Feb 7, 2022 | OPINION
Bitcoin's Game Theory: Solving the confusing outcome for cryptocurrency
Some financial experts described Bitcoin’s game theory like the Gutenberg press, aiming to checkmate “the State” by separating “the money” from it.
Bitcoin’s game theory has resurfaced due to the recent statement of the giant investment company, Fidelity.
Bitcoin has indeed received enormous criticisms. Despite that situation, it has the largest market cap and remains undefeated on the first spot in the crypto ranking.
Meanwhile, meme-based digital coins have gained recognition with the help of the crypto community on various social media platforms. Dogecoin has started as the meme-flavored joke coin yet the best proof when stating this matter. Doge even has a parody meme-coin, known as Shiba Inu.
Government and non-government organizations have been using Ethereum blockchain in implementing their projects. Solana, Algorand, and many more are also pursuing the same path.
Though this article discusses bitcoin’s game theory, it is still significant to other decentralized digital currencies.
What is bitcoin’s game theory?
Game theory is the same as a game of strategy, and chess is one of the illustrations of this. People who love to play chess understand that players’ strategic decisions will determine who wins and loses the game.
Some financial experts described Bitcoin’s game theory like the Gutenberg press. Since Johannes Gutenberg’s invention changed the world, it paved the way for anyone to access information.
Before Gutenberg invented the printing press around 1440, the Church was the main source of information and told people what to believe and learn. According to some financial analysts, “Gutenberg moved his chess piece to checkmate the Church.”
A contributor of Bitcoin Magazine mentioned how bitcoin follows Gutenberg’s strategic move. However, bitcoin is still aiming to checkmate “the State” by separating “the money” from it. This chess game has been going on for 12 years and counting.
The article “A Look At the Game Theory Of Bitcoin” named the opponent of Bitcoin as WMPPs stands as “World’s Most Powerful Players”—composed of governments, banks, and special interest groups.
Can WMPPs checkmate Bitcoin?
Cryptocurrency has made countermoves and shown resilience. Such a situation happened in 2021 when China implemented a total ban on crypto miners and any cryptocurrency-related activities. In response, the miners transferred to other crypto miner-friendly countries.
What will happen if all countries ban Bitcoin? Cryptocurrency will use the dark web; some crypto enthusiasts say banning is not the best strategic decision.
On the other hand, Fidelity mentioned, “The high-stakes game theory is at play which could result in further adoption.” There is a great possibility that other countries, central banks, and private companies would imitate El Salvador and Tesla this year.
Wall Street giant investment Fidelity analysts Chris Kulper and Jack Neureuter noted, “The countries that secure some bitcoin today will be better off competitively than their peers.”
“Even if other countries do not believe in the investment thesis or adoption of bitcoin, they will be forced to acquire some as a form of insurance,” the Fidelity analysts pointed out. “In other words, a small cost can be paid
See the original post on Wozinga.com.
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