Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
r0ach
on 14/06/2017, 02:43:54 UTC
In the future we will be sucking our entire sun energy to mine a tiny fraction of the already existing 21 mill of bitcoins, while a fleet of mining space ships will be dumping tons of fresh infinite precious metals in the market.  Shocked

This is basically the exact opposite of what will happen.  Nobody will ever be building Dyson spheres to mine bitcoin because anyone with the power and funds to do such a thing can just as easily fork bitcoin and build a bigger buy side and you will witness bitcoin's reverse Schelling point in action.  There is no real incentive for everyone to stay on the same chain and be enslaved by whoever managed to acquire more coins than you.  Some will claim the network effect enforces this paradigm, but it obviously doesn't apply to bitcoin.

The network effect makes assumptions like infinite scalability, which bitcoin doesn't have, and that there would be some type of actual cost or roadblock in creating a competitor, but there's not.  Network effect only works for gold and silver because a normal human is incapable of fabricating a new noble metal out of thin air.  In that case it is not really network effect, more like forced convergence.