Natural attack that should be expected because of human action. Imagine a scenario where Bitcoin goes to millions (versus US piece of paper) and US (by acquiring it) lowers its debt substantially - creating a longer period of sideways action, sellers, and further centralization on exchanges because of people using the fiat derivative verus Bitcoin. Imminent default risk would also go away for USD which would also create complacency by making it not seem urgent anymore. That, along with a well orchestrated attack on layer 1 that included the perceived risk of a price (in usd) correction by holders would likely convince many to side with large holders (who would be influenced by Gov)

Against this scenario is growing number of people deep down the rabbit hole, the global adoption of Bitcoin in self custody, more node operators who watch for risks like this, the use of bitcoin as a medium of exchange……setting up a likely (at some point) hard fork and a repeat of the blocksize wars where those trying to cheat the protocol by using their influence or power get wiped out by people protecting its security and decentralization.

Hope that helps.

Reply to this note

Please Login to reply.

Discussion

My fear at least in the U.S., is that not enough people deeply feel the economic pain. They won’t wonder what is wrong with the money otherwise.

There is a lot of finger pointing and distraction, plus distortion of the narrative away from causations.

This is why I am actively Orange-pilling anyone I can.

We NEED people to see and use Bitcoin. Believing is seeing for most of us now, but for many, seeing is believing. And as you’ve said Jeff, “Once you see it, you can’t unsee it.”

The U.S. deeps won’t take away their cash cow of capital gains from Bitcoin happen anytime soon, but imagine the world if Bitcoin was treated as a currency and not taxed.

Dreaming….