yeah nostr:npub1m5s9w4t03znyetxswhgq0ud7fq8ef8y3l4kscn2e8wkvmv42hh3qujgjl3 has been telling me about that.
essentially the design choices Bitcoin has made incentivizes hodling.
but hodlers don't pay for network security.
its kinda a big problem.
and since bad money chases out good money,
its easy to see a scenario where large, powerful players use violence to monopolize the network,
and issue a shitcoin (Backed By Bitcoin ™) for people to actually use for txs,
while they hoard the actual capital.
And nobody actually wants to SPEND their BTC anyway so there's not a lot of incentive to resist.
but like you say
its uncharted territory.
¯\_(ツ)_/¯
The paradox is if they do the forced shitcoin scenario plus hoarding (which you can obviously see happening already) then they actually hurt the value of their stash long term. Like falling on their own sword. But they don’t see that - yet.
Yes there’s a limited incentive to spend vs hodling, but nostr:npub150q6tnk63wrt0jmy6ht27k8u0pa6gq8jjy4eq7tf6f6507t9ghgqnnen2h made a decent response to that already. I would add / argue there’s also an incentive to be paid in BTC which “pulls” spending.
If they succeed on getting a controlling share of the network
and they have a captured market of users
i don't think its true that doing a fractional shitcoin off of Bitcoin hurts the value of their stash.
i guess it depends a lot on the details
and its all pretty theoretical
Anyone getting a controlling share of the network sends it towards zero… the next step of that scenario comes with a fork and a huge sell off of the controlled asset. Mutually assured destruction.
Fractional shitcoins kill transaction demand so reducing the value of the assets they control long term, which includes both utxos and miners.
Where I see Bitcoin as beautiful is it has all these paradoxes where total control ultimately hurts the one who would invest in that goal. It forces coordination and distribution in so many ways.
I dont think the new VC capital and cantillionaire investors that have drivin the price up this cycle know or care one little bit about decentralization.
if a powerful enough entity guarantees Blackrocks investment, they aren't going anywhere.
You’re absolutely right they don’t.
They’ll be forced to realize the reality of the protocol design eventually though.
