Prominent trader and Bitcoiner Willy Woo has commented on a most modern observation made by any other trader, Kashyap Sriram, about gold and BTC, and whether or now not Satoshi copied Bitcoin’s model from that of gold.
Willy Woo additionally elaborated on whether or now not a hypothetical shutdown of the Bitcoin mining community is an “unbelievable” idea.
Bitcoin vs. gold – Is that Satoshi’s idea?
Kashyap Sriram claimed that after Satoshi was once engaged on Bitcoin, he saved gold in thoughts. In instruct, the Bitcoin creator even previous the be conscious “mining” to divulge a “coinbase transaction” (the principle transaction in every new block started on the community) since “every new block begins with a miner reward.”
Nonetheless, Sriram acknowledged, there would possibly be a key incompatibility between gold mining and Bitcoin mining. This trader believes that “if all the gold miners ceased operations lately, gold will tranquil have fee,” but when all Bitcoin miners were to streak offline, “the cost of Bitcoin goes to zero.”
He explains this hypothesis as follows: “All bitcoin HODLers will maintain is an unspent transaction output on a defunct chain, that also can unprejudiced never be transferred or spent.” He reckons that here is a precise prospect for BTC since all the Bitcoin community is below the control of 11 mining pools. Besides, he added that “Bitcoin mining is extensive capital intensive, extremely concentrated, and as a end result of this fact, extremely inclined.” He claimed that for this motive “gold is making all-time highs, Bitcoin shouldn’t be always.”
Willy Woo on Bitcoin mining hypothetical shut-off
Sriram does now not believe in decentralization in Bitcoin, calling it “a delusion.” The $1.2 trillion market capitalization of the leading crypto, he acknowledged, is in step with “a mining community fee around $25 billion,” which is “a mere 40% of the market cap of gold miner Newmont NEM.”
“The Bitcoin community is intensely, very fragile and on the mercy of some giants,” Kashyap Sriram acknowledged, at the side of that “gold has won the combat” because he believes gold mining to be solely decentralized and gold does now not rely as grand on the mining industry as Bitcoin does.
Ample that can perhaps well be unbelievable. I’d fire up my laptop and mine myself some BTC and obviously I’d be the finest one because every person else is too fragile to mediate it.
— Willy Woo (@woonomic) August 19, 2024
Willy Woo weighed in to touch upon this. He known as the hypothetical relate of all Bitcoin miners going offline “unbelievable.” In this case, he acknowledged, he would possibly well well be in a build to originate mining BTC himself and mine a ranking of Bitcoins.
