What is money? How did it come into existence? What is digital money? Why might we not want to use digital money? Why might we want to use digital money anyway? Would we want to trust a Central Bank when it comes to digital money and why exactly might we want to do without such a Central Bank? What are the choices and what are options? What are the advantages of cash? What are the disadvantages of cash? Do we want to go back to silver and gold or do we want to stick with cash? What determines the value of money? All these questions are addressed in the presentation below.
Suppose the world does want to use digital money anyway, then a timeline is needed, to see who made which transaction when, in order to avoid double transactions. With a network in which there is a central (hackable) server (such as that of a Central Bank) a timeline is easy to realize, but then you are dependent on the (all-determining) power of that Central Bank. In a decentralized network, where no single party is in control, you have to solve that problem by giving the timeless digital world an artificial timeline.
In the presentation below, Jack Mallers explains why proof of effort(proof of wok) is the only way to give a decentralized database a timeline in an inherently timeless digital world. The fact is that bits and bytes (ones and zeros on a computer or network) have no time. It simply doesn't exist. However, to prevent someone from making a payment twice, because it is unknown whether the amount has been spent before, you need a timeline. If that timeline does not exist in a distributed accounting system of a decentralized database, you have to artificially create that time illusion.
Bitcoin is the only digital form of money that does not run on a central server (such as that of a Central Bank), on which a distributed ledger is maintained (and updated after transactions), in which a timeline is created in a digital world that knows no time.
The alleged creator of Bitcoin, Satoshi Nakamoto, is said to have recognized this need for a timeline and devised a solution for it. He argued that the only way to create a timeline in a digital world (necessary to capture the chronology of transactions in the distributed ledger on the decentralized network) becomes possible by working with a system based on proof of effort(proof of work).
In my book Bitcoin the Noah's Ark I explain why I think Bitcoin is not an invention of Satoshi Nakamoto at all, but that Bitcoin actually dates back to Noah's time and that this time illusion has everything to do with the materialized digital world we perceive from consciousness. However, to properly understand Bitcoin, Jack Mallers' presentation is indeed very enlightening and let's put to rest the idea that Satoshi Nakamoto would not exist. His presentation is very easy to understand for any layman and that is why I have subtitled it for you in Dutch.
I recommend that you watch the presentation carefully and then read the book Bitcoin the Noah's Ark read. That will clear up any outstanding questions you might have about Bitcoin. So do it!
If you are happy with articles like these, please share them. If you are new to this website, sign up for the free newsletter. If you also want me to continue, please support my work and read the comments for additions and more.
3 Comments
Decentralized for sure.
ETF (the Blackkrock's via shadow companies.) on the other hand does have power by bringing about flash crashes. They dump their bitcoins en masse at times when it seems logical in the market as well, only to buy them back a while later, but this time with additional coins from levelers; the freshly boarded who suddenly see their assets reduced and dare not continue. This way they keep expanding their portfolios with more bitcoins. An additional advantage for Blackrock, for example, is that in this way they can acquire a lot of bitcoins as a fairly fluid and naturally developing event, without the game format being too obvious. Yes, bitcoin will soon go through the roof, but also: yes, this system is also manipulated to the max. So in this case it makes little difference to those who see through it and want to ride the rich wave of the world; just keep your coins and stay put.
Agreed. There is considerable (Larry Fink) manipulation going on!
The latest video from Simply Bitcoin shows what I think you have also said here, that Ethereum is a shitcoin.
James O'Keefe Exposes Ethereum | #ETHGate Goes Viral
[youtube https://www.youtube.com/watch?v=RPJDwW1so_s&w=1280&h=720%5D