This will increase scarcity and cause the price to skyrocket.
Disappearing BTC will indeed increase scarcity, but it will not increase value because there will be no demand.
I appreciate the “tough” (actually easy for me) questions and probing for possible weaknesses in my logic.
“Going For The Gold” Valuation Model
The miners will need demand for legacy Bitcoins while the taking of the SegWit as donations to themselves is ongoing, so that they have a market to sell the “tainted” Bitcoins into (noting these won’t be frozen by some FATF directive until presumably later when miners are no longer hodling the rotten SegWit lineage eggs), so that the legacy fork will win against Core thus restoring the immutability of Bitcoin which is required for it to have any value at all.
Remember I had explained that a mutable protocol with multifarious forking (i.e. multifurcated) shitcoin has no scarcity. This is why Bitcoin hard forks are always sold off, because the Schelling point and Nash equilibrium is to rally around selling the fork-off (aka fuck-off) and using proceeds to buy the immutable original.
I explained in my blog Secrets of Bitcoin’s Dystopian Valuation Model that the price of Bitcoin is driven by cost of mining and the cumulative proof-of-work stored (not sunk costs but) as the mutual confidence of the wealth stored in it protected by a Schelling point and Nash equilibrium which disallows fragmentation of that wealth and confidence over numerous competing forks (aka Nick Szabo’s “unforgeable costliness”), not by some supply versus demand curve model. Bitcoin is a monetary phenomenon, not a good or service. IOW, the value of a monetary instrument drives the demand as PlanB’s stock-to-flows model seems to indicate, because the marginal utility of perfect money does not diminish no matter how much of it you have. We must apply the correct economic theory or we will not understand Bitcoin at all.
Massive Acceleration of Mining Rewards/Costs
This is the underlying reason for the acceleration in the Bitcoin price. So we will have a shrinking money supply yet the cost of past mining production does not decrease and ongoing production costs will drastically increase as the miners are stampeding to mine legacy to partake of the SegWit “anyone can spend” booty. This is why I was writing to you in a comment reply on my preceding blog that I have expert information which corroborates the imminent $1+ million price for Bitcoin in 2020! I was not being arrogant, nor puffed up with illogical hubris. I would not be all that surprised if Bitcoin hits $5 million in 2021 before this crazy chaos is finished. Remember in a recent discussion thread with you, I coined the aphorism “information is a hedge against chaos”.
Democratic Collectivized Socialism vs. Libertarian Free Market Capitalism
Shall we all tie our shoelaces together or do ya think maybe we should go for freedom instead? Adherence to biblical 1 Samuel 8 or idoling large scale governance ruled by king pins behind the veil?
Who the hell would want coins with those attributes?
Everyone who correctly understands monetary and political-economic theory. Of course all the witless would instead prefer to fall into the woodchipper of delusions about democracy, fairness, etc.. Diversity of beliefs is not a Schelling point. Reality versus fiction. Choose. Production versus destruction respectively. Production adds value, destruction destroys value. Forcing Core to fuck-off is production and adding value, not destruction. Only witless fools who did not apply careful attention and due diligence to what they were doing are destroyed during production. Analogous to sticking one’s hand into the blade at the saw mill.
So on the one hand, Bitcoin represents the side of reason and free market capitalism. But there’s a twist! If Craig’s vision of sufficiently centralized Bitcoin mining is the reality wherein Bitcoin’s permissionless trustlessness is gradually eroded and turned over to a supranational geopolitics, then implicitly Bitcoin is compatible with globally managed, collectivized socialism in the form of a creeping, implicit totalitarian supranational “fascism” (c.f. also and also) wherein the nations are slaves to the global elite and multinationals as predicted by the 10 Kings in Revelation. So appears to me those who created Bitcoin may have masterminded their preordained destiny in a world domination plan.
Is Bitcoin perfect money? If the lack of reliable, untraceable, unlinkable anonymity causes it to lose fungibility and the proof-of-work mining being sufficiently centralized into huge mining farms, that hypothetically may enable the FATF to dictate to miners which Bitcoins are permissionless and which are frozen or confiscated, then I would argue/posit that Bitcoin’s value is no longer exogenous to the power of governments and thus does not entirely fulfill the aims of John Nash’s Ideal Money concept.
Craig Wright asserts/posits that the FATF actions will be limited in scope to crimes serious and global enough to motivate the cooperation of many/most/all nations and thus not allowing any individual nation to influence Bitcoin’s value. Excuse me if I’m skeptical of his assurances:
IOW, Bitcoin fails to have all the permissionless and trustless medium-of-exchange properties that physical cash had (because of course governments hate cash). And the 666 Libra plan will not be permissionless cash either. So there’s still a huge hole in the market that needs to be fulfilled by a permissionless cryptocurrency that isn’t dominated by mining farms. I wonder who might know how to make such a thing? Maybe this little bird on my window sill, who I nicknamed 
So everyone who wants or is dependent on the system of creeping or lurches to government totalitarianism (e.g. Andrew Yang’s proposal for universal basic income or any form of social justice warrior redistribution of private property to the collective) will be implicitly (and explicitly unwittingly via for example stablecoins such as Libra) in support of Bitcoin as the perfect reserve unit-of-account for aiding the implementation of totalitarianism. Bitcoin is compatible with empowering of hordes of entitled zombies who demand free education, free healthcare, free transportation, free housing, etc as a basic right of all humans (demands which will of course impoverish and enslave them exactly as 1 Samuel 8 warns, sigh).
IOW, Bitcoin is fully compatible with Satan’s political and economic system which the Lord warned about in 1 Samuel 8:
6 But when they said, “Give us a king to lead us,” this displeased Samuel; so he prayed to the Lord. 7 And the Lord told him: “Listen to all that the people are saying to you; it is not you they have rejected, but they have rejected me as their king. 8 As they have done from the day I brought them up out of Egypt until this day, forsaking me and serving other gods, so they are doing to you. 9 Now listen to them; but warn them solemnly and let them know what the king who will reign over them will claim as his rights.”
The rest of us need an alternative to the 666 Libra+Bitcoin:
“Then saith he [Jesus] unto them, Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's” — Matthew 22:21.
Romans was written by the apostle Paul who Jesus predicted would come as a wolf in sheepskin and deceptively teach the opposite of what Jesus and the natural (aka Biblical) law said. In my recent blog Trillionaire Fund Manager Martin Armstrong Was Framed By Our Corrupt Government I documented that there is no sane rule-of-law under Satan’s political system. Rome stood for 1000 years because taxes were only 3%, no income tax, and most crimes such as murder were only adjudicated by private citizens not courts and government. Virtually all of the Christian churches are corrupted. We need those who teach Jesus’ Words Only, which for example does not allow using the government to enforce morality! Nearly all of the so called religious fundamentalists subscribe to Satan’s political and economic system.
It’s time to roll up our sleeves gentlemen and get to work. On many things... don’t let Satan divide-and-conquer us.
Following video explains our natural right to bear arms for self-defense and churches which accept tax free status are subservient to the government. Video is very inspiring (especially for me as a descendant of Isaac Shelby) (c.f. also) relating how we massacred the British tyrants! Highly rewarding from 55 – 60 minutes.
RE: Our Bitcoins Will Be Taken/Frozen By the Miners; Involuntary INCOME Tax on Frozen Bitcoin!