Re: Institutional investors are buying Bitcoin's future... How do we stop this?
This seems a hugely exaggerated claim.
I agree.
I don't know why, it seems that the human tendency is to be unhappy. We have been waiting years for a price increase like this and lately I keep seeing posts like this: that if the Bitcoin is not distributed equally, that if the companies that are buying it are going to kill it...
Now, this is where the crucial problem starts, because Bitcoin need on-chain transactions to generate income for the miners in the form of Miners fees. We know the Halving will ultimately reduce the Block reward to almost nothing and the miners fee will have to replace the Block reward as a method of payment for their processing power.
What happens if transactions on-chain are replaced with off-chain transactions in ledgers? It reduces the available supply of coins and it also does not generate income for the miners. We know miners are not going to mine for free, so the on-chain transactions will not be able to confirm and the whole experiment will fail.
What happens if transactions on-chain are replaced with off-chain transactions in ledgers? It reduces the available supply of coins and it also does not generate income for the miners. We know miners are not going to mine for free, so the on-chain transactions will not be able to confirm and the whole experiment will fail.
If companies take Bitcoin out of the circulation, they reduce the offer even more, thus driving up the price. The miners may get fewer transaction fees but they get more profits from they mined Bitcoins. Remember that there will be Bitcoins to mine until 2140, we can only guess what will happen then. Bitcoin may not even exist.
You are too conspiratorial, it seems to me.