Bitcoin *is* a store of value! Satoshi implied so. - page 2.

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Quote from: NotATether on September 05, 2022, 04:16:37 AM

By lately some people have been claiming that "Bitcoin's power consumption is a central point of failure - someone can just switch off the electricity and all miners stop". And in particular "Bitcoin will not survive the coming winter". Both of these are wrong.

I have not heard the argument of Bitcoin not surviving the coming winter. Does that refer to the actual season (weather) or the metaphor used to describe grim bear markets? I'm assuming it would be more of the former, as Bitcoin has been through multiple market cycles, but would appreciate a bit of clarity.

About someone switching off electricity and stopping mining, that's quite a ridiculous argument. For one, if there is a global electricity crisis, almost all industries would take a huge hit. And there's no someone that can switch off electricity and cut of miners.

Also, why are presumed global crisis said to be a Bitcoin problem?
People are always discussing the effect of quantum computers on the cryptography of Bitcoin, but if hypothetically it became a reality, this would be an issue for all global security outlets. Same with an electricity crisis.

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Quote from: NotATether on September 05, 2022, 04:16:37 AM

By lately some people have been claiming that "Bitcoin's power consumption is a central point of failure - someone can just switch off the electricity and all miners stop". And in particular "Bitcoin will not survive the coming winter". Both of these are wrong.

It was a tremendously bad argument in the first place. It's not like stopping all the miners is going to take a single(or a few) press of a button; it's going to require some sort of extensive global government collaboration to literally look for and stop every single miner(including miners that only run their operations at home). It's simply not realistically viable.

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To start with this "mini thesis", nullius wrote a great piece on why bitcoin is an inflation hedge.

TL;DR:

Quote from: nullius on July 29, 2022, 03:37:13 PM

Quote from: satoshi on July 06, 2010, 01:32:35 PM

Escape the arbitrary inflation risk of centrally managed currencies! ¬†Bitcoin's total circulation is limited to 21 million coins.

I am not citing Satoshi as an authority, but rather, to rebut the ridiculous misinformation that Bitcoin's anti-inflationary policy was "an idea built by influencers and speculators in the last years." That is wrong in fact. Not a matter of opinion.

By lately some people have been claiming that "Bitcoin's power consumption is a central point of failure - someone can just switch off the electricity and all miners stop". And in particular "Bitcoin will not survive the coming winter". Both of these are wrong.

Being an inflation hedge implies being a store of value, since people will keep BTC for longer periods of time in the latter case.

Miners getting their power cut depends entirely on which country their operating in, not all countries think the same. In particular, Siberian miners using Russian natural gas will not see any change or harassment of their operations (because Russia desperately needs foreign cash).

Sure, mining will be unprofitable in places like Germany, but the high electricity prices argue that miners have moved their operations to more favorable places.

The truth is, all miners will go to places with cheap electricity. Cheap electricity means the grids can sustain the miners and the rest of the population without overloading, making the much-trumpeted "economic collapse" non-existent.

Local rules: See below, same rules apply here:

Quote from: nullius on July 29, 2022, 03:38:30 PM

Local rules: I will delete anything that I dislike. But unlike in most of my thread, sigspammers are welcome to bump this so that the Satoshi quote can compete with the spam megathread with a factually incorrect ahistorical claim in OP. Muahahaha! :-)

Topic: Bitcoin *is* a store of value! Satoshi implied so. - page 2. (Read 370 times)

Topic: Bitcoin is a store of value! Satoshi implied so. - page 2. (Read 370 times)