Crypto

Whales Shut Down the BTC Network in the Year 2100 – Featured Bitcoin News


On September 21, former Bitcoin developer Gavin Andresen revealed an attention-grabbing weblog publish about “a possible [Bitcoin] future.” The weblog publish particulars a theoretical scenario for the Bitcoin community in 2061, the place most [bitcoin] transactions don’t occur on the [Bitcoin] community.

A Theoretical Look at $6 Million Dollars per Bitcoin and the Year 2061

Following Satoshi Nakamoto’s departure from Bitcoin in 2010, for a couple of years, Gavin Andresen was thought-about the software program’s lead maintainer after Nakamoto left him the keys. In 2011, Bitcoin developer Mike Hearn additionally claims he received an email from Satoshi which mentioned that the blockchain inventor “moved on to other things” but additionally added, “It’s in good hands with Gavin and everyone.” However, Andresen will not be the lead maintainer anymore, and has not been an lively Bitcoin Core developer in years.

In the previous, Bitcoin.com News covered Andresen’s opinion regarding Ethereum’s Tornado mixing protocol and pockets privateness in common. Andresen additionally discussed the Bitcoin Cash (BCH) community in January 2018 in a proposal he wrote referred to as “Storing the UTXO as a bit-vector.” In more moderen instances, after the Tornado mixing weblog publish, Andresen shared his opinion in a weblog publish referred to as: “It’s not about the tech (yet?)” Then, on September 21, 2021, Andresen as soon as once more has one thing to say about the Bitcoin (BTC) community.

The former Bitcoin Core developer mentioned that folks ought to “take this as a little piece of science fiction,” nonetheless, he additional added, “of all the possible futures I think this has as good a chance of any of happening.”

“Imagine: it is the year 2061,” Andresen writes in his newest blog post. “The BTC price is six million US dollars– equal to about a million 2021 dollars because of inflation. Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction). But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multisignature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens,” Andresen provides. The weblog publish additional stresses:

People moved their BTC both as a result of they need quicker transactions, decrease charges, extra privateness, or wish to make investments their BTC in decentralized monetary stuff. Or perhaps all of the above. The transactions that do happen on the principal BTC community are high-value, largely between super-whale-size holders (centralized exchanges, central banks, and the decentralized multiparty computation addresses that maintain all the wrapped cash).

Andresen: ‘The Possibility of Zero Bitcoin Circulating on the Bitcoin Network’

Andresen’s concept may very nicely occur and there presently is plenty of wrapped or artificial bitcoin (BTC) getting used on different blockchains. Dune Analytics reveals the variety of BTC leveraged by way of Ethereum is 269,642 BTC throughout seven completely different initiatives. The Wrapped Bitcoin (WBTC) mission instructions an combination complete of 205,921 of these cash at the time of writing. Andresen continues his theoretical publish by saying the tremendous whales seize the community perpetually.

“These whales maintain the BTC network forever,” Andresen writes. “They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay. In the year 2100, the whales notice that the mining reward is basically zero, and there are fewer and fewer transactions happening on the slow, expensive, zero-privacy BTC network. So they decide to simplify and save money by shutting it down,” the former Bitcoin developer provides. Andresen’s weblog publish goes on:

One by one, they shutdown the ‘bridges’ that transfer BTC between chains. Then they burn any BTC locked on the BTC chain by sending it to the 0x000… tackle, to verify no one can ever spend it on the BTC community. Eventually, there are zero new BTC being produced on the BTC community, and nil BTC circulating on the BTC community. There is nothing left to safe, and the chain stops.

Are Sidechains Competitors or Will They Help Bitcoin Scale?

Andresen concludes that roughly “20-or-so million BTC” will flow into on different blockchain networks. “Valuable because there are a limited number of them and because BTC was the first scarce digital asset,” Andresen deduces at the finish of his weblog publish. Interestingly, the subject is being mentioned in current instances, however not essentially stemming from Andresen’s weblog publish.

For occasion, on September 24, the bitcoin pundit John Carvalho, in any other case generally known as “bitcoinerrorlog,” said: “Good morning, sidechains compete with Bitcoin, not scale it. (They also don’t actually exist.)” Carvalho adopted up his tweet with the following opinions:

  • The authentic concept and design of a two-way peg was by no means achieved
  • They needs to be referred to as anchorchains or one thing
  • They are like shitcoins that compete for transactions as an alternative of as cash.
  • They don’t scale back sh**coin utilization
  • They should not ‘on’ Bitcoin

Although, not everybody agreed with Carvalho’s opinion about sidechains. The bitcoin (BTC) proponent John Light shared his opinion about Carvalho’s statements:

“Good morning, sidechains that use BTC as the native asset and pay bitcoin miners for security don’t compete with bitcoin,” Light tweeted in response. “Even if sidechains that use BTC as the native asset didn’t pay bitcoin miners for security, they would be no less competing with bitcoin than, say, Lightning which siphons fees away from miners to LN routing nodes,” Light added in his Twitter thread. Light additionally shared a paper referred to as “Scaling bitcoin with sidechains” and concluded:

Sidechains additionally assist scale bitcoin.

What do you consider Gavin Andresen’s current theoretical weblog publish about the Bitcoin community in the future? What do you consider the dialog between the bitcoin proponents John Carvalho and John Light? Let us know what you consider this topic in the feedback part under.

Tags in this story
Bitcoin, Bitcoin (BTC), Bitcoin network, Bitcoin on Ethereum, Blog Post, BTC on ETH, Competitors, Cross-chain, debate, discussion, Dune Analytics, Gavin Andresen, Help BTC scale, John Carvalho, John Light, Mike Hearn, Multi-Chain, Satoshi Nakamoto, sidechains, Theoretical, Whales, Whales Shut Down, Year 2066, Year 2100

Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter,

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