Selkis Tips Fiat Agenda For Bitcoin

Ryan Selkis, known on social media as @TwoBitIdiot, has begun concern trolling over "wealth concentration" in Bitcoin and proposed moving Bitcoin to a permanently inflationary reward schedule by 2020. Such a change would of course never be implemented in actual Bitcoin, but the fact that it is being introduced by someone titled "Director of Investments" at some organization calling itself the "Digital Currency Group" strongly suggests that fiat interests in the United States that would like to not only inflate the blockchain in order to force centralization. It suggests United States based fiat interests would like to destroy the very image of what Bitcoin is.

Since Gavin moved to the dark side in 2013 there has been an increase in the efforts by fiat interests to attempt to neuter the grave threat that Bitcoin poses to them. The issue of blocksize and the issue of inflating Bitcoin in the manner that destroyed the value of a dollar is intimately related. A Bitcoin fork1 in which the network is forced into centralization by inflating the blockchain to Petabytes in size and users are forced into using SPV wallets is one in which the fiatization of Bitcoin through permanent inflation can not be contested by persons who bought into the fork. Of course this wouldn't be feasible immediately after a fork, the blockchain would need some time to bloat.

For people who buy into the altcoin whose blockchain bloats towards infinity as blocksize increases without any stop, the end game is Mike Hearn's vision of a Bitcoin network that consists of a handful of "Google scale" nodes. Parties who buy into this altcoin if they are lucky will be able to point their SPV wallets at the Google node, the Facebook node, the Chase Bank node, or the NSA node advertised as being run by a group of intrepid anarchists. At this point all it takes to change any part of the consensus that defines this altcoin's behavior is the few node operators colluding and issuing changes by fiat just as central bank governors do now. In the meantime Bitcoin will persist with its users watching these altcoin users attempt to live with the monster they chose. A monster which through a dearth of nodes became censorable and interdictable.

If you want to transact on the Bitcoin blockchain and can't there is a window to acquire that ability cheaply. Enough Bitcoin to transact on the blockchain for all the future can be had for far less than its actual worth. If however you want to try to feed seven billion hungry mouths with hope, social media, and spam there is probably going to be an altcoin released to help you keep pretending in the not too distant future.

  1. also known as an altcoin  

4 thoughts on “Selkis Tips Fiat Agenda For Bitcoin

  1. Selkis is one of those guys who thinks he is Bitcoin famous on the basis he was the first to break the news of the collapse of MtGox – his own claim. I linked him a trilema article predating his own prediction but he said something along the lines of the trilema article being based on rumour while his claims were based on fact (I can't find the exact tweet).

    Some people are so far behind in the race that they actually believe they're leading.

  2. Selkis equally embarrassed himself in and around Circle's USG-backed launch. It wasn't pretty.

  3. /me isn't entirely against a currency being slightly inflationary to pay miners, monero style

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