Gavin Andresen publishes his theory of a possible crypto future
Gavin Andresen, a former Bitcoin engineer, released an interesting blog post on September 21 regarding “a potential [Bitcoin] future.” The blog article describes a hypothetical scenario for the Bitcoin network in 2061, in which most [bitcoin] transactions take place outside of the Bitcoin network.
A Look at $6 Million Dollars per Bitcoin in 2061 from a Theoretical Perspective
Gavin Andresen was regarded as the software’s principal maintainer for a few years following Satoshi Nakamoto’s departure from Bitcoin in 2010 when Nakamoto left him the keys. Mike Hearn, a Bitcoin developer, claimed to have received an email from Satoshi in 2011 saying that the blockchain inventor had “gone on to other things,” but added, “It’s in excellent hands with Gavin and everyone.” Andresen, on the other hand, is no longer the principal maintainer and hasn’t worked on Bitcoin Core in years.
In January 2018, Andresen made a proposal titled “Storing the UTXO as a bit-vector” in which he addressed the Bitcoin Cash (BCH) network. Andresen recently expressed his thoughts in a blog post titled “It’s not about the tech (yet?)” after the Tornado mixing blog post. Then, on September 21, 2021, Andresen speaks about the Bitcoin (BTC) network once more.
In his most recent blog entry, Andresen says, “Imagine: it is the year 2061.” “The BTC price is six million US dollars, which is around a million dollars in 2021 because of inflation. Miners get paid 0.006103515625 BTC every block, plus around 5 BTC in transaction fees for 4,000 or so transactions ($7,500 per transaction). However, the majority of BTC transactions do not take place on the BTC network. “The majority of BTC is locked up in multi-signature outputs protected by multiparty computation and replicated on another chain as ‘wrapped’ tokens,” says Andresen. Stay updated with bitdenex news and blogs for the next updates.
‘The Possibility of Zero Bitcoin Circulating on the Bitcoin Network,’ by Andresen
Andresen’s idea might very well come true and wrapped or synthetic bitcoin (BTC) is already being utilized on other blockchains. According to Dune Analytics, 269,642 BTC has been leveraged using Ethereum across seven distinct projects. At the time of writing, the Wrapped Bitcoin (WBTC) project owns a total of 205,921 of those coins. Andresen continues his speculative article by claiming that the super whales will permanently control the network.
“These whales will keep the BTC network running forever,” argues Andresen. “They are the miners and transaction producers; they don’t care how high transaction fees go as long as they are paid the same amount. In the year 2100, the whales realize that the mining return is nearly nil, and the sluggish, costly, zero-privacy BTC network is seeing fewer and fewer transactions.
Are sidechains competitors or do they have the potential to help Bitcoin scale?
According to Andresen, about “20 million or so BTC” will flow on other blockchain networks. Andresen concludes at the end of his blog post, “Valuable because there is a finite amount of them and since BTC was the first scarce digital asset.” Surprisingly, the subject has been explored recently, but not necessarily as a result of Andresen’s blog article.
On September 24, for example, bitcoin analyst John Carvalho, often known as “bitcoinerrorlog,” said: “Good morning, sidechains compete with Bitcoin, not scale it.” (They don’t truly exist, either.)” Following up on his tweet, Carvalho had the following thoughts:
- The two-way peg’s initial concept and design were never realised.
- They should be referred to as anchorchains or something like.
- They’re similar to shitcoins in that they compete for transactions rather than serving as money.
- They are not Bitcoin users.