What are the all the ways in which Bitcoin can fail?
2 potential ways that it can fail
- Miners cheat the system. There’s a research paper that says Bitcoin is NOT incentive-compatible. Incentive-compatibility means that the cost to be a bad actor or cheat the system is more expensive than to use the system fairly, therefore the incentives align and cheating won’t happen.
- Tether implodes. Tether might just seem like a digitized dollar but it’s a crypto “on-ramp” because many exchanges in the world don’t accept USD for making purchases of tokens. If people can’t park their money in Tether to buy into and out of Bitcoin, then Bitcoin could plummet.