Banks Are Fleeing Crypto. Bitcoin Investors Should Be Worried

Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by kybernetikos on Tuesday January 10, 2023 @08:08AM (#34324260)

> I think the idea is that if big institutional holders like Coinbase subsidize mining at a loss, the for-profit miners become less necessary.

I suppose it's one possible future, but I'd be shocked to hear a bitcoiner say it, since it would effectively turn a decentralised chain into a chain run by a consortium of large financial companies.

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Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by paulgb on Tuesday January 10, 2023 @08:23AM (#34324449)

I agree, but the other path I've heard proposed is for miners to force a hard fork to lift supply cap and keep subsidizing the network with inflation. I think that's even less true to bitcoin's original ethos.

(I also think it overestimates the power that miners have to unilaterally hard fork and have the community accept it, but so goes)

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Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by kybernetikos on Tuesday January 10, 2023 @08:31AM (#34324554)

You're probably right on both counts. Having said that, if the analysis is correct, then it means that users will eventually drive the chain to a place where it's experiencing regular attack. At that point they'll probably not stay around and will look for other options.

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Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by paulgb on Tuesday January 10, 2023 @09:02AM (#34324923)

Yes, that's essentially the conclusion I've come to as well.

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