Popular Bitcoin "maximalist" claims brought back to reality

September 22, 2021

I trust a handful of cryptocurrencies and BTC is one of them so by no means am I an anti-Bitcoiner, but I’m not maximalist or no-coiner. However, I see a lot of BTC maximalists say some popular claims that need to come back down to reality.

#1 - The “anonymous founder” fallacy.

BTC maxis like to say that Satoshi is anonymous which makes BTC leaderless and absent of worshipped. They often say the government can snatch known founders [Vitalik Buterin] and threaten the network.

You cannot prove that Satoshi wasn’t a lab at Raytheon [for example] and the anonymity of a founder is disingenuous because the operations of a peer-to-peer system are not dependant on an external entity by design. If a known founder [Vitalik] was snatched by the government, it might make FUD headlines, but the participants of the system will continue independently from that external event.

#2 - The “no premine” fallacy

BTC does have a premine. The founder, Satoshi, stealth mined billions USD worth of Bitcoin early on.

#3 - China banned Bitcoin.

China did not ban BTC mining and not even their state-sponsored media outlets claim this. The CCP disrupted BTC miners and ASIC makers as a regulatory crackdown. BTC miners are coming back online and ASIC makers are continuing operations but at the cost of increased government oversight. So, the CCP risk is still there and completely evident since the CCP nearly halved the BTC hash rate through its regulatory crackdown. This topic is nuanced and affects all PoW networks since chip supply chains are heavily concentrated in China.

#4 - PoW is more decentralized and PoS is not

Both PoW and PoS require one to stake an investment in the network to validate blocks and increase their stake to increase their chances of validating blocks. In a PoW system validators stake in energy, in PoS system validators stake in their value in the network. They’re both designed to determine concensus in a decentralized manner, but of course there are trade-offs. When I’m thinking of a decentralized PoW or PoS, then I’m thinking more BTC and ADA.

Its true that contemporary technology permits decentralization, it also permits centralization. It depends on how you use the technology. - Noam Chomsky

#5 - Just HODL, the market will recover.

Maxis: Just HODL your Bitcoin, the market will recover.

Wall Street: Just HODL your Stocks, the market will recover.

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Written by Stevan Lohja , a developer relations specialist, and full-stack technical writer from the USA. You should follow them on Twitter

Disclaimer: Not advice or recommendation. Views are my own and not a reflection of my employer.