{"id":71223,"date":"2026-04-16T07:51:24","date_gmt":"2026-04-16T07:51:24","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/scarcity-pump-or-monetary-suicide-the-radical-argument-against-bip-361-featured-bitcoin-news\/"},"modified":"2026-04-16T07:51:24","modified_gmt":"2026-04-16T07:51:24","slug":"scarcity-pump-or-monetary-suicide-the-radical-argument-against-bip-361-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/scarcity-pump-or-monetary-suicide-the-radical-argument-against-bip-361-featured-bitcoin-news\/","title":{"rendered":"Scarcity Pump or Monetary Suicide? The Radical Argument Against BIP-361 \u2013 Featured Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>BIP-361 aims to protect <span>bitcoin<\/span> from quantum computers, which McKinsey warns may emerge between 2027 and 2030.<\/li>\n<li>Frederic Fosco warns that freezing 35% of the supply would kill <span>bitcoin<\/span>\u2019s monetary premium and <span>gold<\/span> status.<\/li>\n<li>Developers now weigh opt-in BIP-360 tools to offer 100% user sovereignty instead of mandatory coin sunsets.<\/li>\n<\/ul>\n<h2>The Scarcity Myth<\/h2>\n<p>The <span>bitcoin<\/span> community is currently locked in an ideological battle over BIP-361, a controversial proposal designed to shield the network from the looming shadow of quantum computing. On the surface, the math seems compelling: As quantum hardware advances toward the ability to crack legacy Elliptic Curve Digital Signature Algorithm (ECDSA) signatures, the network must migrate to <a href=\"https:\/\/news.bitcoin.com\/bitcoin-developer-unveils-quantum-resistant-wallet-rescue-prototype\/\">quantum-resistant<\/a> cryptography or risk a \u201csilent drain\u201d of its most storied addresses.<\/p>\n<p>Critics, however, argue that the proposed cure\u2014a mandatory freeze of non-migrated coins\u2014is far more dangerous than the disease. At the heart of this debate lies a fundamental question: Is <span>bitcoin<\/span> a protocol of absolute property rights, or a system governed by the shifting consensus of its developers?<\/p>\n<p>Still, some proponents point to a silver lining: a massive supply shock. If the 30% to 35% of <span>bitcoin<\/span> currently sitting in dormant or lost legacy addresses were to be permanently locked away, the remaining circulating supply would become significantly scarcer. In the vacuum of a spreadsheet, this looks like a guaranteed \u201cscarcity pump.\u201d<\/p>\n<p>Frederic Fosco, co-founder of OP_NET, is not buying it. He views the scarcity argument as a psychological sleight of hand designed to mask a radical shift in <span>bitcoin<\/span>\u2019s social contract.<\/p>\n<p>\u201cThe scarcity pump framing is how you sell confiscation to people who should know better,\u201d Fosco argues. \u201cIf a government seized 6 million <span>BTC<\/span> tomorrow and threw away the keys, that would also be \u2018 <span>bullish<\/span> for scarcity.\u2019 Nobody would celebrate it, because the mechanism matters more than the math.\u201d<\/p>\n<p>The real danger, according to skeptics, is not the technical difficulty of quantum computing but the destruction of <span>bitcoin<\/span>\u2019s monetary premium. <span>Bitcoin<\/span> currently trades at a premium specifically because it is perceived as unstoppable money. If that immutability is compromised\u2014even for the \u201cnoble\u201d cause of security, as BIP-361 supporters frame it\u2014the market\u2019s perception of the asset could fundamentally shift.<\/p>\n<p>Fosco warns that the consequences of such a move are currently being undermodeled by the market. The day the <span>bitcoin<\/span> network proves it can or will freeze wallets is the day it ceases to be \u201cdigital <span>gold<\/span>\u201d in the eyes of institutional and sovereign holders.<\/p>\n<p>\u201cThe consequence nobody is modeling is the monetary premium collapse,\u201d Fosco says. \u201c <span>Bitcoin<\/span> trades where it does because the market believes the rules are immutable and property rights are absolute. The day <span>bitcoin<\/span> proves it will confiscate coins under sufficiently compelling circumstances, you haven\u2019t made it scarcer; you\u2019ve made it a different asset. One with a governance layer.