BIP-110: Future of Bitcoin's Monetary Premium

If anyone's really looked into Bitcoin, it's clear the users call the shots. Miners and devs are just extras. If most users pick BIP-110 but miners don’t go along, then we'll end up with two Bitcoins. Talk about chaos. Both sides would claim to be the real deal, but that’s just the tip of the iceberg.

Time will tell… you can’t predict the future. A chain that’s 50x or 100x slower isn’t really doing its job. The chances of any flippening get slimmer as more blocks are mined. Once the majority chain hits 100 blocks, that’s when miners start using them, and merging those chains becomes a giant headache.

Thinking about this from an economics viewpoint. If you get into Austrian economics, you see monetization is a long game. People pick what they think serves their interests best, and that applies to money too. Money needs to be a store of value, medium of exchange, and unit of account. We judge money based on these traits.

Just look at BCH. They upped the block size and tried to handle more transactions, but got wrecked. Their chain is still around, but it’s less secure and way more prone to 51% attacks. It basically became just another altcoin. BIP-110 cuts down on use cases, making it look ‘better’ is a stretch.

You clearly don't grasp Bitcoin and its monetary premium. Not surprising though, seems like you’re a programmer who hasn't dug into its economic aspects. Bitcoin's more about the economics than the tech. You’ve gotta know what money is before you can get Bitcoin. Fiat isn’t real money in the true sense.

Will people stash their wealth in a chain that can’t even produce a block every 10 minutes? If you block spam transactions, you just end up slowing down the chain. Even with a bigger block size, if the time between blocks is massive, confirmed transactions won’t speed up. It's all about miner support.

We’re missing each other here. I’m coming from an economic angle while you’re off on another path. After checking out a video by Fred Krueger about BIP 111 and game theory, I get it now. It’s not a hard fork like I thought, but a soft fork, which means no chain split.

Exactly, soft forks shouldn’t split the chain if the majority of hashrate is on board. Just like how Segwit and Taproot managed it. But if miners resist a soft fork, they’ll start rejecting that chain, leading to a split. Users can always go that way, but then they need to find miners or mine themselves.

BIP-110 goes against the basic function of being money, similar to fiat managed by banks. Bitcoin was meant to take out third-party judgment from transactions. Luke-jr’s proposal wrecks that core idea and undermines what makes Bitcoin valuable in the first place.

According to your definition, the monetary premium will have to stick to the non-110 chain. For storing value, 110 could invalidate transactions already sent, undermining its usefulness. It can’t be a solid store of value if it risks taking your money.

Just to clarify, I'm no tech guru. My take is shaped by Austrian economics. Carl Menger, back in 1892, explained how money rises naturally in markets. It takes time to go from a collectible to a store of value, then to a medium of exchange, and finally a unit of account.

Running a node costs the same regardless of the software. With storage prices on the rise thanks to the AI craze, that part won’t change anytime soon.

If miners don’t back it, where’s the chain for users to jump to? It’s really more about the community dividing than a true network split. The majority will stick to the chain with the most proof of work. Remember 2017? No one doubted Bitcoin vs. BCH.

Honestly, the setup might speed things up. Checking certain scripts could be faster than the current methods. Blocking spammers might just push them to find other ways, making payments trickier. OP_RETURN came around because other data methods caused bigger issues.

The network that truly upholds Bitcoin’s vision will remain the real Bitcoin. You’ll see it in the price and how users engage. The original Bitcoin’s price will shoot up, proving which one is legit, while the imitation will crash and become altcoin material.