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RE: Is Bitcoin Useless?

in #threespeak5 years ago

Unfortunately Bitcoin has no permanent store. The coin is an emergent phenomenon, it sits in the cloud and the ledger of a Nakamoto consensus system needs constant validation (even when there is no decision to be made) its not quiescent. When miners go off (its threshold dependent), the coin disappears. We were able to store value so far, simply because miners were profitable and they were profitable partly because price went up. Otherwise they can only generate income by >>ON<< CHAIN transactions. Nakamoto consensus (if you cant bend laws of physics) cant scale on chain.

Bitcoin is fixed supply because:

"because I don't know a way for software to know the real world value of things. If there was some clever way, or if we wanted to trust someone to actively manage the money supply to peg it to something, the rules could have been programmed for that." (Satoshi Nakamoto on P2P-Foundation)

smart contracts and oracles were not around...he also was optimistic about scaling, he never thought about the scaleability trilemma. Im not here to argue with 100 Trillion BTC believers (waste of time), but I hope that some people read not only the white paper but also the old stuff on which distributed consensus is based.