Even if the government succeeded in centralizing or destroying Bitcoin - It wouldn't matter!

Crypto is far bigger than Bitcoin right now. While we've heavily discussed the cost of attempting an attack on the Bitcoin network, there's far greater cost when we begin to talk about attacking the entire crypto industry.

Bitcoin has been great, regardless of what experts and maxis may say, there really isn't a guarantee that it will remain that way, but there's some sort of comfort in knowing that the ecosystem has grown past “bitcorn”.

An opinion blog was published on crypto.news today on how bitcoin could be destroyed by the government or a corporate entity.

Keypoints here include leveraging its power over the energy sector and the banking system to restrict the use of the network and some outright ban on it. Well, my summary is really better structured than the article itself.

Understanding The Cost Of Power Outage

Bitcoin mining requires a lot of energy, so if governments were to impose restrictions on energy usage or shut down internet access in certain areas, miners would not be able to continue operating their equipment. This would significantly slow down transaction processing on the network and make it less attractive for users.

Talking about imposing restrictions on the energy sector or cutting access to the Internet really just shows this writer's lack of understanding of basic business effects of overreaching power play.

The power sector is largely beyond bitcoin, so is the Internet. According to a 2013 report power outages already cost the United States $80 - $180 billion annually, what's the value of the Bitcoin network again?

In 2020 alone, the Internet contributed $2.45 trillion to the $21.18 trillion US economy at the time, so again I ask, what's the value of the Bitcoin network?

Let's not forget that “marketcap” isn't a very realistic metric in determining a network's value.

Having known these stats, it's really just a blunt delusion to “expect” or “assume” a government will attempt to take down bitcoin at the cost of what? Trillions of dollars? That's excluding just how much there'd have to spend to execute this plan.

This is just the United States we're focusing on, what about other large economies?

An attack on the power sector and the Internet would be disastrous worldwide, the cost poses unpredictable threats that major economies would not even dream of attempting - this is the reality of bitcoin.

But It wouldn't even matter

Let's say they succeed to centralized or stop? Bitcoin, what then? Sure, the cryptocurrency market will bleed but that's about it. Technology does not care about the value of a token on the markets, technology's role in the ever evolving world is to keep advancing, disrupting, rebuilding, reshaping and strengthening economies.

This tells us that crypto will survive even if bitcoin dies. Bitcoin, if we're being absolutely honest at this point, isn't even valuable for a whole lot of reasons.

Economy isn't about holding wealth in one asset, it's about “constant value flow”- so the excitement will remain where developments keep sorting new ways to cause the flow of value from one network or ecosystem to the other.

Tokenization of real world assets, monetization of virtual spaces, peer-to-peer data exchange, all of this will continue because it's simply business to take leverage of the fall of a giant(Bitcoin) to maximize gains.

There's always going to be a new crypto fungible token, a new NFT, a new blockchain game, a new DeFi platform, a new savings and investment protocol, a new social network and so on.

This is the point at which crypto is - bitcoin is largely insignificant as much as it is significant.

Posted Using InLeo Alpha