{"id":12495,"date":"2021-09-24T18:54:41","date_gmt":"2021-09-24T18:54:41","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/gavin-andresen-publishes-theory-of-possible-crypto-future-whales-shut-down-the-btc-network-in-the-year-2100\/"},"modified":"2021-09-24T18:54:41","modified_gmt":"2021-09-24T18:54:41","slug":"gavin-andresen-publishes-theory-of-possible-crypto-future-whales-shut-down-the-btc-network-in-the-year-2100","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/gavin-andresen-publishes-theory-of-possible-crypto-future-whales-shut-down-the-btc-network-in-the-year-2100\/","title":{"rendered":"Gavin Andresen Publishes Theory of Possible Crypto Future: Whales Shut Down the BTC Network in the Year 2100"},"content":{"rendered":"

On September 21, former Bitcoin developer Gavin Andresen published an interesting blog post about \u201ca possible [Bitcoin] future.\u201d The blog post details a theoretical situation for the Bitcoin network in 2061, where most [bitcoin] transactions don\u2019t happen on the [Bitcoin] network.<\/strong><\/p>\n

A Theoretical Look at $6 Million Dollars per Bitcoin and the Year 2061<\/h2>\n

Following Satoshi Nakamoto\u2019s departure from Bitcoin in 2010, for a few years, Gavin Andresen<\/a> was considered the software\u2019s lead maintainer after Nakamoto left him the keys. In 2011, Bitcoin developer Mike Hearn also claims he received an email<\/a> from Satoshi which said that the blockchain inventor \u201cmoved on to other things\u201d but also added, \u201cIt\u2019s in good hands with Gavin and everyone.\u201d However, Andresen is not the lead maintainer anymore, and has not been an active Bitcoin Core developer in years.<\/p>\n

Censored on Reddit r\/bitcoin (I think, but maybe I\u2019m just not looking in the right place)<\/p>\n

\u2014 Gavin Andresen (@gavinandresen) September 22, 2021<\/a><\/p>\n<\/p>\n

In the past, Bitcoin.com News covered<\/a> Andresen\u2019s opinion concerning Ethereum\u2019s Tornado mixing protocol and wallet privacy in general. Andresen also discussed<\/a> the Bitcoin Cash (BCH<\/a>) network in January 2018 in a proposal he wrote called \u201cStoring the UTXO as a bit-vector.\u201d In more recent times, after the Tornado mixing blog post, Andresen shared his opinion in a blog post called: \u201cIt\u2019s not about the tech (yet?)<\/a>\u201d Then, on September 21, 2021, Andresen once again has something to say about the Bitcoin (BTC<\/a>) network.<\/p>\n

The former Bitcoin Core developer said that people should \u201ctake this as a little piece of science fiction,\u201d however, he further added, \u201cof all the possible futures I think this has as good a chance of any of happening.\u201d<\/p>\n

\u201cImagine: it is the year 2061,\u201d Andresen writes in his latest blog post<\/a>. \u201cThe BTC<\/a> price is six million US dollars\u2013 equal to about a million 2021 dollars because of inflation. Miners are being rewarded 0.006103515625 BTC<\/a> per block, plus transaction fees of about 5 BTC<\/a> for 4,000 or so transactions ($7,500 per transaction). But most BTC<\/a> transactions don\u2019t happen on the BTC<\/a> network. Most BTC<\/a> is locked up in multisignature outputs secured using multiparty computation and mirrored on another chain as \u2018wrapped\u2019 tokens,\u201d Andresen adds. The blog post further stresses:<\/p>\n

People moved their BTC<\/a> either because they want faster transactions, lower fees, more privacy, or want to invest their BTC<\/a> in decentralized financial stuff. Or maybe all of the above. The transactions that do occur on the main BTC<\/a> network are high-value, mostly between super-whale-size holders (centralized exchanges, central banks, and the decentralized multiparty computation addresses that hold all the wrapped coins).<\/p>\n

Andresen: \u2018The Possibility of Zero Bitcoin Circulating on the Bitcoin Network\u2019<\/h2>\n

Andresen\u2019s theory could very well happen and there currently is a lot of wrapped or synthetic bitcoin (BTC<\/a>) being used on other blockchains. Dune Analytics shows the number of BTC<\/a> leveraged via Ethereum is 269,642 BTC<\/a> across seven different projects. The Wrapped Bitcoin (WBTC) project commands an aggregate total of 205,921 of those coins at the time of writing. Andresen continues his theoretical post by saying the super whales take hold of the network forever.<\/p>\n

