Dynamite article.
Taking coins out of circulation is a recipe for the coin having no value, as Dr Wright writes. You don't need a PhD to figure this out, just do an example on your table. As more currency is burned, it's harder to obtain and thus people who need it to transact are forced to pay extra to get it. But this does not occur. in a vacuum, there ARE other forms of payment. So the burned coin is abandoned from circulation and is only held. But even if price rises due to scarcity, that's the WORST result, as less HODLers means you are closer to just 2 people holding the coin. With less and less people holding the coin, even at higher prices, there's less interest by the population in owning it. You could take this example to two parties hodling 50% and 50% of the coins and having both parties paper net worths be $1 billion each. But if there's only 2 people owning it, the winner is the guy who sells first, and the loser is left with nothing. Niether can spend the coins, because no one else will take them. Why? Fees. As less people own the coin, and price goes up, fees MUST climb or there will be no mining rigs running to process the transactions. Less mining rigs means you're either closer to 51% attack by miner, or transactions must keep paying higher and higher fees to keep miners alive. This is a system that will die by hook or crook.
In reality, btc will die in a sell-off. There's no utility, no asset value in computation, so there's no lower limit to btc's valuation. It trends toward zero.
There's always a better option. Gold, USD, BitCoin SV-- something will have more utility than HODL-coin.
Craig is spot-on, with everything he writes in this article. If you think this article is crap, you're being swindled in a classic ponzi scheme.
This is what Szabo always got wrong-- he still thinks money is scarcity + public agreememt. Dead wrong.
Money is a proof of work. It's a real asset. BitCoin (SV) is a deflatioary money because like Manhattan Island there's only so many landing spots (coins). 10 quadrillion. If you want a seat on the BitCoin SV train, you must pay some other rider to get off the train. The train, it's tracks, and it's destinations' promise is the collateral for the ticket having value. Because the system of rails accepts the ticket, the ticket has value. It's always equal to one ride. If the train fills up in BitCoin, you must bid higher to get an already-occupied seat. But why bid higher unless going to your destination is valuable, has use, utility?
BitCoin is a system of computation, the seat you're paying for is ultimately, at scale, a right to computation on the world's future biggest network.
