2minutebitcoin on Nostr: What's the best way Bitcoin might fail? This is a discussion we are having at stacker ...

What's the best way Bitcoin might fail?

This is a discussion we are having at stacker news. See my reply:



Stall, Suppression and 'Fake' Competition to Oblivion

We believe the only realistic way for Bitcoin to fail is to fizzle out into irrelevancy.

A sufficiently determined state actor could do a combination of:

Capture and then favor certain cryptocurrencies through regulation. Said shitcoins' game theory would dictate them to market themselves as a Bitcoin competitor / superior (e.g Ethereum)
Heavily manipulate Bitcoin's price through over-financialization (naked shorts, futures ETF, controlling major financial behemoth's (e.g BlackRock) stance , etc)
Attack Bitcoin either directly through regulations or indirectly through uncertainty in regulation
Spread FUD in every state-media on every opportunity
Cause another episode in-fighting in the community in order to weaken it (e.g security budget, drivechain, whatever you can think of). Can be further done through capturing some of the people with a larger following.

The combination of which risk forcing Bitcoin to stagnate and stumble in a very trepidatiously way. This risks it losing its first spot in the cryptocurrency ranking (BS anyway as it doesn't compare to them), perhaps even top 5 or 10 depending on how much the alternatives are pumped. (you bet game theory will force them to go all out as they smell blood)

As that happens, a negative network effect begins to form. Since Bitcoin's value is based on belief, the shakeup of belief can negatively affect price which can further negatively affect belief - and the vicious cycle makes it end in a much worse place than today, effectively neutralized. At this bottom point, it would be an insurmountable task for Bitcoin to rise up and muster the same amount of support again. Like the gold bug crowd.




(posted at https://stacker.news/items/127537)