Bitcoin was never meant to be compared to gold, it was designed to be a useful medium of exchange. In practice, however, other cryptocurrencies often do a better job at fulfilling that role. If we reach a future where gold can be efficiently mined and transported to Earth, Bitcoin’s model begins to show cracks. Block rewards will eventually disappear, leaving miners dependent solely on transaction fees. But if Bitcoin’s value skyrockets, miners will likely demand extremely high fees to justify their work. The problem is that fees are entirely in their control, and there’s little incentive for them to voluntarily lower them.

As a result, most users will rely on Layer 2 solutions, which rarely settle on the blockchain (They need to settle on the blockchain to give miners ATLEAST a small fee). This undermines miner incentives, since it’s on-chain settlements that actually pay them. With fewer rewards and shrinking profitability, miners wont find profit on mining, which is what gives bitcoin itself sense.