BTC Reddit Mentions | ChartExchange

1) Bitcoin is money and Money tends to have very strong network effects where liquidity , user and merchant adoption and branding are extremely important
The same reason the US dollar has remained the global reserve currency even with most countries in europe teaming up together to create the euro is the same reason altcoins are unlikely to unseat Bitcoin's dominance as the trusted blockchain .
This is a double edged sword because it also means fiat currency is likely hear to stay alongside bitcoin for our lifetime at minimum. In time Bitcoin has a chance to unseat the dollar in dominance but its unlikely to happen for at least 40 years due to these network effects
2) Proof of work converges on a dominant chain where multiple PoW chains redoing their own work becomes inefficient and wasteful. Bitcoin already has orders of magnitude more miners and security as any other altcoin with billions of dollars of ASIC infrastructure that does not need to be replaced in a hypothetical future with Quantum computers due to Grover’s algorithm. (we only need to change the signatures with an upgrade and not the hardware and we are already working on that)
3) Everything has tradeoffs and most differences altcoins are have are gimmicks , or features bitcoin threw away because it has poor tradeoffs. Bitcoin is an evolving open source project and can adopt anything worthwhile if need be. Over the years more than 90% of Satoshi's code has changed because Bitcoin is always improving.
4) Bitcoin is used more as p2p money than other alts by wide margins and has much better branding and adoption.
---------------------
Proof of work is the most important innovation in Bitcoin and the real reason why blocks , in a blockchain, exist.
The key aspects as to why Proof of work is so important and cannot be replaced by PoS are:
1) **Fair Coin Distribution** No scammy ICO , premine or instamine is created and miners are forced to sell most of their coins to cover the expense (mainly ASICs + electricity) which allows a fair distribution and competition in the minting process.
2) **long term incentives** With coins that have premines/instamines/ICOs the incentives are such that the creators benefit from pumping and dumping and creating more altcoins/ICOs to "fundraise" more rather than miners who have sunk infrastructure costs on mining a particular algo(The more we approach Moore's cliff the longer these time preferences become as we have been seeing)
3) **Decentralization of Minting** Since mining BTC is so competitive, profit margins are typically thin and thus new entrants that either use a better tool to mine (ASIC) or find cheaper sources of power(typically green due to the economics) can quickly gain market share making lasting monopolies difficult. Even if a main ASIC manufacturer appears to have a large market share we can see this quickly change due to a single malinvestment or a mistake when developing the newest ASIC. Power is a resource that comes from many sources and allows many locations around the world to remain competitive for unique reasons.
4) **Sybil resistant** Proof of work allows miners to order transactions where there are real tangible costs to transaction selection and fake nodes cannot simply flood the ecosystem in order to attack the network
5) **Game Theory** The game theory of Bitcoin is such that it is more profitable to mine bitcoin and secure the network than attack it because any attempt at a 51% attack or reorg the chain would quickly be caught once the attack was executed and the loss in resources would be profound.
6) **Objective Security** - Proof of work gives us an objective and measurable degree of security where risk assessments can be made with greater precision that isn't afforded with more subjective forms of security.
6) **Less Regulatory Scrutiny** - One critical aspect to how securities are defined and regulated by governments(for the USA research into "Howey Test" but other countries have similar regulations) deals with who controls the money/investment and a common enterprise profiting from it. Because Proof of work allows anyone to become a bank that mints and secures the network that no-one can control courts have already determined that Bitcoin cannot be considered a "security" and thus would not fall under those regulations like other coins/ICOs that lack Proof of Work. PoW alone is not the only determining factor on defining what is and isn't a security but an important one.
7) **Incentives to resist centralization** The game theory and incentives of Proof of stake all lead to centralization because there is no external need to compete for energy and efficiencies. The creators or large whales who buy into the coin will all form a controlling oligopoly who can simply collect taxes (fees) for no effort and censor with no effort unlike with proof of work

.dark-mode .KT9s6x{ color: white; background-color: #333333; border: 2px solid white; }.light-mode .KT9s6x{ color: #333333; background-color: white; border: 2px solid #333333; }BTCUSDT20240125C36000Bitcoin / Tether USD Jan 25 2024 36000.00 Callcrypto

BTCUSDT20240125C36000
Bitcoin / Tether USD Jan 25 2024 36000.00 Call
crypto