Sander duivestein bitcoin price
Alan Greenspan, the former president of the Federal Reserve, was baffled by the digital currency: Maybe somebody else can. Nowadays the financial world is reconsidering their opinion about Bitcoin.
In february the Bank refined their opinion: In an interview with Wall Street Journal he said: That is my personal prediction. Banks are now extremely worried that they are facing their own Napster moment. The moment that the rise of a new platform disseminates a complete industry by offering a simplified experience in a cheaper way and at a scale that makes it impossible to compete with.
The media industry just let it happen. Incapable of changing their own DNA and culture to adjust to these new technologies. They followed the Shirky Principle: All kinds of applications are now built on top of the Bitcoin blockchain.
Smartphone apps that will make the underlying complexity invisible to the end users. In the near future transferring money and property will be as easy as swiping your finger from left to right. But I think the reason is that most explanations out there are either: I think there is still a lot of room in between. Your attempt to boil this down to a few sentences is a good one and would give someone new to Bitcoin a good sense of what it is.
But I think there is one more level down, that gets to some of the innards of how it works, but without the technical details. This is what I attempted here: The scarcity attribute adds a profound foundation to the belief system supporting BitCoin as a digital currency.
This reflects the choice of Gold for early physical coins: You have done well to distill the essence of BitCoin into such brief terms. Tip hat towards Rashik Parmar. The designed mesh of attributes has estalished a financial resource on which to support a shared trust system.
The sarcity granting trusted uniqueness , the ledger transparent information yet anonymous provenance , the mechanism of direct transfer no central authority nor clearing house.
I struggled with the last one and I was worried that it might not be a true layer…. I think you can understand something without being able to explain it. These are two very different skills. It sounds like you want to include both and have made a step towards it. I think that means its the application of an invention to achieve a payment network?
You refer to it as a system. Bitcoin sounds like a really bad name. Is it the coin or the system around the coin or the concensus network around the system around the coin or the impact of the network….. Well you can read my thoughts on this here http: Richard, again an eye opening post. I use the mataphore of the apple in my talks as well. The core for Bitcoin is different for different people. But you better believe that the young will get it. It is available in eBook form from their website- http: It was fairly successful — some big founders in SV tweeted it out etc.
Btw, big fan of your posts. Cheers and keep em coming! Bitcoins, the currency may be scarce, but bitcoin the protocol is infinite. For now, the bitcoin protocol is dependent on the value of fiat currencies that also have no intrinsic value other than government force and the perceived value of Bitcoins, a digital fiat cryptocurrency.
You cannot perform a use the bitcoin protocol without having the Bitcoin fiat currency. However, the protocol can be copied infinitely Litecoin, Peercoin, Dogecoin, etc. That means that the currency is theoretically infinite. Therefore, no intrinsic value.
Digital Scarcity is the essence of Bitcoin and all other crypto currencies. So Bitcoin is not the first implementation of digital scarcity. But, for the first time, cryptocurrencies like Bitcoin make the concept feasible on an Internet scale. Two years ago, with my old and now quite defunct company, we dabbled around scarcity concepts for music and other media.
We used a stock market metaphor with a centralized SQL db at its core to introduce a native digital scarcity into the system. And we realized pretty early: Stupid us looked at Bitcoin, and saw just a strange currency concept. Digital scarcity works, I guess, because understanding and fearing and leveraging … the impact of real world scarcities is a concept hardwired into us humans. In this context, the grand Bitcoin experiment should be a boon for all behavioral economists: Anybody can create a functional wiki-site.
THE Wikipedia is scarce. Likewise, the protocol can be copied, but the network around it cannot. What makes Bitcoin rare is the infrastructure being built specifically around it and for it. Yes, Bitcoin is at its core, and most distinctively, about digitally simulating scarcity — that seems the gist that you have valuably emphasised in previous posts.
But people should then be asking: The underlying purpose here is not or should not be to simulate money, it is to make systems for economic interaction. What is there in allocating supply and demand that means we have to organise it around simulating the movements of a limited set of tokens, i. Why use highly advanced information tech to simulate the very primitive information tech of money for that is what it is? Material things really are limited, and they need to be represented partly in that aspect digitally.
Why confuse a specific need to express limitedness with everything else?