What happens to the crypto „currency” if random nodes in the system get disconnected forever, e.g. because:
one miner has sold their own bitcoins and they don’t want to burn more electricity to maintain it for the others for free,
another miner has died and his spouse has no idea how to handle it and where are the keys,
another miner’s servers got stolen when they’ve been on holidays,
next miner wasn’t good enough in IT and their servers got hacked and all data deleted,
next one had a computer virus and data have been deleted,
last miner got arrested … to die in cell years later, in the meantime there’s no one who can press the button and start the servers again after power outage.
The random bitcoins would cease to exits. That’s the main weakness.
The other weakness - multi-currency dilution:
The number of countries (and fiat currencies) is limited so people don’t realise that. Anyone can create a new cryptocurrency and there is no limit how many can be created.
Imagine the world with 100,000 different cryptocurrencies that compete for people to buy/use them.
So the „limit” you’re talking about is when all the fiat money printed in all countries are already converted to 10,000 crypto currencies and if some country prints more - a new crypto can be created to absorb it and dilute crypto-holders to the oblivion.
You need to notice one similarity:
[1] Countries print money (with no limit, they just add one more 0 in they balance sheet from time to time). There is a limited number of countries on the X axis, so they scale/dilute vertically (printing cash), which is unlimited.
[2] Cryptocurrencies that have limited number of coins cannot scale/dilute vertically, but this sector scales/dilutes horizontally (by adding new names of cryptocurrencies), which is unlimited.
The „limit” you’ve mentioned is that [2] is limited by [1], but only to some extend, because if the quantum of [2] is growing without [1] growing - then the crypto lose their value.
Random shit coins do not dilute the value of Bitcoin. Wtf is this take, lol?
And on top of the fact that random low market cap trash doesn't dilute Bitcoin, all the low market cap trash is almost entirely driven by Bitcoin anyway. The entire crypto market is highly correlated to Bitcoin, so whatever Bitcoin does, all the other shit mirrors.
What happens to the crypto „currency” if random nodes in the system get disconnected forever, e.g. because:
one miner has sold their own bitcoins and they don’t want to burn more electricity to maintain it for the others for free,
another miner has died and his spouse has no idea how to handle it and where are the keys,
another miner’s servers got stolen when they’ve been on holidays,
next miner wasn’t good enough in IT and their servers got hacked and all data deleted,
next one had a computer virus and data have been deleted,
last miner got arrested … to die in cell years later, in the meantime there’s no one who can press the button and start the servers again after power outage.
The random bitcoins would cease to exits. That’s the main weakness.
The other weakness - multi-currency dilution:
The number of countries (and fiat currencies) is limited so people don’t realise that. Anyone can create a new cryptocurrency and there is no limit how many can be created.
Imagine the world with 100,000 different cryptocurrencies that compete for people to buy/use them.
There's also no limit to how many companies can exist, and thus how many stock offerings can exist,
This is what markets are for; determining value.
So the „limit” you’re talking about is when all the fiat money printed in all countries are already converted to 10,000 crypto currencies and if some country prints more - a new crypto can be created to absorb it and dilute crypto-holders to the oblivion.
You need to notice one similarity:
[1] Countries print money (with no limit, they just add one more 0 in they balance sheet from time to time). There is a limited number of countries on the X axis, so they scale/dilute vertically (printing cash), which is unlimited.
[2] Cryptocurrencies that have limited number of coins cannot scale/dilute vertically, but this sector scales/dilutes horizontally (by adding new names of cryptocurrencies), which is unlimited.
The „limit” you’ve mentioned is that [2] is limited by [1], but only to some extend, because if the quantum of [2] is growing without [1] growing - then the crypto lose their value.
Random shit coins do not dilute the value of Bitcoin. Wtf is this take, lol?
And on top of the fact that random low market cap trash doesn't dilute Bitcoin, all the low market cap trash is almost entirely driven by Bitcoin anyway. The entire crypto market is highly correlated to Bitcoin, so whatever Bitcoin does, all the other shit mirrors.