| submitted by /u/DiligentSyrup
Why Bitcoin does not need to be spent
The world has approximately $ 700-800T in non-derivative assets. This includes real estate, equities, bonds, commodities, cash, and all the bits of stuff people use in their daily lives. The majority of those assets are not used as a payment method.
Take a look at this classic (yet flawed) infographic: https://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18
Cash, as in the type you can hold in your hand, makes up about $ 8T
Cash, as in the type you keep in a bank account, makes up about $ 90T
That means 6 out of 7 of the world's assets are not used as a unit of account or payment method. If you consider your own assets, you will probably find a similar ratio of cash-to-other-stuff (investments, real estate, cars). In other words, 6 out of 7 units of value in the world have their value from something other than their ability to be a unit of account or be used as payment.
In order to have a large inherent value, bitcoin need only have a niche of a niche of the utility of any of the asset classes listed in that infographic. If Bitcoin can replace a small fraction of the utility of cash, gold, equities, debt, or derivatives, it will have trillions of dollars in value. It just so happens that Bitcoin and other cryptocurrencies compete in all of these asset markets. Are they better than existing assets? For certain use cases, definitely. For all use cases? Probably not. Being useful in certain use cases is enough in a mature market to justify a value for Bitcoin many times what it is.
Why Bitcoin's largest value is hodling
I bought a gold coin with my bitcoin recently, and while holding the coin, I took another coin of local currency of almost the exact same size and compared the gold coin and the currency coin. It dawned on me that both were shiny metal, and to a child would be equivalent, but it would take over 4,000 copies of the currency coin to hold the same amount of value as the gold coin.
If you reflect on this, you can see that a primary value of gold is that it is a compact and efficient way to store non-inflationary value. In this regard, Bitcoin is far more efficient. Bitcoin has no weight and is more difficult to lose or steal.
Gold justifies an $ 8T market cap, and most gold is hedl by governments in their reserves. These reserves store gold as opposed to tin or iron or oil because it is more efficient to store and transport gold than anything else physical. In this regard, if Bitcoin replaced even a fraction of world reserves, it would justify a few trillion dollars.
Furthermore, bitcoin is far more liquid than gold. If I would like to sell my gold coin right now, I will guarantee a loss because there is a spread of approximately 10%-20%. This is because shipping and storage of physical gold costs money for traders. With bitcoin, the spread can be as little as 0.01%, which is an indicator of its high liquidity.
With potentially better properties for hodling than gold and cash-like liquidity, Bitcoin is more like a savings account than gold or physical cash. If Bitcoin is truly better than a normal savings account, which I believe it is, it is likely that Bitcoin and crypto can justify $ 20T-50T market caps. In a mature market many years away, that's 100-200x current values without much usage as a payment method or unit of account.
To sum it up, it is great that Bitcoin is useful in so many ways, but don't discount what Bitcoin is best at: saving! There is a lot of demand for savings accounts in the world. Even governments need to save! Maybe one day in a few years a small government will open a savings account in Bitcoin. 🙂
For years, bitcoin's enablers have promoted the delightful notion that you can conjure your own money out of thin air. They've shielded that rather …
Google Alert – bitcoin
Tinfoil hat time. Sites like cryptograffiti.info and proofofexistence.com allow anyone to imbed data (encrypted or not) on the blockchain. That data is provably timestamped and will remain on the blockchain as long as there is one. Consider this scenario:
An encrypted piece of blockchain data from 2014 is discovered to perfectly match the hash of the 2016 election results.
That's just one example. It could be weather data, stock data, or any unpredictable info. If time travel is possible, the blockchain seems like the only way to prove it in a way that would be indisputable. If nothing else, this makes for a cool sci-fi plot.
Has there been a SETI-like project to search for information on the blockchain that came from the future?
is this the smoking gun and final proof?: https://www.reddit.com/r/Bitcoin/comments/63yo27/some_circumstantial_evidence_supporting_the_claim/dfy5o65/?utm_content=permalink&utm_medium=front&utm_source=reddit&utm_name=Bitcoin
can someone verify this?
