The Problem With Sidechains & Craig Wright’s View Too
The battle rages on but, worse, two sides become more. In a recent article Jimmy Song suggests yet another alternative via sidechains. The problem? Put simply this is, basically, a return to banking as we know it. His argument, and that of sidechains, is that in allowing a fractional reserve Bitcoin, there is more for all:
This removes scarcity which kills Bitcoin, in allowing bitcoin to be a marker, we just go back to what we have and Bitcoin loses value.
As we have Dr Craig Wright’s ear we put the issue of sidechains to him and were delighted to he they bring to the Bitcoin table (bar basic human greed). He commented:
“Sidechains are Bitcoin’s inflation model. They enable those who like, want or understand scarcity to undermine Bitcoin and slowly erode its value.
This should be expected. A lot of developers do not have a strong understanding of economics, and in fact, believe it to be irrelevant. This is how the groups who want inflation gain control. A slow, insidious cancer that changes Bitcoin from the hard money system it is and into something the powers that be know, understand and can then control.”
He signed off with: “SegWit today… seigniorage next…” (Yes, we had to look that one up too).
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