It's a bit rich to claim that the price is determined entirely by subjective valuation when there is a built-in price control mechanism that works by adjusting production cost.
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Replying to @Frances_Coppola @Excellion
Will 🗣️ 🌐 Retweeted Will 🗣️ 🌐
Agree. That built in mechanism you reference is father to the strange loops pervasive in this model.https://twitter.com/FluidFluxation/status/996310464945672192?s=19 …
Will 🗣️ 🌐 added,
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Replying to @FluidFluxation @Excellion
If Bitcoin really does trade like a commodity as Satoshi said, the price adjustment mechanism can't be sustainable long-term unless users are prepared to pay miners what amounts to a subsidy to keep them producing. Farm-gate price support in the crypto world. Who'd have thought.
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Replying to @Frances_Coppola @Excellion
Token emission is a protocol to facilitate more ideal bootstrapping incentives to be organically hyper-competitive game/information theoretically. Since day 0 the network has been built to incentivize fee markets. See image 2. Source: Original Whitepaper.pic.twitter.com/BNpRuVGSqM
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The idea that bitcoin users rent hashpower from miners is a collective delusion. Miners are the PoW Miners are the backbone of bitcoin, and the battery powering the metronome(protocols) the user symphony syncs upon.
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Replying to @FluidFluxation @Excellion
I know that. Pointed it out yesterday. Without miners, Bitcoin is dead. That's why the difficulty adjustment is essential - it's effectively a subsidy to miners to keep them mining. But it's not sustainable imho.
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Replying to @Frances_Coppola @Excellion
I can see that frame of reference re: DA a subsidy. Again reference the importance of bootstrapping in an immaculate conception paradigm. Regardless, if we agree on fee markets, how is this DA unsustainable, if its effect effectively neglifies over time?
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Replying to @FluidFluxation @Excellion
Bootstrapping is a one-off event. It is not required for all time. Indeed the 21m limit means it cannot continue for all time. Eventually, all that remains is a fee market, and at that point transaction costs must rise enough to keep miners honest.
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Replying to @Frances_Coppola @Excellion
Agree. Tho, fee market economics are in play before 21m emission. New trends/loops forming now. See mempool and fee market & volatility last 10 months. The bootstrapping will continue but fade, & organic market forces will continue to build atop the entropically favorable path
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Replying to @FluidFluxation @Excellion
Oh, I completely agree. Imho the fee market dynamics are already problematic.
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The community is confused and problematic. The fee market is just a mirror/abstract. Its protocoligorically accurate and attuned.
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Replying to @FluidFluxation @Excellion
hah, that's true. Bitcoin's dynamics reflect its community.
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