- Bitcoin's security relies on honest miners controlling the majority of computing power.
- A 51% attack can lead to double-spending, transaction censorship, or network halting.
- Bitcoin's security budget consists of block subsidies and transaction fees.
- The block subsidy halves every four years, reducing miner revenue over time.
- Transaction fees have not sufficiently replaced the declining block subsidy.
- Low fees and limited block size hinder Bitcoin's security budget growth.
- Potential solutions include scaling on-chain, changing consensus mechanisms, or altering monetary rules.
- Experts warn of increasing vulnerability to 51% attacks if security budget issues are not addressed.