>> Therefore the incentive to attack Bitcoin is only as big as your own Bitcoin holdings, not the value of the entire market cap.
That's not quite true though is it? They could certainly (for instance) block transactions and generally hold the whole thing to ransom.
You're right, it doesn't have the financial incentive that you could (for instance) steal coin, but you could potentially block all transactions that don't have a considerable fee, for you, or just break stuff. Motives to do that will become more pressing the higher value the network is to nation states.
That's not quite true though is it? They could certainly (for instance) block transactions and generally hold the whole thing to ransom.
You're right, it doesn't have the financial incentive that you could (for instance) steal coin, but you could potentially block all transactions that don't have a considerable fee, for you, or just break stuff. Motives to do that will become more pressing the higher value the network is to nation states.