It's basic incentives. If Bitcoin is expensive on the base layer, users need banks to hold it for them. This allows all the shady practices of traditional banking to continue. Bank runs are difficult because the network becomes congested and fees climb prohibitively high. Anyone who holds a lot of Bitcoin can become a bank and profit off others. Whether it's Saylor or Swan, BlackRock or Coinbase, this is their incentive.
But Bitcoin is controlled by proof of work, not proof of stake.
Miners are incentivised to maximise on chain transactions, fees x volume. If the fees prevent transactions they would rather scale the base layer.
Users are incentivised to control their own keys to prevent losing funds and having the value of their Bitcoin diluted by fractional reserve banking. They also want the lowest cost nodes, so would rather scale through permissionless scaling solutions.
The block size wars were users vs miners, users prevailed with the UASF for taproot which enabled lightning for scaling, rather than large blocks. There are limits to lightning which is becoming clear.
The next will probably be users vs bankers.
In Bitcoin, be ready to burn your heroes.
I thought I was the only one who saw the banking endgame people like Saylor are probably playing.
No corporation buys that much Bitcoin to simply sit on it, forever.
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How will you protect Bitcoin from Jews?
How will you protect Bitcoin from socialists?
I can't believe I was dumb enough to lift the mute and waste 3 seconds of my time reading that.
I will never get those seconds back.
Saylor buys up massive amounts of Bitcoin for Microstrategies and drives up the price for other buyers, and it's like... but why?
Is he now the JP Morgan of Bitcoin? Can he wipe everyone out by crashing the price?
This is why I stopped cheering him on, a couple months after he entered the scene.
Well traditional banking wasn't that bad.
I mean, you NEED a place to store your gold.
You NEED someone with money/gold if you want to take a loan.
In a non-fiat world you can't just print money.
Traditional private banks like (please don't laugh) they where in the "wild West" are absolutely legit in my point of view.
If Saylor is the only one doing it, you can't blame him for that.
Isn't that what we want - the end of central banking? The end of bailouts?
Had a discussion today with other plebs about people really WANTING someone to secure / take custody of their BTC.
We already have a system of private banks that are interested in doing that, to counter the CBDC move by the Fed. Like the German Raiffeisen, which is a savings and loan type of organisation.
Those would be lots of smaller banks, tho, and not five new central banks. It's the concentration, that is detrimental.
So they should buy more BTC 🤷♂️ and not Michael sailor should buy less
He is free to buy all of the Bitcoin he wants and I am free to find it sus.
I get your point but game theory says he's doing the right thing.
I mean, if he believes in BTC, why should he NOT buy as much as he can get his hands on 😂
Because heavy concentration undermines trust in the money and reduces its value proposition.
What Devs are building to enable zaps from wallets that are too small to be economical on the base layer, is applicable to the future of Bitcoin. These micro transactions are the marginal case for Bitcoin that will continue to grow as Bitcoin adoption continues. Minimising trust and maximising access and privacy is essential. Proof of reserves, open source code, no KYC etc.
These are all compromises from securing your own keys. We need to make sure that as the base layer becomes congested that controlling your own Bitcoin in a permissionless way continues to be the highest priority.
It's an obvious play, but people who are payed to speak tend to be more vocal. Take note of influencers who are defending and calling out behaviour that undermines Bitcoin.
I wish there was a way to flag accounts on nostr so you could privately (or publically) make notes about accounts for future reference.
There is, on #Freerse. But they don't have a final release out, yet.
Yeah, I am actually distrustful of fanatics that think it isn't possible to undermine Bitcoin because Bitcoin is permanent and perfect.
It is a software project. You can always fuck up a software project.
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