Bitcoin's New Governance Challenge

The Breakdown


All right, Friends, well, as it is Bitcoin conference week, I thought why not do an LRS all focused on Bitcoin. So today we have two essays both sort of grounded in the recent feast bikes and both really focused on what happens next and more specifically what sort of additional emphasis on layer twos we might need as a Bitcoin community. The first piece was written by coin desk Michael Casey and is called frogs, fevers and fees, Bitcoin's new governance challenge. Michael Wright's this is why we can't have nice things. Just when we thought we'd learned our lessons from the blow ups of FTX, three arrows capital, Celsius at all, meme coin fever strikes again. Crazy crypto casinos are back. People are making ridiculous gobs of money from tokens based on a frog image, while others stand to lose massively as a rational bidding takes hold. At this time, the fever is not only infecting greedy human minds, but messing with the functioning of the most valuable blockchain in the world. The ability to create tokens based on the new BRC 20 standard, which was enabled by Bitcoin's taproot upgrade, has fostered a variety of new Bitcoin based meme coins, many mimicking those released on other chains that have recently experienced wild price movements. This past week, for example, the Ethereum based Pepe coin rose almost 5 million %, then lost 50% off its highs. This follows the creation of the ordinals protocol, which gave rise to Bitcoin based data inscriptions that function as non fungible tokens. These use up a lot more data than a basic Bitcoin transaction, which means they're driving up Bitcoin fees. Bitcoin miners have lately been earning more from transaction fees than from their routine 6.25 Bitcoin block reward, and that means if you want to send a small amount of Bitcoin on chain, it won't be accepted or you'll have to pay a prohibitively exorbitant price for doing so. I can hear Elizabeth Warren's anti crypto army snickering. These crypto Bros are so obsessed with mooning into lambos, that they're destroying what they claim to be this technology's core purpose as a better form of money and value exchange.

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