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RE: Did Satoshi Create an Inferior Asset on Purpose?

in LeoFinance4 years ago (edited)

I agree exactly that:

the key to Bitcoin is security and robust resistance to attack.

V.B. once said/wrote, Bitcoin does one thing and one thing very well, a secure store of value, resistant to attack.

VB also said/wrote:
Ethereum does one thing very well, facilitates smart contracts and commercial interactions.

He then said, a cryptocurrency can't be the most secure and the most useful. It can eith be the most secure, or the most useful. It can't do both equally well. You have to give up security for utility, or utility for security.
Bitcoin is all about security, not utility. You are right that deflationary tokenomics, is both a feature and a flaw.

As for the future of DeFi, it is clear to me that the typical DeFi yield farm project demonstrates incredible utility, but horrible security. They are hugely illustrative of my above points. And your point below.

The future of currency is defi and printing a lot of money that helps expand the network. Bitcoin isn't that, and that's fine. I starting to think that Satoshi realized that the whole time. They didn't create an environment, but rather just one creature within that environment that can support thousands of animals in a completely sustainable manner.

The next thing, which we are only now coming to grips with is the Proof of Work is the most decentralized system we have, and that in addition to sacrificing security for Proof of Stake and its many variations, we are giving up on decentralization. We are embracing degrees of centralization, in exchange for faster transaction times, and lower transaction fees.

As you wrote many times during and after the Justin Sun takeover, we embraced DPOS and saw its flaws as features, until those flaws were used against us. We surrendered the security of POW for the benefits of DPOS and the wonderful economy we could build upon it. But we must recognize those features come at a price, security for utility.