humorous column zk

Where does the maximum amount of Bitcoin go from here?

You may have seen some unhealthy dramas sweeping Bitcoin lately.”social communication‘particularly about who is – and who is certainly not – the ‘extremist’.

Bitcoin cap, in the broadest possible definition, is a person who is heavily invested in Bitcoin who believes that Bitcoin is the only important cryptocurrency and that all other cryptocurrencies, if not scams, are distracting from this worthy and destructive venture.

The purpose of this project remains a subject of intense debate within the radical world: there are critical theorists who believe that Bitcoin is normal.”hardness“It secures its future status as a global reserve currency; others believe it should only act as a buffer against government interference in the money supply; others view the cypherpunk model of censorship resistance as a fatal use case and undervalue other cryptocurrencies primarily because they rely on a poor security architecture.”

It’s that first group, hard money theorists – known as “toxic” for their tendency to be aggressive on Twitter toward anyone who doesn’t share their views – who are currently in crisis.

Recently, they were discussing a perceived former ally, VC and article writer Nick Carter, having been revealed on twitter That his fund, Castle Island Ventures, has invested in a company that is developing a wallet-based login functionality unrelated to bitcoin. Extremists resented the apparent betrayal of a prominent supporter. Carter is back with a Medium post He praises extremism as a “disease,” then is seen jokingly fraternizing with “not working.” It was all very childish and awkward.

But it wasn’t the first time a prominent bitcoiner – Carter’s – had dealt with a prominent bitcoiner Certainly Still – he actively sought to break away from the movement whose obsession with purity constantly costs her the support of influential people who would otherwise be natural allies.

The group forever alienates fellow would-be travelers: the tweeters Audi Wertheimer And the haso He fled in disgust not long ago, and former Bitcoiner Champion Nassim Taleb has gone further. He retracts bitterly his introduction from the radical foundational economic text.

Others softened their speech. Alex Adelman, CEO of Bitcoin-only rewards app Lolli, now calls He himself is a “Bitcoin optimist” and praises the NFT culture at NFT NYC, and former enthusiast Dan Heald says he “Bitcoin Mostmalist. ”

Not to mention the string of Bitcoin pioneers who have long continued to take a multi-denominational approach to cryptocurrency, such as Erik Voorhees, Roger Ver, and Jesse Powell. Then there are the pragmatists, such as Carter and Anthony Pompliano, who see Alpha instigating the fanatical Bitcoin vanguard – until it turns against them.

There is also a distinct sense that the hard money maximization project is killing itself, and that there is a rot among its core followers. It is remarkable that many in the same core group, unable to resist an attractive market opportunity, adopted projects that would one day scandalize the virtues.

For example, Eric Wall, another former extremist, told me he left the movement when influential voices became “increasingly hostile” to his interest in Bitcoin layer 2 chains called “drivechains,” a way to explore “altcoin functions” such as smart contracts and decentralized exchanges via Bitcoin. Drivechain’s plans were eventually discontinued due to recurring technical reasons, and Wall looked elsewhere.

“This is how I arose out of extremism,” he said. It was “a realization that the Bitcoin base layer will not support these interesting functions that we see on other chains, such as ZK . guide Technology for scalability and privacy eg. “

The irony was that those same people, primarily employees of influential developer Blockstream, later rolled out Liquid, an Ethereum-style “side-out” network that enables token sales and decentralized funding on the Bitcoin blockchain, just as Wall had hoped to see. When Ethereum was blown away last year, Blockstream clearly wanted a piece of the action, marketing a series of NFT issues on the platform. Just as the NFT market is really starting to rock.

The questioner didn’t really kick in. On average, the majority of liquid blocks contain a single transaction: the miner pays for the privilege to verify the block. Wall said the failure resulted from a “lack of understanding by humans”. He added that Liquid developers, blinded by their loyalty to Bitcoin, failed to account for such issues as user experience and product suitability for the market. “You need to understand humans to understand why Liquid is so unattractive. Blockstream is only interested in their anal arguments, which is not how it affects the world.” (Blockstream did not respond to a request for comment.)

