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RE: Secrets of Bitcoin’s Dystopian Valuation Model

in #bitcoin5 years ago (edited)

BTC that isn’t stored in legacy Satoshi v0.5.3 address which begin with a 1 and instead are stored in the “soft-forked” altcoin Bitco[i]n Core protocol addresses (aka SegWit) which begin with a 3, will be donated in the future to the miners when they take all those said “pay to anyone” SegWit donations.

Here's a list of the top most wealthy bitcoin addresses. The top five are all Segwit addresses and only 3 are of the original header on chain type.

Screen Shot 2019-05-28 at 3.06.41 PM.png

At what point does it make mathematical sense to seize the "pay to anyone" segwit? Is there some sort of game theoretical Schelling point around which miners could coordinate? Seems to me that in the short term that such a massive theft would crash the price of bitcoin in the short term as many will panic not understanding what is going on and flee the marketplace. These things have happened in the past (Mt Gox, DAO hack of ETH, etc) and the result crashed the price each time.

A move of claiming only the top 20 segwit addresses alone right now would exceed the number of bitcoin stolen from Mt Gox. (>850,000 BTC). If such an attack happens, then soon afterwards might be the cheapest bitcoin available causing a quick rush to buy in. I remember something similar happen when watching ETH in June 2017 when it was announced on Twitter that Vitalik Buterin had died and 10 minutes later he tweeted a photo of himself calling out the lie. ETH had flash crashed to 10 cents from about $300 and quickly rebounded.

Note that the top five addresses are all centralized exchange cold wallet addresses. One might want to watch these addresses for the tip-off should they suddenly move their cold storage to header on chain addresses. Hard to keep a secret like this for long (if your theory is correct).

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