When concerns about Bitcoin’s future prospects in a bad direction are raised, the common response is to dismiss them. “Well tell us what to do about it then.” The term is often used to dismiss any concerns about regulation leading to regulatory grab, deeper involvement of some entities leading higher risks in the consensus, and of any kind of failure mode that includes Bitcoin’s ability to resist censorship.
“Well what’s your plan?”
Bitcoin. Bitcoin consensus is centered around two key variables: economic actors, and miners. Economic actors can decide if a particular set of rules is valuable by honoring their end of the transaction, based on their own consensus rules. Mining companies choose which consensus rules to follow, based on the value they perceive.
Through both mechanisms, users who actively use Bitcoin – that is, to transact, to operate businesses, to provide services and to use other protocols to use blockspace – gain influence. Users who value the rules and miners that will mine them are both needed to create a set of consensus. Blockspace buyers attract more miners than the subsidy they receive. Fees are a large part of the miners’ income, so users that generate these fees will have a proportional share. “power” In a sense, they have an advantage over miners. If there is a disagreement about consensus rules, the government decides which side gets to keep that revenue. This means miners have to adhere to those rules to get it.
Bitcoin will be at risk in the future if it is not used. In this type of climate, regulators can clamp down on brokers and miners. They also have a great influence over events surrounding consensus changes. The can try to block useful or valuable changes and push for useless ones.
How can we counteract this? Bitcoin can be used in more ways than simply holding or investing. You can also find out more about the following: Scalability is important. It allows for more users to interact directly with the system, and exert direct influence. As we use Bitcoin more, users will have more collective influence in future on consensus.
When Bitcoiners reduce bitcoin to a simple asset that is held, and not used, we lose the currency. The markets that bitcoin facilitates will be lost to us, and we’ll lose all influence on the rules of consensus mining.
Active Bitcoiners are more likely to succeed than passive ones. It is important to engage in transactions, to create more businesses and to consume more space. Payment networks such as Lightning and Ark, derivatives markets that are uncensorable using DLCs or even stupid things like Ordinals, Inscriptions. It is important that the demand for blockspace comes from diverse and distributed sources. Not just large companies and institutions easily susceptible to government and regulatory influence.
Bitcoin has a lot of potential. “use it or lose it” thing. Apathy is a thing I would rather avoid.
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Source: bitcoinmagazine.com
