Post
Topic
Board Speculation
Re: Bit coin is on a down hill slope
by
kokojie
on 17/12/2014, 21:10:58 UTC

When distribution ends the network is still guarded by an algorithm, this is the only way to keep money away from politics.


No, the network is guarded by how expensive it is to attack it.

Algorithm alone does nothing, there's a ton of altcoin got attacked to death, and they uses the exact same algorithm as Bitcoin.

The past 5 years has shown, the natural equilibrium is reached with an annual PoW mining expense of 10% fiat value of Bitcoin market cap.

Therefore, investors/stakeholders of Bitcoin will pay a 10% tax in fiat value on their Bitcoin holdings, perpetually.

Now of course there are other factors affecting the price, such as new money coming in, or existing money leaving the eco-system. It's up to the investor/stakeholder to decide whether inflow of new money will offset the 10% mining tax.