\u201d<\/p>\n<h2>Sovereignty Over Safety<\/h2>\n<p>Fosco suggests that the solution already exists in the form of opt-in technology. Protocols like BIP-360 and post-quantum signature schemes like ML-DSA offer a path forward that preserves user choice.<\/p>\n<p>In this view, the role of developers is to provide the armor, not to force the soldiers to wear it. If a holder chooses to remain in a legacy address despite the availability of quantum-resistant alternatives, they are exercising their right to take a personal risk\u2014a cornerstone of the \u201csovereign individual\u201d philosophy.<\/p>\n<p>\u201cStop trying to save people from themselves through consensus rules,\u201d Fosco insists. \u201cQuantum-resistant solutions exist right now. \u2026 Ship opt-in post-quantum address types, educate holders, build better wallets, make migration the obvious path. But never make someone\u2019s <span>bitcoin<\/span> unspendable because they didn\u2019t upgrade on your schedule.\u201d<\/p>\n<p>The fear is that once the line is crossed for quantum security, the precedent for coin freezing becomes an open door for traditional forms of financial censorship. If the protocol can be altered to freeze \u201cat-risk\u201d coins, it can be altered to freeze \u201csanctioned\u201d or \u201cpolitically incorrect\u201d coins.<\/p>\n<p>\u201cIf quantum breaks ECDSA tomorrow, the holders who didn\u2019t migrate bear that risk. That\u2019s their sovereign choice. <span>Bitcoin<\/span>\u2019s job is to offer the tools, not enforce their use,\u201d Fosco warns. \u201cCross that line and you\u2019ve built a system that can freeze any coins for any reason deemed important enough. Today it\u2019s quantum. Tomorrow it\u2019s sanctions or dormancy taxes. Same principle.\u201d<\/p>\n<h2>A Binary Choice<\/h2>\n<p>The BIP-361 debate highlights a growing rift in the digital <span>gold<\/span> narrative. If <span>bitcoin<\/span> adopts a governance layer capable of invalidating unspent transaction outputs ( <span>UTXOs<\/span>) based on their age or technical status, it moves closer to the world of traditional finance, where \u201cedge cases\u201d allow for the freezing of assets.<\/p>\n<p>As the industry stares down the 2027\u20132030 window for <a href=\"https:\/\/news.bitcoin.com\/googles-quantum-advances-bring-bitcoin-security-debate-into-focus\/\">quantum relevance<\/a>, the community faces a binary choice. As Fosco bluntly puts it:<\/p>\n<p>\u201cAny short-term supply-shock rally gets dwarfed by the long-term repricing of what <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> actually is. You don\u2019t get to be digital <a href=\"http:\/\/www.bitcoin.com\/get-started\/bitcoin-vs-gold\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">gold<\/a> and a system that freezes dormant wallets. Pick one.\u201d<\/p>\n<p>While the threat of a covert quantum attack is a legitimate technical concern, the debate has revealed that <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a>\u2019s greatest security feature isn\u2019t just its code\u2014it\u2019s its predictability. If the cost of quantum resistance is the death of \u201cnot your keys, not your coins,\u201d many believe the price is simply too high to pay.<\/p>\n<p>The battle for <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a>\u2019s future will not just be fought in the laboratories of quantum researchers, but in the minds of the holders who must decide if they value the math of scarcity over the sanctity of the rules.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/scarcity-pump-or-monetary-suicide-the-radical-argument-against-bip-361\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: BIP-361 aims to protect bitcoin from quantum computers, which McKinsey warns may emerge between 2027 and 2030. Frederic Fosco warns that freezing 35% of the supply would kill bitcoin\u2019s monetary premium and gold status. Developers now weigh opt-in BIP-360 tools to offer 100% user sovereignty instead [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":71224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71223"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=71223"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/71224"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=71223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=71223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=71223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}