1/25) BTC is fools gold

A purely speculative game of greater fool theory

Without utility, security or scarcity, BTC is not competitive!

Bitcoin already died in 2017

Due to a dramatic shift in purpose, economics & vision

In this thread I will cover why BTC is doomed to fail:

2/25) The blocksize debates changed BTC!

Far from being unchangeable

BTC is now unrecognizable to early adopters such as myself

Having abandoned all that it once stood for

Years later with a new flawed path set in stone

BTC faces a severe security dilemma in the near future:

3/25) Bitcoin was initially designed to be inflationary during its bootstrap phase

As it gradually transitioned into its final deflationary phase

Bitcoin & for that matter all decentralized cryptocurrencies

Require a token with value in order to maintain security & function

4/25) This is because blockchains leverage value for cryptographic & distributed game theory

In other words;

Blockchains have a very big stick & carrot to dish out reward & punishment

In order to incentivize good behavior

This leads us to the security dilemma of Bitcoin:

5/25) Due to the inflationary phase ending, fees have to replace inflation!

If the system cannot generate sufficient fees within a decade the long term security model fails!

Due to the security budget dropping to low

As fees fail to replace inflation due to a lack of utility

6/25) BTC is now doomed by their own decision of limiting the blocksize

BTC has to double in value every four years for the next century or sustain extremely high transaction fees!

However, such exponential growth in value is impossible since it would quickly exceed global GDP!

7/25) Fees will also never reach sustained extremes, due to the ratcheting effect of the fee market

Therefore; BTC security is doomed!

Once this becomes reality it will be too late for a blocksize increase

Leaving a supply increase as the only option left to maintain security!

8/25) What holds BTC back from fixing these problems before it is too late is its governance & toxic culture

I extensively covered BTC governance here:

https://medium.com/cyber-capital/theory-on-bitcoin-governance-three-stage-model-v-1-0-98a8b83095b0

I argued that BTC governance is systemically flawed due to a lack of long term incentives on miners

9/25) BTC's history of power struggles & civil wars

Has resulted in the status quo dominating BTC politics today

This in part due to almost all dissenting voices leaving for competing cryptocurrencies during these previous time periods

This combined with extreme censorship;

10/25) Has created an echo chamber with a self reinforcing selection bias for the leading personalities

Toxicity, closed mindedness & hostility are all symptoms of BTC's deeper flaws

This is the cause of their insecurity

Which demands fictitious narratives from its supporters

11/25) As falsehoods, fantasy & wishful thinking are the only ways to keep selling BTC to the greater fool

Even resorting to tactics from the ponzi playbook

I do not want to be associated with BTC anymore

As it no longer represents the beautiful dream I once fell in love with

12/25) The dominant personality type is now the polar opposite of when I first joined in 2013

The same collective psychological spirit that I fell in love with in 2013

Now thrives in BTC's competitors

Stop selfishly pretending as if BTC still supports its original lofty goals!

13/25) BTC's competitors now hold up the torch of freedom

Serving as our new refuge from this insanity

BTC does not exist in a void, it has to compete, evolve or die

It takes centuries for an SoV to truly become established

Based on its utilitarian & Aristotelian attributes

14/25) Attributes which BTC no longer possesses, especially in the face of the competition

Maximalists act as if BTC's decade old history can never be overcome

While attempting to overcome the multiple millennium history of gold

It is a delusional fantasy inspired by greed

15/25) Abandoning the much larger & more significant market that Bitcoin was created to compete with:

Modern fiat currency

Modern fiat currency has existed for less then a century

Before fiat we used commodity money for the majority of human history

As money & store of value!

16/25) True cryptocurrency embraces this revolutionary aspect; combining SoV & money

Just like the historical use of commodity money

Forming an unbeatable synergy in digital form

BTC has long since abandoned this original vision, which is why I left after the blocksize debates

17/25) Ethereum & almost all BTC competitors have adopted Bitcoin's original vision

A digital equivalent to the precious metal coins of our historic past

While BTC still denies its roots as P2P cash: gold as a commodity currency:

Destroying utility in favor of pure speculation

18/25) BTC is the only cryptocurrency that considers low capacity & high fees a positive feature

Requiring the utmost of vigor in ideological defense

During the blocksize debates, I realized that this would slow down mass adoption by atleast a decade

Necessitating a flippening

19/25) The cryptocurrency market has to now overthrow the incumbent

Before it can truly thrive again

Better to swallow that bitter pill now, as opposed to extending the pain

By propping up what has become a fundamentally flawed asset & network

That is doomed to fail anyway

20/25) There is a understanding among major players not to expose BTC

Greed & fear of BTCs fall dragging all down motivates inaction

We are better off ripping that band aid off now rather then later

Have some intellectual honesty for gods sake & break the silence!

21/25) I appreciate wanting to keep BTC decentralized

However, we can support 128MB blocks (4xPayPal) on a decade old laptop right now

Without compromising decentralization at all

Refusing to scale for such a small trade off has been the single most disastrous decision for BTC

22/25) Supply is irrelevant, without demand

BTC rejected utility for the sake of SoV, ruining both in the process

The utility of blockchain is profoundly valuable

A purely speculative asset such as BTC will be left behind in the wake of assets with tangible economic benefits

23/25) BTC is a extreme case of wishful thinking

A simple but flawed narrative, attractive to the masses

Without any foundation in utility, BTC is a purely speculative asset

Only bought in the hope that the price will go up, just like a ponzi

That is not a real investment!

24/25) I have witnessed BTC steadily devolving from 2013 onwards

Like slowly boiling a frog many do not notice the incremental change

BTC has become the antithesis of what the Bitcoin community used to stand for

Like night & day others carried on the banner for freedom instead

25/25) BTC is on borrowed time

Hand waving away its deeply flawed design

Failing to move with the times & ideologically entrenched in a flawed design

BTC is not exempt to competition!

The Bitcoin dream now thrives in its children instead while BTC is left behind in the dust