A short list of the evidence I was able to quickly put together:
Existence of ASICBOOST was just confirmed by Bitmain them self. "Our ASIC chips, like those of some other manufacturers, have a circuit design that supports ASICBOOST" – It's very costly to develop and even costlier to put it in every single ASIC. It makes no sense whatsoever if you're not intending to use it.
"Bitmain has tested ASICBOOST on the Testnet but has never used ASICBOOST on the mainnet" (Source) _ For what reason was it tested on testnet if not for actual use?
"Bitmain holds the ASICBOOST patent in China. We can legally use it in our own mining farms in China to profit from it and sell the cloud mining contracts to the public. This, however profitable, is not something we would do for the greater good of Bitcoin." _ Literally every single piece of evidence we have directly contradicts this. Words are cheap…
https://twitter.com/AaronvanW/status/850060132264407041 (Jihan indirectly confirms that they are using ASICBOOST on weibo)
https://twitter.com/CollinCrypto/status/849802945294217217 (Jihan indirectly confirms that they are using it on twitter, then deletes tweets)
Empty blocks indicate use of ASICBOOST. Antpool is mining lots of empty blocks
Weird transaction shuffling is necessary for ASICBOOST. Bitmain engages in weird transaction shuffling: https://twitter.com/ElectrumWallet/status/849974808259559425 https://twitter.com/ElectrumWallet/status/850195695302696960
someone actually found the stratum command used to activate ASICBOOST on antminers pointed to Antpool some 9 months ago: https://archive.fo/Ok3SJ
segwit (unintentionally) breaks the covert form of ASCIBOOST. Bitmain oposes segwit.
SegWit2MB, BU and Extension Blocks does not break covert ASICBOOST. Bitmain supports all of those proposals.
Greg's fix blocks only covert ASICBOOST – it does literally nothing else. ANY miner not using covert ASICBOOST profits from such a fix since it prevents the competition from secretly using it. Bitmain opposes the fix.
"We have tried to calculate the amount of money that the Chinese have invested in mining, we estimate it to be in the hundreds of millions of dollars. Even with free electricity we cannot see how they will ever get this money back. Either they don’t know what they are doing, but that is not very likely at this scale or they have some secret advantage that we don’t know about." – Sam Cole, KNC CEO
This is anything but exhaustive. Feel free to provide more.
ah, another piece of useful information:
(explanations why ASICBOOST is an attack and NOT an optimization)
In case you were wondering whether Bitcoin Unlimited proponents were paid by Roger Ver to support his opinion, here is some primary source evidence. Note that a BUIP (Bitcoin Unlimited Improvement Proposal), unlike a BIP (Bitcoin Improvement Proposal), has in many instances become a request for funding from Roger Ver for all matter of things that are not protocol related. Here are some concrete examples:
BUIP-025 – Roger funded $ 1,000 (less balance of donations, amount undisclosed), to represent BU interests in Milan, Italy conference:
BUIP-027 – Roger funded at least $ 20,000 to advance his agenda in response to this proposal:
BUIP-035 – A request for $ 35,000 to revamp the bitcoin.com website. (status = "??")
BUIP-47 – A request for $ 40,000 to host a new conference and advance BU agendas. (status = "??")
Perhaps this pollution of BUIP is why the only one listed on their website is BUIP-001: https://www.bitcoinunlimited.info/buip
Please ask yourself: why would they hide the other BUIPs deep within their git repository instead of advertising them on their website (hint: many of them have nothing to do with improving the protocol or implementation.)
Richard Feynman warned against any organization that served primarily to bestow the honor of membership upon others. [https://youtu.be/Dkv0KCR3Yiw?t=149] The following BUIP's do nothing but elect those honors: BUIP-3, BUIP-7, BUIP-8, BUIP-11, BUIP-12, BUIP-19, BUIP-28, BUIP-29, BUIP-31, BUIP-32, BUIP-36, BUIP-42, BUIP-58.
Please, by all means, peruse the Bitcoin Unlimited "Improvement" Proposals here: https://github.com/BitcoinUnlimited/BUIP/ , and review them in character and substance to the BIP's here: https://github.com/bitcoin/bips/blob/master/README.mediawiki
It's unfair to judge an opinion by the shills that support it, but it is absolutely fair to judge an organization by it's willingness to fund shills.
PS – This is NOT a throwaway account. This account spans most of Bitcoin's existence.