Bitcoin has no competition – Bitcoin Magazine: Bitcoin News, Articles, Charts and Guides

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Language versus control

The language of Bitcoin: 5

TL; DR – A myriad of currency tricks are revealed to the general public thanks to the scrutiny that Bitcoin incites. From the start, most of us couldn’t see the woods for the trees. For many, Bitcoin’s straightforward technology has helped explain the extremely convoluted machinations of fiat, which were so pervasive that they have allowed generations of humans to effectively monitor the currency landscape closely. Bitcoin is another lens, a constant measure, through which to view the world. Meanwhile, many are misled about the state of affairs due to the all-consuming influence of inflationary credit expansion, which has a telescoping effect on the financial world.

Function

Through its proof-of-work mining, the digital world of Bitcoin’s infinite scarcity is grafted onto the physical world. Such a link between these two areas had not previously been achieved with a distributed system. Bitcoin has the additional magical property that it can be transported through any communication channel, for an almost insignificant price that only serves to transparently protect its value and encourage cooperation among participants in its network.

There is an insidious misconception, or a popular misconception, that many competing items in this world are rare.

There is only Bitcoin, and it is geographically independent, politically deaf, and beyond the control of a single entity. Additionally, its perceived value, which stems from its infinite terminal scarcity, can be transferred to and from anyone, anywhere on the planet, at any time.

This is in part what separates Bitcoin from all other cryptocurrencies. It is not difficult to invent circumstances, or to imagine what might be the case. Altcoins are just an exercise in this area, they belong to the realm of ideas. Ideas alone will not bring change. Altcoins, NFT, de-fi, all this noise only exists in the realm of ideas. In the real world, Bitcoin is the simplest and most convenient technology that encompasses and eclipses centralized proof-of-stake technologies, all of which are more or less alike from a decentralized technology perspective.

Aftermarket parts are nothing but iterations of fiat, bringing nothing to the market other than special niche technical languages ​​that are actually technobabble gibberish that are used to entertain. Altcoins come from Bitcoin, direct copies and failed permutations. They also depend on it.

Bitcoin has solved the dreaded problem of associating events with time points in distributed systems. It should be pointed out that Satoshi failed to make the information non-copyable. If you have access to the information, you can also copy it perfectly. Centralized systems attempt to obscure and control knowledge by actively avoiding and discouraging people from learning how to do it.

All information, including that associated with your Bitcoin private keys can be copied. This understanding is central to learning how to use Bitcoin and protecting your privacy. Duplication is an inexorable feature of information.

It is a blessing and a curse. This law is what makes good and bad ideas reckless and intractable. It is also what makes patents and copyright a perpetual and losing battle, which only persists by force.

It should be noted that the inability to associate events with time points in distributed systems was an unresolved issue before Bitcoin. Solutions like Bitcoin can be singular, but cannot be made unique, because all information is copiable, alternative cryptocurrencies will always exist.

It is highly unlikely that the set of conditions that led to the successful launch and seed of the Bitcoin economy will repeat in our lifetime with a currency capable of doing everything Bitcoin does, and more.

Bitcoin as a solution cannot be put back in the bottle, and it cannot remain a niche. Alternative cryptocurrencies will persist, but pale in comparison to the success of Bitcoin, as they are and will remain centralized and ultimately subject to the whims of one person, or a small group, or even a large group of people. .

Apolitical

Bitcoin is apolitical money. It’s a trait that separates it from all the other strengths.

You could say that we won’t find a solution to all the political problems of crypto, however, as Satoshi Nakamoto pointed out, “we can win a major battle in the arms race and gain new territory of freedom for several. years “. And we have and probably will continue to enjoy the opportunity to have the freedom and property that Satoshi has provided.

Many believe that this freedom results from competition between various cryptocurrencies. It is a mistake. For what it does, Bitcoin has no competition. It is without equal.

In the long history of the monetary mandate, censorship and oppression, all living had ideas. Bitcoin provided a simple and actionable solution. Tamper-proof, unstoppable, non-confiscable, ordered and stored transactions on a distributed network.

As long as the honest nodes control the most CPU power on the network, they can generate the longest chain and overtake all attackers, and we can store and transmit properties, value and therefore uncensored free speech. in space and time.

The only requirement is that the good guys collectively have more CPU power than any attacker. For more than a decade, this has been the case.

Bitcoin gives you the freedom to acquire and control ownership. This is a unique form of property. Bitcoin is freedom. It is unique in this regard. You can actually make your freedom your own through Bitcoin. This is what it means to use Bitcoin.

The problem with fiat is that its rules are always incompletely explained. There is an exposed degree of randomness over all forms of alternative cryptocurrencies and fiat, as they have introduced a large amount of human governance and dictating into the system.

Humans are not maximally efficient at controlling themselves, as they are subject to the fallacy of infinite regression. Who monitors the observers? etc.

This admits a question: how is governance defined? In Bitcoin, you have the ability to run older versions of Bitcoin, and the freedom to do whatever you want with your Bitcoin, without being kicked from the network. Our updates are approved by majority and adopted individually at will. Bitcoin is backwards compatible. And the burden of choosing who or what to transact with rests solely on the owner of the unspent transactions.

There is no limitation imposed by the rules of the fiduciary game. They do not play with a definite supply of numbers but rather with a system of building numbers indefinitely.

The trust game was built on the premise that the higher number, positive or negative, takes the turn. The problem is, the rules of this game have been abused to the point where it has generally become difficult for the general population to understand how the game works. In fiat, what is money and what is not?

In fiat, you play three-card tricks with the Fed, which offers the illusion of security, entertainment, and instant gratification (if you play right), in return for the perpetual degradation of your wealth.

Instead of making this false promise, Bitcoin simply gives you the certainty of how much property you own now and in the next. Bitcoin is owned in a leased world.

We are therefore quietly accumulating Bitcoin. Bitcoiners understand that only a permanently closed supply will maintain long-term value and increase in value when valued against all other non-rare assets.

In fiat, you are constantly paying an unauthorized convenience tax in the form of monetary debasement in addition to outright taxes paid to fund wars and the institutions that enforce the fiat network. Bitcoiners understand that any amount of money will give up its value ad infinitum when its supply is unlimited.

As a society, we have become accustomed not to a definite supply of monetary figures, but to a system of building money indefinitely.

All other monetary systems allow people to decide at every moment how fast to continue printing money and when to tighten, but it will never stop, there is no incentive to do so. History has shown that governments cannot resist the temptation to depreciate a society’s currency in order to get richer.

Time

Bitcoin is a closed monetary enumeration that takes into account the asynchronous communication inherent in any decentralized system.

Synchronous events do not exist. Everything happens in plenty of its own time. From the perspective of a centralized system, with a single line of sight, this does not appear to be the case. There is a sobering parallax effect when visualizing the currency landscape through Bitcoin’s decentralized system.

But information, and even Bitcoin, cannot directly represent the state of the world. And Bitcoin does not claim to do so. The state of affairs is not and never has been as no government tells you.

The Bitcoin blockchain is just a description of time in larger and smaller systems, orthogonal systems. All other cryptocurrencies have omitted the essential decentralized feature of such a description of time and try to mask it with ancillary features.

There is a plethora of monetary experiences revealed to us by the scrutiny that Bitcoin induces, which were previously hidden or hidden from view. One of them is the understanding of our time as an asset that we must constantly exchange. Time is not money. But time, like Bitcoin, is scarce.

September 12, 2021

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