Ram çolo on Nostr: The problem of bitcoin and its “deflation” continues… Everyone has heard that ...
The problem of bitcoin and its “deflation” continues…
Everyone has heard that bitcoin is a “digital currency”; however, we must be aware that everything that is digital only exists because there is physical hardware working somewhere. In the case of bitcoin, these are “ASICS” and “nodes”; I will not describe them, because I honestly do not fully understand them. However, today it is necessary to invest a lot to maintain an ASICS.
And here a potential problem arises; in about 150 years, bitcoin mining using ASICS will end. You can imagine that miners could convert them into nodes, but a node is a tool (as far as I understand) that becomes profitable as transactions are carried out on the network. And here the constant appreciation of bitcoin can be a problem.
An asset that always tends to appreciate will not be used as legal tender; this implies that the number of transactions on the network will be extremely low. So we will have a perfect storm; the end of mining, the low number of transactions on the network and the constant appreciation of bitcoin (which discourages its use as legal tender).
This will at least make the network extremely slow; or even lead to its collapse. And here something unimaginable may happen! Metacapitalist groups such as Blackrock, which as far as we know has invested millions in bitcoin, and even states will start putting hardware in place to operate and maintain the stability of the network.
However, this will result in the hijacking of bitcoin; a tool that emerged as a mechanism to free individuals from the power of the state and metacorporations may end up being dominated by these entities.
#biticoin #state #metacapitalism
Everyone has heard that bitcoin is a “digital currency”; however, we must be aware that everything that is digital only exists because there is physical hardware working somewhere. In the case of bitcoin, these are “ASICS” and “nodes”; I will not describe them, because I honestly do not fully understand them. However, today it is necessary to invest a lot to maintain an ASICS.
And here a potential problem arises; in about 150 years, bitcoin mining using ASICS will end. You can imagine that miners could convert them into nodes, but a node is a tool (as far as I understand) that becomes profitable as transactions are carried out on the network. And here the constant appreciation of bitcoin can be a problem.
An asset that always tends to appreciate will not be used as legal tender; this implies that the number of transactions on the network will be extremely low. So we will have a perfect storm; the end of mining, the low number of transactions on the network and the constant appreciation of bitcoin (which discourages its use as legal tender).
This will at least make the network extremely slow; or even lead to its collapse. And here something unimaginable may happen! Metacapitalist groups such as Blackrock, which as far as we know has invested millions in bitcoin, and even states will start putting hardware in place to operate and maintain the stability of the network.
However, this will result in the hijacking of bitcoin; a tool that emerged as a mechanism to free individuals from the power of the state and metacorporations may end up being dominated by these entities.
#biticoin #state #metacapitalism