The worst that can happen to the central bank is that it would need to explain a nominal loss to the government, which should not be a challenge as it is not obliged to generate profit and losses can be covered with newly printed money, also arguments how its loss benefits the rest of the economy can be easily constructed.
…onetary and property systems, because bitcoin opened the door for competition and created a market. This also shapes our understanding of what Bitcoin is NOT: a competitor to VISA or PayPal. It competes with local governments, legal systems and property rights — the fundamental layers of the existing stack — not with the payment processors that sit on top of it.
s over time as well. B…ssible, but it would have terrible long term consequences for cryptocurrencies generally. Moreover, it is very hard for to meaningfully differentiate against Bitcoin on trust because it takes time to develop trust. Bitcoin’s monetization has a similar effect on its trustworthiness over time as well. Bitcoin’s moat…
…in, but this useful work is accompanied by an increase in entropy and the production of waste heat. If the Bitcoin blockchain were an engine, dusty UTXOs would be a part of the waste heat it exhausts. As no engine is perfectly efficient, Bitcoin will never stop making dust.