The resolution of the Bitcoin experiment
Mike Hearn
8.1K345

This isn’t the end of cryptocurrency; it is merely a crisis. There will be some outcome, and it will make cryptocurrency stronger. If bitcoin somehow collapses, some other cryptocurrency will step up and take its place. It is, after all, an experiment.

But I don’t see bitcoin failing from this. The whitepaper was inspiring to me because it proposed a *completely decentralized* consensus system, for the first time. It works by always counting the chain with the most proof-of-work as the correct chain. It is thus impervious to centralization, as any party with sufficient resources to attack the chain would benefit more by simply being honest, and contributing to the value of the currency. In the end, a completely decentralized system is subject to the rules of economics, and in bitcoin’s case, centralization *visibly reduces* the size of the economy. Thus, there is always an incentive to keep things decentralized. Because cryptocurrencies are allowed to fail, and because infinite competition is allowed, the crypto economy is the most free economy in history, and in the long term, this will make it the most successful and prosperous economy in history. Bitcoin will not fail because there are $6 billion invested in it. It may shrink for a while, but economic contractions are a fact of life. It will be back.

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