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Bitcoin Governance

Bitcoin Governance

The article rebuts misconceptions about Bitcoin governance, asserting that miners—not developers—govern it. It emphasizes Bitcoin’s legality, efficiency, and immutable protocol, rejecting ideas like censorship resistance, UASF, and centralized developer control.

August 11, 2021 3 min read Financials
Bitcoin Governance

This article is a response to a paper on Bitcoin governance posted by Hossein Nabilou. There unfortunately are several misconceptions or misunderstandings in the paper that render it let’s say, misguiding.

  1. Governance by developer decree - BIP. The model of “governance by developer decree” BIP that was introduced by the BTC Core team is contrary to the original Bitcoin model where limits are determined by the competitive actions of the miners.
  2. Bitcoin is NOT censorship resistance, Satoshi Nakamoto never mentions that in the white paper or in his communications. There is no such thing as censorship resistance in bitcoin, just economic incentives, and law.
  3. There is no trade-off inefficiency in the original Bitcoin. The implementation of the original Bitcoin protocol is a very fast, efficient, secure, and cost-efficient global settlement system as well as a global data layer, today doing over 5000 transactions per second on main net.
  4. Bitcoin was designed to operate INSIDE the legal framework with an economic incentive. Not outside! Bitcoin’s predecessors such as Digicash and Liberty Dollar was taken down because they were illegal, not because they were centralized.
  5. Original Bitcoin is already today technically capable to compete with established payment infrastructures such as Visa, Mastercard.…

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