Similarly, over the past few years, extremists have supported platforms that enable the sale of Bitcoin-based tokens, and many more Defense Central stablecoins like tetherand recognizing their role in ensuring the liquidity and capitalization of Bitcoin. breathless the support For authoritarian Nayib Bukele, the introduction of Bitcoin as a legal currency in El Salvador was a particularly painful sight.

All of this begs the question: Are extremists so happy to betray their ideals when the opportunity presents itself? Are big gains made elsewhere in the cryptocurrency market easily spoiled?

House Rizzo, former CoinDesk An editor who now works at crypto exchange Kraken and is actively known as an extremist (although of a completely different kind), told me that none of the above constituted a “rot” or a betrayal of the principle: it was neither tokens, nor NFTs, nor stablecoins that did. The problem was. Instead, he said, the risk to retail investors is unregulated securities offerings on platforms like Ethereum.

“The criticism, he said, is not that non-Bitcoin tokens are bad per se, but rather that they are structured in such a way that responsibility is imposed on retail investors.”

He added that NFTs actually originated on the Bitcoin platform Counterparty (that’s TRUE!), and trying to bring it to Bitcoin is not a great deal. “The Bitcoin cap just states that Bitcoin is the only decentralized cryptocurrency,” he said. “It’s the only place where value accumulation and playback happen equally, so it is best that we strive to rebuild all things back on bitcoin (however long that takes), with the intent of bringing in as much as possible into it.”

However, it is difficult to reconcile Rizzo’s testimony to a deeply principled approach with the reality of the extremists’ many side projects: the supportFor example, for the aforementioned Tether, which runs on Ethereum and has historically been less than honest With retail investors, or the main cases in which the extremists clearly indicated Not They put any innovation back into Bitcoin. Who could, for example, forget the time Samson Maw, the former governor of Blockstream, backed one of Carter’s top critics last month – wait for that – Ethereum token!

Rizzo argued who – which The token was only available to accredited investors and not a risk to the humble retail investor, but then you have to ask: where are these people drawing the line? Is it about valuing the Bitcoin use case above all else? Or about making sure that any crypto innovations only work on Bitcoin? Or that the hash is not fragmented? What about the whole country that was shredded By Bukele’s Failed “Bitcoin Bond”?

Then there is the glut of noble promises and Byzantine prediction models that, one by one, come to no avail: Inventory Flow Modelwithout interruption amplify the “half,” Bitcoin as file “inflationary hedge”, as such digital cash Each is eventually abandoned when predictions are not proven. Other alleged extremist principles, such as aversion to state intervention, are equally expendable: most recently, including billionaire Bitcoin bull Michael Saylor Call For regulators to shut down competitors’ networks like Ethereum – even as they try to capitalize on imitation.

You have to wonder what extremism means, if any. In Rizzo’s view, the current tension of the extremes of hard money has little in common intellectually with the anarchic free-market ethos of capitalism that spawned, and Rizzo notes that many of the more liberal Bitcoin hawks like Ver and Voorhees long ago left with the express intent to pursue opportunities. other. The remaining core has embraced the brand’s semi-theological version of the ideology completely stripped of libertarianism and its temptations, selling seed oils, ketogenic diets, and wives. It’s clear that they also operate in the broader crypto markets – but only under the guise of a vague set of rationales.

At best, this particular brand of “extremism” is now a weather-shattered ideology, an idea that sells itself and rebrands with every market correction. Like a group of girls splatter and its symmetric members, the dogma is all zero form and content. It is an empty idea that signifies nothing permanent—rigid enough to instill devotion, but mercurial enough to survive the inevitable betrayals of its “toxic” followers.

That’s why I think the Bitcoin cap will last forever.

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