Author: Eric Voskuil 2018-01-22 22:43:22
Published on: 2018-01-22T22:43:22+00:00
The larger network of money is more useful due to the cost of exchange between them, which can only be eliminated by one absorbing the network of the other. Thiers' law states that in the absence of currency controls, the more useful money will get used and this does not mean they will become the same value. However, Bitcoin's rising use implies rising fees, which in turn reduces usefulness (stability property). While the better money prices out certain scenarios, they remain viable in the lesser money. But eventually, the better money will absorb the lesser. The perpetual creation of new monies with exchange between them and the best money (largest network) could exist but layering proposes an approach that doesn’t require all merchants to perpetually be accepting different monies.All splits are voluntary and without enforcement liquidity will diverge, according to Erik Aronesty via bitcoin-dev. Chaofan Li suggests a simple method to solve the scalability issue of blockchain by splitting (hard fork) the blockchain into two or more blockchains (e.g. two blockchain A and B), voluntarily. The coins on one blockchain cannot be sent to the other one or interfered by the other blockchain. Everyone gets double bitcoins each having half the value of original one bitcoin. When sending coin, the wallet should select one blockchain randomly and try to send through only one blockchain (If there is enough bitcoins). This method is inspired by the stock split where when a stock share is split, for example into two shares, the price halves, but the market capitalization remains the same. With voluntary split of bitcoin, dilution of anyone's bitcoin assets won't happen.
Updated on: 2023-06-12T23:53:45.047812+00:00