RE: BTC - Consolidation Time

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RE: BTC - Consolidation Time

jrcornel in #bitcoin • 6 years ago

You know, people have been right about bitcoin not having the best tech for the last 8 years or so... but guess what? It hasn't seemed to matter. People buying bitcoin seem to be buying it more as a store of value, non-correlated asset that offers asymmetrical returns. It is the most decentralized and most secure of any network out there. Bitcoin may never work as a means of every day payments, but I don't think people are buying it for that. Gold is worth $8 trillion currently and no one buys anything with it. The fact that bitcoin doesn't change/adapt much can be seen as a feature more than a bug. People don't want the rules changing on them all the time if they are investing. Which might be part of the problem with steem... we change the rules of the game every couple of months it seems.

6 years ago in #bitcoin by jrcornel

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edicted 6 years ago

I watched an Andreas Antonopoulos video recently that explained exactly why it doesn't really matter if slightly more efficient projects emerge. He compared it to introducing rabbits to Australia. Now there are rabbits everywhere; they found the niche in the environment and their population exploded out of control... you can't uproot them by introducing a slightly more efficient animal; they're already entrenched into the environment. Bitcoin is also entrenched. It was never supposed to be the best solution or even a good solution. It's "good enough". That's all you need with first-to-market advantage.

Also all these other coins that come out aren't superior to Bitcoin in the least bit. There are trade-offs, and these other coins are sacrificing some other vital attribute in order to achieve higher scaling, throughput, and efficiency.

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jrcornel 6 years ago (edited)

Very true. I guess saying they are superior is just a quick way of talking about the trade-offs. Superior perhaps in the way that some people think when they talk about a useful currency. Which is something I have talked about many times, I don't think bitcoin will really ever be. One that can be used as a currency, sure, one that is widely used as a currency, probably not. More like a settlement layer that where value can be moved rather easily.

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edicted 6 years ago

I think people's need for Bitcoin to be a currency is misplaced. Just because we call it cryptocurrency because developers aren't very creative doesn't mean we need to force that ideology onto the network. The same can be said for all the perceived competition that doesn't exist in this co-op. Bitcoin can do its thing and something else can be a better currency... and that's fine. I feel like there's a lot of unnecessary bickering to the contrary when it comes to projecting competition onto the open-source sphere.

Another issue is the one of cornering the mining market. Bitcoin takes the lion's share when it comes to network security using POW. I think a lot of people mistakenly ignore this fact when it comes to considering other POW coins. Security matters a lot more than people give it credit. One of the nice things about POS and DPOS is that the security of one project has no effect on the others.

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