Subnostr

If it becomes a reserve currency, governments will want to ensure no other government or group gets control of the global hashrate. It's basically part of defense spending at that point. And you have 100+ nations contributing to this. Even if mining is not profitable, this would be worth the expense.

Micah541 2y ago

This is an argument why governments will resist having it become a reserve currency. Why would you want a reserve currency that you have to have a special set of weapons and a new budget to defend?

The other thing here is that the second the government starts mining with defense budgets every basement miner is just running an expensive heater. All the mining corporations will shut down and we’ll have some form of NATO or OPEC or TPP negotiation the mining which means they’ll be able to enforce sanctions at the drop of a hat.

By this time we’re a bit afield from peer to peer electronic cash.

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Discussion

Chilidem 2y ago

You think storing gold is free?

Micah541 2y ago

Storing gold has relatively fixed and predictable costs. You don’t have to update your vault size to be one brick higher than the vault in some other country. Your threat model involves people who are physically near your vault.

Chilidem 2y ago

You don't have to be one brick higher than the bext country. One country/entiry can't have one higher brick than all the other ones combined. Not the same thing.

Micah541 2y ago

You have to spend enough to protect yourself against any coalition of adversaries who may stand against you. Your adversaries in turn need to be able to spend enough to ward off any attack that you and some of your allies threaten them with which means they have to spend more meaning well now you need to increase your budget because all of your adversaries just increased their budgets and so on und so weiter until you just sort of say gosh I don’t know this game seems kind of silly

Chilidem 2y ago

Man, that sounds like a pretty strong and important network if nation states are willing to spend so much to protect it.

Micah541 2y ago

Or if one stupid nation that nobody likes decides to go all in on it

Chilidem 2y ago

May they enjoy and protect all of their block rewards.

Chilidem 2y ago

And more importantly, do you think shipping gold is free? Actual physical settlement is way more expensive than the 2000 sats it will cost in a bitcoin transaction.