The MSTR mess has exposed some important truths and lies not just about Bitcoin but Cryptocurrency more widely.(reddit.com)

It may be true that Bitcoin is LIKE digital gold, but it is different in some really important ways. Gold is chemically stable and once mined requires no input to preserve its integrity. Bitcoin is only as secure as the computational input to the network and that has to be paid for one way or the other. As I write this, the network difficulty has fallen year over year for the first time in its history. Gold doesn’t have to worry about that or quantum risk, nor is it subject to blocksize and Bip 110 arguments. So what’s the point of crypto. Satoshi declared Bitcoin as a peer to peer electronic cash system. The digital gold narrative grew from the assumption that blockchains cannot scale and remain decentralized. This again is a great lie told about crypto. EVM chains may have very limited L1 scalability but UTXO chains can scale massively to 10’s if not 100’s of thousands of transactions per second due to their scope for parallel processing. If you don’t believe just google Libbitcoin. Michael Saylor has thrown a 10bln dollar wet blanked over the BTC market by leveraging the promise that a non-yielding asset can provide a yield from just Hodling. But even Strategy’s liability is no long term risk to bitcoin. MSTR stock can be diluted almost indefinitely to pay off debt, and Bitcoin will be no more or less useful than it was before. The real risk to Bitcoin is another more useful and decentralised cryptocurrency coming along. Whether that happens or whether Bitcoin evolves enough for miners to be paid to secure the network in the long term I have no idea. But I am pretty sure one or the other will happen in time. submitted by /u/Leithm [link] [Kommentare]