You shouldn't call it "losing 5%," BTC price is not an exchange rate, it's a measure of exchange volatility with an integral component tracking trust in ECC, network availability. It's silly to try and compare software to what is essentially a government-financial-corporate feedback loop and it's behaviors.
Every country could severely limit mining, and the supply would continue its steady velocity, whereas sometimes executive behavior spurs financial institutions to simply make the federal banks buy everything.
Fractional reserve banking is an inherently unstable system.
True federation is not.
Ethereum crossed a similar threshold at the merge reducing the calculus, but it's not clear to me if there are any more "difficulty bombs" built in where executive control can be expressed, say in the consensus layer where unilateral control can be expressed over supply.
> You shouldn't call it "losing 5%," BTC price is not an exchange rate, it's a measure of exchange volatility with an integral component tracking trust in ECC, network availability.
No, I'm talking about the exchange rate. I don't care what bitcoin means internally or how it functions, I care about what it's worth on the market today and tomorrow, because there's no to way live in the purely crypto world.
That's the whole point of a currency, that you and I agree that some instrument of value will stay consistent enough to transact with. Crypto is just not there because the ecosystem is full of scams. You could design a perfectly federated system that's worthless because bad actors abuse the platform. If you build a system that assumes everyone is a criminal, then that's what you wind up building, a system in which everyone is a criminal.
Every country could severely limit mining, and the supply would continue its steady velocity, whereas sometimes executive behavior spurs financial institutions to simply make the federal banks buy everything.
Fractional reserve banking is an inherently unstable system.
True federation is not.
Ethereum crossed a similar threshold at the merge reducing the calculus, but it's not clear to me if there are any more "difficulty bombs" built in where executive control can be expressed, say in the consensus layer where unilateral control can be expressed over supply.