I’ve been ruminating on several key aspects of #Bitcoin recently, including the #Halving, #ETFs, and the implications of mining all 21 million Bitcoin. Let’s delve into these topics.
Starting with #ETFs, I believe they serve a dual role. On one hand, ETFs are beneficial as they provide exposure to Bitcoin without the need to actually own it, making it more accessible, especially for the older generation. However, on the other hand, ETFs could potentially make Bitcoin more reliant on fiat currencies, possibly stabilizing it and reducing its inherent volatility. In a worst-case scenario, a bank run could lead to a massive sell-off of Bitcoin ETFs, causing the price to plummet.
Moving on to the #Halving and #Miners, the halving is anticipated to trigger another bull run, which could help miners whose revenue will be halved. However, there may come a time, whether it’s this halving or the next, when mining becomes so unprofitable that the cost of power outweighs the earnings, leading to a significant number of miners going bust or bankrupt.
Another point to consider is the interplay between ETFs and the halving. I suspect that the halving won’t have as significant an impact as previous ones due to the stabilizing effect of ETFs. As a result, I predict the next bull run will only bring Bitcoin up to 80K-90K.
Lastly, let’s discuss the 21 million cap. Once all Bitcoins are mined, what will be the incentive for using Bitcoin and protecting the network? While I’m not an expert, I do have a suggestion. When all 21 million Bitcoins are mined, we may need to switch to a proof-of-stake model, which currently seems to offer the best network protection and incentive. However, this would require creating an unlimited amount of Bitcoin, which contradicts the 21 million cap set to hedge against inflation. Therefore, someone with more expertise will need to devise a solution that continues to incentivize network protection and usage of Bitcoin while maintaining the cap.
These are just some thoughts I’ve had on these matters. I’m eager to hear your thoughts on what I’ve said or any thoughts you may have on the same topics. #CryptoThoughts"
beitmenotyou / Michael J Burgess
npub1ytn…x7a5
2024-02-09 00:06:52
Author Public Key
npub1ytnq39um06ultqr5m28uznkzepkmkqfdj9r56hcyqcqmh07rq99szhx7a5Published at
2024-02-09 00:06:52Event JSON
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"content": "I’ve been ruminating on several key aspects of #Bitcoin recently, including the #Halving, #ETFs, and the implications of mining all 21 million Bitcoin. Let’s delve into these topics.\n\nStarting with #ETFs, I believe they serve a dual role. On one hand, ETFs are beneficial as they provide exposure to Bitcoin without the need to actually own it, making it more accessible, especially for the older generation. However, on the other hand, ETFs could potentially make Bitcoin more reliant on fiat currencies, possibly stabilizing it and reducing its inherent volatility. In a worst-case scenario, a bank run could lead to a massive sell-off of Bitcoin ETFs, causing the price to plummet.\n\nMoving on to the #Halving and #Miners, the halving is anticipated to trigger another bull run, which could help miners whose revenue will be halved. However, there may come a time, whether it’s this halving or the next, when mining becomes so unprofitable that the cost of power outweighs the earnings, leading to a significant number of miners going bust or bankrupt.\n\nAnother point to consider is the interplay between ETFs and the halving. I suspect that the halving won’t have as significant an impact as previous ones due to the stabilizing effect of ETFs. As a result, I predict the next bull run will only bring Bitcoin up to 80K-90K.\n\nLastly, let’s discuss the 21 million cap. Once all Bitcoins are mined, what will be the incentive for using Bitcoin and protecting the network? While I’m not an expert, I do have a suggestion. When all 21 million Bitcoins are mined, we may need to switch to a proof-of-stake model, which currently seems to offer the best network protection and incentive. However, this would require creating an unlimited amount of Bitcoin, which contradicts the 21 million cap set to hedge against inflation. Therefore, someone with more expertise will need to devise a solution that continues to incentivize network protection and usage of Bitcoin while maintaining the cap.\n\nThese are just some thoughts I’ve had on these matters. I’m eager to hear your thoughts on what I’ve said or any thoughts you may have on the same topics. #CryptoThoughts\"",
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