Continuing my thinking out loud on 6102 confiscation. Wouldn’t it be easier for the government to ensure bitcoin moons?  If the primary concern is to protect the dollar and the monopoly on money printing, then bitcoin as an asset is ok. It’s the peer to peer transaction feature that they would want to eliminate. 

Bitcoin moons. That should stop a lot of liquidity since who wants to spend something that is worth so much and continues to rise?  It’s why nobody uses a 1900 $20 gold coin as currency. It’s worth $2600 as gold. 

Fidelity released a paper suggesting $1 billion per bitcoin by 2048. Sounded crazy but maybe they already thought thru what we are examining today.  So fine, it’s $1 billion, or $10 per sat. Well, 1 sat would be the smallest transaction fee a miner or level two provider could accept. 

Consider my most recent lightning purchase cost 3 sats and I was thrilled at how cheap it was. But at $10 per sat, I’m not buying those three donuts using sats. And if I had to use multiple UTXOs?  That may end up costing more than the item I purchased. 

So the government can eliminate any competition to the dollar by allowing bitcoin to moon and pressuring the exchanges and ETF firms to ensure the sat remained the lowest denomination of Bitcoin.