Author: Venzen Khaosan 2015-10-07 10:13:15
Published on: 2015-10-07T10:13:15+00:00
The email thread between Dr. Adam Back and Micha Bailey on bitcoin-dev discusses the extension blocks proposal and its potential for soft-fork increase in the total number of bitcoins in circulation. Dr. Adam Back explains that extension blocks or sidechains cannot allow a soft-fork increase in the total number of bitcoins, as the main chain still enforces the 21 million coin cap. Although a given extension block could go fractional, if there was a run to get out, the last users out will lose. It is transparent, so they will know they are fractional. Relatedly, it appears possible to implement a sidechain with advertised demurrage, with an exit or entrance fee to discourage holding outside of the chain to avoid demurrage.In the coming fee market crunch, any speculator would trade an extended block in the implied direction and also hedge in the opposite direction in case it gets rejected. The speculative public will most likely trade in the same direction, initially, but arbitrage and futures markets perspectives will go the opposite way and create a new chart pattern that will precede contrarian price motion. In the end, as the community illusion of non-interdependce fades, we'd expect bitcoin price to tend to its natural condition: parity with the most powerful fiat currency out there: the psychological King, the US dollar.After decades, an inverse correlation can develop as the majority world moves from paper to digital - barring a critical survival event such as a solar EMP, which is due. Venzen Khaosan concludes by stating that buying coffee with XT bitcoins is small-minded behavior in the current deflationary environment, and Mike Hearn is an economic imbecile and should be knocked out of the Bitcoin space forever.
Updated on: 2023-06-10T23:59:10.326106+00:00