You don't need to be software engineer or PhD in economics to understand #bitcoin

Just ask the question :

If they print money why I don't get my share of it

This is why we need #bitcoin

https://nostrcheck.me/media/public/nostrcheck.me_4310159333410271571692738049.webp

1.Decentralization Problem (Byzantine General Problem):

How to create a trustless system where no single entity controls the entire network?

Solution:

Distribute a copy of the ledger to every computer on the network.

2.Malicious Actor Problem:

How to prevent malicious participants from exploiting the system?

Solution:

Implement a Proof of Work (PoW) mechanism, requiring participants to perform computationally intensive tasks to validate transactions.

3.Incentive Problem:

How to motivate honest participants to sustain their involvement in the network?

Solution:

Introduce a Bitcoin reward system, where participants (miners) are rewarded with newly minted bitcoins for contributing to network stability.

4.Autonomous Operation Problem:

How to ensure the system can operate autonomously without human intervention?

Solution:

Implement a Turing virtual machine, which orchestrates and executes transactions without the need for human control.

5.Halting Problem:

How to predict if a program running on the network will terminate or run indefinitely?

Solution:

Utilize a Turing incomplete machine, which sacrifices some computational capabilities in exchange for predictability and stability.

#Bitcoin    The Ultimate Piece Of Art

#Bitcoin    & network effect

**Metcalfe's Law:**

Metcalfe's Law states that the value of a network increases with the square of the number of users. To put it simply, the more people connected to a network, the more valuable the network becomes

**Reed's Law:**

Reed's Law takes into account the potential for different subgroups or communities within a network. It suggests that the value of a network is proportional to 2^(Number of Users) - 1, highlighting the explosive potential for value growth.

But wait 🫸

While most networks valuation come from the outside, #Bitcoin    's value is woven within its core.

This creates an astonishing feedback loop where value feeds on itself, like a cosmic dance of prosperity! 🔄💫

Think of it as the singularity point of network effects – a gravitational center that pulls in and magnifies value, just like a black hole's intense gravity. 🌌🔮

And don't forget, the unit of value in this captivating #Bitcoin    universe is capped, adding an element of scarcity and intrigue. It's like a hidden treasure waiting to be discovered! 💎🔒🚀🌟

Can you turn around 🤯

#Bitcoin    #blackhole #singularity

Infrastructure inversion refers to the scenario where newer technologies depend on the existing infrastructure of older technologies that were initially developed on the foundation of those older systems.

A classic example is the transition from horse-drawn carriages to cars and paved roads. In the early days of automobiles, they had to navigate the same bumpy and uneven roads that were designed for horse-drawn carriages. This made early car travel slow, uncomfortable, and challenging. However, as more paved roads were built to accommodate cars, the newer technology of automobiles gradually became the norm. Interestingly, even the old technology of horse-drawn carriages benefited from the improved roads, allowing them to travel more efficiently.

Similarly, consider the evolution from telephone lines to the internet. When the internet first emerged, it relied on existing telephone lines to transmit data. However, telephone lines were optimized for transmitting human voice communication, not data. This resulted in limitations such as slower speeds and occasional noise when connecting to the internet in the early days. As technology progressed, dedicated internet cables and optic fiber were introduced, allowing for faster and more reliable data transmission. This transition improved internet connectivity significantly and also humain voice communication that became transmitted as data.

In the context of

#bitcoin   , it integrates various technologies like computation, electricity, the internet, and even traditional banking systems. Just as cars adapted to paved roads and the internet transitioned from telephone lines to dedicated cables, Bitcoin has undergone transformations of its own. It has developed ways to generate its own energy for mining (renewable energy source), designed specialized hardware (ASICs) for efficient computation, established a decentralized network structure similar to the internet, and challenges elements of traditional banking systems by providing an alternative form of financial transaction and storage.

#bitcoin    revolution is underway

Napster's downfall resulted from its reliance on a central server directory.

B-money faced failure due to its inability to resolve the double spending issue.

Digicash met its demise as it couldn't address the double spending problem without depending on a central authority.

Hashcash didn't gain widespread adoption due to the lack of economic incentives.

Solving these challenges led to the creation of #Bitcoin

The Triple Point of #bitcoin

The triple point of water is a unique combination of temperature and pressure at which water coexists in three phases: solid ice, liquid water, and water vapor. It occurs at a temperature of 0.01 degrees Celsius (32.018 degrees Fahrenheit) and a pressure of 611.657 pascals (6.11657 millibars or 0.00604 atmospheres).

Know the mind-blowing

analogy!

#Bitcoin   's three state of matter (store of value, medium of exchange, unit of account) like the different states of matter (solid, liquid, gas). The temperature reflects the supply of Bitcoin, which affects its availability, and the pressure represents the demand for Bitcoin, which influences its value in the market.

So if the supply tend to 0

And the demanded tend to ♾️

In Wich time we can see the triple point of #bitcoin

Fundamentals #Bitcoin    design

To get self custody you have to embrace complexity

it's a trade off

Not a #bitcoin    ETF

To get decentralization you have to accept a slower throughput

it's a trade off

Not a #shitcoin

#[0] Verifying My Public Key: "@SLhwyr"