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The Present and the Future of Bitcoin: Part 2

Remember periods like these.

I've always had issues with some of the PoW talking points. (note: I am a BTCer and PoW advocate)

"Anyone can mine BTC."

Yeah, well, anyone can also light money on fire.

This Bitcoin take is just not a great one.

<0.1% of the world can mine BTC PROFITABLY. And Bitcoin is all about incentives, right?

So, no one should be saying this.

A feather in the cap of PoS, literally anyone can stake profitably. Therefore, incentivizing a wider participating cohort. @RyanSAdams

PoW is awesome but not infallible

It's def largely driven by access to cheap energy. Which, there's a whole debate to be had about whether global money should be centered around that or not 🤷‍♂️ @thetrocro

It's also not JUST dependent on who is the best allocator of capital...

It's very susceptible to corruptible factors like:

1) economies of scale: this is undeniable & has played out over the 14-year history. BTCs own version of the rich-get-richer critique

2) supply chains & relations with ASIC manufacturers... which depends on chip producers...

which has now become one of the most politicized "commodities" on earth.

There certainly exists a future in which the most prolific miners AREN'T the best allocators of capital but rather the ones with access to ASICs based on backrooms deals and nation-state sanctions. @nlw

3) Throw in ESG buffoonery, rogue states like Russia who can mine for nothing, and more....

and you quickly see how the idyllic dream that BTC mining is open, permissionless, meritocratic, or whatever could easily slip away.

@ODELL

So while miners go bankrupt and the space consolidates, pay mind to who makes it out on the other side. @lee_bratcher

Is it the space weeding out the weak? Is it becoming more robust than before? Are the new miners what BTC is optimizing for?

Or is there more to the story? 👀

This post is based on this twitter thread.

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