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"Satoshi" choose to produce the largest percentage of the total Bitcoin supply to the smallest group of users for the lowest computational effort/value input.
by cryptodogemoon 9y ago
"Satoshi" choose to produce the largest percentage of the total Bitcoin supply to the smallest group of users for the lowest computational effort/value input.
Rather than designing the supply distribution to coincide with increasing computational and energy value input, the production curve was crafted to gain control of as many coins as possible before anyone else joined the network.
This is a catastrophic design flaw as it means the majority of BTC in circulation was created with very low value input. i.e. 10,000 bitcoins shouldn't surpass the value of two pizzas.
The current value is a mix of passing on the "coins" to greater fools who only think someone else will buy their coin at a higher price. Combined with exchanges which arnt required to publish their reserves, or prevent insider trading or falsifying bids.
More stability will come if verifiable liquidity is offered at any of the exchanges. As we've seen many times, panic sells over trivial news and rumors create freefalls in price from the absence of buyers willing to hold the bag.