the previous cycle, but Gray argued that rising Bitcoin prices have more than offset the decline and pointed to average daily miner revenue rising from roughly $26,300 during Bitcoin’s first halving cycle to more than $40.2 million today.

fidelity, bitcoin, security model, mining rewards, halvings, block subsidy, transaction fees, miners, daniel gray, miner revenue