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Could these obstacles intervene in the future of Bitcoin (BTC)?


I would like to list some aspects that in the future could bring Bitcoin to “intensive care”, in other words, remove oxygen from Satoshi's original project, whose main objective was to create a coin decentralized, anonymous and resistant to censorship.

When I got closer to the world of cryptocurrencies, I was fascinated by the idea that Bitcoin could be an alternative currency to the current ones and that the government's monetary monopoly could be gradually replaced by a peer-to-peer currency.

Unfortunately, over time, I realized that the financial interests of governments are so strong that a digital currency (Bitcoin in this case) is seen as a threat by central powers.

The question is whether in the future governments will be able to stop or at least delay the development of the Satoshi Nakamoto project.

I will focus on three aspects, namely the decentralization, he anonymity and the censorship because I see them as a starting point to claim that Bitcoin could be heading to a point of no return.

The question is: "How could institutions like central banks, governments and corporations stop the take-off of bitcoin that depends on blockchain technology? What are the weapons that governments could unleash?

The answer is that some of the attacks are already underway, others may materialize, all of which pose a serious threat to Bitcoin's future.

Given that Bitcoin production is accomplished through the work of miners, who use the computational power derived from ASICs, what would happen to a centralization of the mining process or a ban on the import and export of ASICs?

This factor could have a major impact on one of the aspects I was talking about initially, namely decentralization.

If BTC is based on a peer-to-peer model, whereby each person can send and receive money through their own wallet, what would happen if in the future governments decided to encourage custody (exchange) models through which would collect taxes automatically?

This would take power away from people and give it to lawmakers. The increase in custody models would be a gateway through which the governments would control people's savings and perhaps they would use these funds through a fractional reserve model.

Another problem related to BTC survival concerns the capacity of the blocks (number of transactions per second), which are currently around 3.

What is the point of maintaining the 1Mb limit in a world approaching a 5G connection? Due to the 1Mb block limit, the number of future transactions (which will probably increase considerably) will increase transaction costs And, in this case, BTC cannot be used as a spending currency, for example (in essence, what Satoshi Nakamoto states in the title of his technical document would be missing, Bitcoin: a peer-to-peer electronic cash system).

In this scenario, BTC will never be able to compete with FIAT currencies.

Why BTC developers, those who basically control the protocol, can decide that BTC should not be a currency but digital gold? Isn't it suspicious that setting the 1Mb limit is more convenient for central banks than for people?

Another very important aspect is the link that exists between privacy and censorship. BTC will be subject to the supervision of the institutions that will have access to KYC data, in this case, the centralization of the data (that is, the ability to read the blockchain) would be in the hands of actors capable of deciphering the chain of blocks and therefore knowing who is actually involved in the various transactions (in this case, monitoring may be associated with censorship).

If the entire ecosystem that revolves around cryptocurrencies considers these aspects, then one could imagine a future in which Bitcoin will be remembered as a project that opened the door to other ecosystems that will guarantee decentralization, anonymity and resistance to censorship. .

One of the ecosystems that today could revolutionize the world of cryptocurrencies and that, at the same time, could make BTC assume a different role, is DeFi (decentralized finance).

Today, with the birth of decentralized finance, bitcoin could become a real bridge to through which to access a truly decentralized ecosystem (dApps, DEX).

There could really be a paradigm shift, in which BTC will definitely go from a means of payment to a store of value, and will be used as a "guarantee" to have spendable liquidity through projects such as pTokens and wBTC.

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