A former engineer with experience at major technology companies drew the market's attention again by revealing his exit from Bitcoin amid structural concerns about the network. Known for his technical work and established presence on YouTube, he said in a recent video: “I sold all my Bitcoin and suffered absolutely enormous financial losses”.
The central warning revolves around the network's economic sustainability. According to him, miners — responsible for validating transactions — depend on two sources of revenue: the block subsidy and the fees paid by users. Currently, the subsidy is at 3,125 BTC and will be reduced again in the next halving of 2028.
With about 95% of Bitcoin already issued, the engineer argues that the fee model has still not offset the gradual reduction in rewards. “As fees decrease, miners turn off their equipment, security falls, the network weakens again… and a slow death spiral may set in. Bitcoin is finished.”
Recent data reinforces the pressure on the mining sector. Hashprice, an indicator of revenue per computing power, remains close to US$ 29 per petahash per second, after a relevant drop at the end of June. At the same time, the network difficulty rose more than 7%, further compressing miners' margins.
Another point raised involves the evolution of quantum computing. In theory, advanced machines could use Shor's algorithm to break cryptographic keys, exposing older wallets. Estimates for this scenario vary, with projections between 2030 and 2035.
Despite the concerns, part of the technical community believes there is still time to adapt. Proposals such as BIP-361 suggest gradual changes to make the network resistant to quantum attacks, including the migration of vulnerable addresses. Developers are also working on alternatives compatible with the current structure of the protocol.
The decision to sell, however, was also related to financial strategies. The engineer himself admitted: “I used excessive leverage. A small mistake led to dramatic consequences”. The drop in Bitcoin's price, which fell about 50% since the peak of 2025, accelerated automatic liquidations of leveraged positions.
Even after the exit, he says he continues to closely follow the sector, maintaining a positive long-term view on cryptocurrencies.
