Energy in Cyberspace
Bitcoin = Energy⚡️ in Cyberspace/ Digital gold/ Inflation escape hatch
When I began buying bitcoin in 2020, I recognized the fundamentally flawed unsustainable nature of the USD’s debt-based economic model, acknowledging the history of fiat currencies in relation to monetary debasement.
I wasn’t into trading it but rather saving in it because I viewed it as a superior hard asset.
To me the most beautiful part of bitcoin is its decentralized nature which gives individuals sovereign control over their money.
It circumvents third party centralization by cutting out the middle man (banks).
Bitcoin is math-based open-source peer-to-peer monetary network that allows individuals to exchange a unit of value (“sats”) instantly and globally.
The networks code only allows for a fixed supply of 21 million Bitcoins solving the inflation issue.
Critics talk about its volatility but it has recorded a 100+% average yearly price increase since its inception in 2008.
On that note we’ve recently witnessed more volatility in the 10-YR Treasury Yield curve which is supposed to remain stable as it serves as the ultimate global form of collateral upon which the entire financial system is constructed.
Qualities
Durable: The proof-of-work (PoW) consensus algorithm ensures the networks resilience. It’s auditable & decentralized meaning there is no central authority like the Federal Reserve or ECB.
Portable: transactions are cheaply & instantly sent person-to-person anywhere in the world w no need for intermediaries. Whips the USD & precious metals in this category since it would take considerably longer to wire currency through a bank & traveling w precious metals is difficult.
Divisible: it’s divided into individual units called “sats” or “Satoshis”
1 Bitcoin = 100,000,000 sats, making it divisible & allowing for small transactions suitable for everyday use.
Uniform: The network code ensures that each “sat” is identical and interchangeable, w no differences in quality/value.
Scarce Supply: The network code only allows for a total fixed supply of 21 million Bitcoin, preventing inflation, providing scarcity & store of value.
Acceptable: Its not universally accepted as legal tender or a medium of exchange, yet, but its adoption is increasing significantly.
Transactions and Blocks
Transactions are the lifeblood of the system, representing the movement of energy/value amongst Bitcoiners. These transactions are grouped into blocks, forming the blockchain – an immutable ledger that records every transaction in the system.
Miners: The Architects of Security.
Miners compete to solve a complex mathematical puzzle, known as a “hash function,” to validate a block of transactions, known as the process of “mining”. They validate the transactions, and provide security for the network.
Nodes: The Watchful Guardians.
Nodes maintain copies of the entire blockchain ledger and verify the authenticity of transactions to reach consensus on the state of the network, ensuring its transparency and resilience.
Read more in Satoshi Nakamoto’s White Paper.
https://river.com/learn/bitcoin.pdf
I buy mine w Swan Bitcoin bc they have low fees & since they are the OG’s in the space w the most expert customer guidance.
http://swanbitcoin.com/Jesse-Kostbade
Buy Beef with Bitcoin!
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