214 Interactions, 2 today
It has been some time since Tesla announced the halting of Bitcoin payments, with the company noting BTC’s high carbon footprint and related ESG issues at the time. But did it just get worse from there? Indeed, Elon Musk and Bitcoin‘s partnership appears to have deteriorated since then, as has the crypto-price. asset’s
The CEO of Tesla was in the news recently after he criticized Bitcoin’s highly centralized nature, a criticism that once again hurt the sentiments of many in the community.
Obnoxious threads like this make me want to go all in on Doge
— Elon Musk (@elonmusk) May 16, 2021
Alas, strategic investor Lyn Alden didn’t seem too affected by it, with Alden counterposing Musk’s decentralization claims during a recent discussion on The Investor’s Podcast Network with Jeff Booth.
While speaking to the host, the Founder of Lyn Alden Investment Strategy opined,
“BTC has been designed in a way that the nodes have the power. The partial centralization hash rate is not really a key factor.”
She also posed two questions that seemed to answer Musk’s aforementioned concerns. She queried,
” Is there a central development team that can override miners and nodes? No.
Is there a possibility for miners to push changes? No.”
As a result, it comes as no surprise that the BTC group is adamant about keeping nodes basic, mostly so that everybody can share in the consensus.
Having said that, Alden also discussed China’s position in the mining industry. “Miners, of course, play a significant role, but just because one country has the majority of hash rates does not give them complete control,” she said.
Another often expressed concern about Bitcoin has been its scarcity. However, according to Jeff Booth, author of The Price of Tomorrow,
“The strongest counter to periods of medium to high Bitcoin volatility is its non-discretionary asymptotic monetary policy.”
Booth went on to add,
“There are at least two dimensions that make Bitcoin a unique value proposition: First, it has a built-in asymptotic supply curve with a forever limit of 21 million Bitcoin. Second, it has an exponential demand curve largely derived from global decentralized interest and underbanked communities.”
It is worth noting here that, in Bitcoin’s comparatively short history, uncertainty has mostly trended downwards, with an ever-increasing market cap and price.
Finally, Alden shone some light on Ethereum’s bull run in comparison to BTC’s.
About the fact that many supporters of ETH are hopeful, Lyn Alden is not one of them. She has been dismissive of the world’s largest altcoin, as shown by her newly updated newsletter.
Having preferred Bitcoin over ETH as an investment, she quoted the main reason being “decentralization.”
“I view ETH more of equity where people are betting on the development team. Basically, make the system they envisioned rather than a decentralized native for of money which is what Bitcoin is. It is more of a structurally sound protocol where you can seperate fundamentals from price action.”