Reasons the btc 'deathspiral' is nothing but FUD and won't work

I've seen plenty of posts lately (especially on r/BTC) about this 'dragonslayer' plot to put btc into a death spiral at the difficulty adjustment (which happened a little while ago). I don't think it will work.

1. The incentive structure works. It has worked fine for the last 9 years. If hash power leaves and fees go up, miners come back to collect the fees. During the last spam attack we saw some blocks that had fee rewards almost as much as the block reward. There is plenty of money to be made for miners.

2. The last bch pump happened before they had fixed their EDA. Their difficulty now adjusts very quickly. If miners flock to bch the difficulty will go up and it will be less profitable to mine. It's all self balancing.

3. Bcash is expecting that the low hash rate and high transaction fees will cause the btc price to plummet thus reducing mining profitability. If bitcoins main use case was as a exchange of value this might work, but it's not. There have been plenty of attacks before and the price keeps going up. People know this and they know what happened after the last attack from Roger. This time there will be less people willing to fall into their pump and dump trap.

My guess is that even if btc transactions came to a near standstill there would be plenty of people willing to wait for the next adjustment, at which time difficulty will drop dramatically and miners will flock back. We would need to see a massive drop in price (75+%) for it to remain less profitable at the next adjustment. Not gonna happen. There is a whole army of people waiting for the next big dip to buy in.

Don't be fooled. The incentives work. The Devs are top level. Wall Street is coming. Lightning is coming. And when it does bitcoin is going to be the best crypto in every respect.

Submitted November 25, 2017 at 02:23AM by Fly115 http://ift.tt/2i3bplT