What if you theoretically discovered what bitcoin is in your pursuit to study its physics, and are precisely worried about this in terms of releasing your findings….
Not fiat power law physics, like quantification of btc in joules based on entropy creation/resolution.
Bitcoin can be priced in joules solely from just the blockchain data 👀 no fiat science
Bitcoin IS priced in Joules.
Bitcoin and Joules are also priced in Dollars.
Bitcoin/Joules/Dollars provide us a value tracking triangle that allows us to see if one of the markets is unbalanced.
If the price of both Bitcoin and Joules skyrocket equally, then we know it's more likely the dollar that is collapsing.
If the price of Bitcoin rises in Dollars far faster than Bitcoins price in Joules, or Joules price in Dollars, then we know that Bitcoin itself is climbing on its own due to fomo (this occurs in the last few months of the bull runs).
Bitcoint is not just joules or energy, it is also priced in "time", time is priceless
Well, because you know the joules of the system and you know the time started in 1/3/2009… you can calculate the wattage of bitcoin as well.
It’s also power (energy over time), but the energy is conserved in immutable information, which has mass (bytes) on the blockchain.
Yes!!! Time is the ultimate source of value, and every 4 years the network reprices itself relative to BOTH Time and Energy. It's beautiful.
Can you elaborate on what you meant though by entropy creation/resolution?
Each block, miners create entropy by searching a 32-bit search space for a valid nonce, which is scaled by difficulty, and on the inverse a valid nonce resolves the entropy created by the number of possible microstates a block could take (unknown until mined), which is weighted by fees.
The energy of the entropy generated is equal to the energy of the entropy resolved. Knowledge of this process is how we use thermodynamics/physics to deterministically measure the amount of joules within Bitcoin the system.
Each block is associated with energy flowing into the system, this is the real NGU. Energy of Bitcoin in joules is increase as long as the Coinbase + Fees of the block is non-zero.
You can deterministically measure the amount of energy within Bitcoin from Genesis to present without any fiat and just joules per btc or joules per Satsoshi….its just physics.
In almost16 years, I’m shocked no one has done it. Everyone is stuck in the abstraction of 21M scares units.
Very interesting! I'd love to see an in depth article or chart showing the joules of the network and the joules per Bitcoin over time.
IMO the 21,000,000 number is basically irrelevant and a marketing ploy (Sacrilege!). What's more relevant is that the total supply will never be meaningfully debased, instead the new supply halves every 4 years so the energy and time input per new Bitcoin continues to grow which drags the price on the open market up along with it.
Bitcoin's market cap is capable of going significantly higher than everything else combined. Because the market cap is meaningless. The average cost of production of new coins in Time and Joules is what matters.
We are working out how to release something this properly. Again the implications of this are not to be taken lightly at all. Bitcoin fixes physics, meaning every single person’s world view on reality is not based in a fully truthful foundation.
It’s been ~16 years and bitcoiners, physicists and engineers have failed to actually capture and quantify bitcoins innate nature; energy. This is why nobody can agree with what Bitcoin is. Everyone is larping based on their view of the abstract 21M units, and it’s such a shallow rabbit hole. The bitcoin space in this framework is incredibly stale.
We’re going much much deeper. After the new year expect to hear some news.