\u201cThese whales maintain the BTC<\/a> network forever,\u201d Andresen writes. \u201cThey are the miners and the transaction creators; they don\u2019t care how high transaction fees go, because they receive as many fees as they pay. In the year 2100, the whales notice that the mining reward is basically zero, and there are fewer and fewer transactions happening on the slow, expensive, zero-privacy BTC<\/a> network. So they decide to simplify and save money by shutting it down,\u201d the former Bitcoin developer adds. Andresen\u2019s blog post goes on:<\/p>\n

One by one, they shutdown the \u2018bridges\u2019 that move BTC<\/a> between chains. Then they burn any BTC<\/a> locked on the BTC<\/a> chain by sending it to the 0x000\u2026 address, to make sure nobody can ever spend it on the BTC<\/a> network. Eventually, there are zero new BTC<\/a> being produced on the BTC<\/a> network, and zero BTC<\/a> circulating on the BTC<\/a> network. There is nothing left to secure, and the chain stops.<\/p>\n

Are Sidechains Competitors or Will They Help Bitcoin Scale?<\/h2>\n

Andresen concludes that roughly \u201c20-or-so million BTC<\/a>\u201d will circulate on other blockchain networks. \u201cValuable because there are a limited number of them and because BTC<\/a> was the first scarce digital asset,\u201d Andresen deduces at the end of his blog post. Interestingly, the topic is being discussed in recent times, but not necessarily stemming from Andresen\u2019s blog post.<\/p>\n

By not actually settling anything in a discrete way.<\/p>\n

I am not attacking Bitcoin, I am attacking Bitcoin misconceptions. <\/p>\n

Don’t be upset, learn.<\/p>\n

\u2014 John Carvalho (@BitcoinErrorLog) September 24, 2021<\/a><\/p>\n<\/p>\n

For instance, on September 24, the bitcoin pundit John Carvalho, otherwise known as \u201cbitcoinerrorlog,\u201d said<\/a>: \u201cGood morning, sidechains compete with Bitcoin, not scale it. (They also don\u2019t actually exist.)\u201d Carvalho followed up his tweet with the following opinions<\/a>:<\/p>\n

The original idea and design of a two-way peg was never achieved
\nThey should be called anchorchains or something
\nThey are like shitcoins that compete for transactions instead of as money.
\nThey do not reduce sh**coin usage
\nThey are not \u2018on\u2019 Bitcoin<\/p>\n

Although, not everyone agreed with Carvalho\u2019s opinion about sidechains. The bitcoin (BTC<\/a>) proponent John Light shared his opinion about Carvalho\u2019s statements:<\/p>\n

\u201cGood morning, sidechains that use BTC<\/a> as the native asset and pay bitcoin miners for security don\u2019t compete with bitcoin,\u201d Light tweeted<\/a> in response. \u201cEven if sidechains that use BTC<\/a> as the native asset didn\u2019t pay bitcoin miners for security, they would be no less competing with bitcoin than, say, Lightning which siphons fees away from miners to LN routing nodes,\u201d Light added<\/a> in his Twitter thread. Light also shared a paper<\/a> called \u201cScaling bitcoin with sidechains\u201d and concluded:<\/p>\n

Sidechains also help scale bitcoin.<\/p>\n

What do you think about Gavin Andresen\u2019s recent theoretical blog post about the Bitcoin network in the future? What do you think about the conversation between the bitcoin proponents John Carvalho and John Light? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nFeatured, Bitcoin, Bitcoin (BTC), Bitcoin network, Bitcoin on Ethereum, Blog Post, BTC on ETH, Competitors, Cross-chain, debate, discussion, Dune Analytics, Gavin Andresen, Help BTC scale, John Carvalho, John Light, Mike Hearn, Multi-Chain, Satoshi Nakamoto, sidechains, Theoretical, Whales, Whales Shut Down, Year 2066, Year 2100<\/p>\n","protected":false},"excerpt":{"rendered":"

On September 21, former Bitcoin developer Gavin Andresen published an interesting blog post about \u201ca possible [Bitcoin] future.\u201d The blog post details a theoretical situation for the Bitcoin network in 2061, where most [bitcoin] transactions don\u2019t happen on the [Bitcoin] network. A Theoretical Look at $6 Million Dollars per Bitcoin and the Year 2061 Following…<\/p>\n","protected":false},"author":0,"featured_media":12496,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12495"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12495"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12496"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}