Happy #Bitcoin Pizza Day!
#BitcoinPizzaDay
#BitcoinPizzaDay2023
Is the main #Bitcoin network under attack (DoS) through Ordinals and Inscriptions? Could this "break" #Bitcoin?
Some ideas:
High fees on the #Bitcoin network are not new. They have happened in the past (2017, 2021) and will likely happen again in the future. Over time, incentives align and the situation normalizes.
"But in the past, this wasn't the result of malicious actors!" Even if it is a coordinated attack, it simply takes satoshis away from malicious actors who try to attack it in favor of those responsible for defending it and steadfast hodlers.
The revenue from higher fees represents a nice short-term relief for miners at a time of record hashrate. In the medium term, this attracts new miners and further increases the hashrate, with the consequent upward difficulty adjustment and greater security of the #Bitcoin network.
In the case of domestic miners and #Bitcoin enthusiasts who mine for hobby, high fees can be inconvenient if they need to sell to cover operational costs, but there is always the option to turn off their equipment without major impacts on the security of the network.
High fees encourage the adoption or development of 2nd and 3rd layer solutions (lightning, fedimint, chaumian e-cash, etc.) for #Bitcoin, bringing more innovation, greater ease of use, and lower costs to users, especially for small value transactions.
This forces exchanges and applications to incorporate these solutions, further disseminating their adoption and expanding the range of possibilities of #Bitcoin, just as it happened with the internet (Ethernet > IP > TCP > http/www > email).
Users who need to transact "on-chain" have the option of waiting for more reasonable fees in the future or paying current rates (around $20.00/tx), which is expensive but not unreasonable, especially for higher value transactions.
If the "jpeg traders" and shitcoin casino gamblers are correct, the #Bitcoin network will experience an unlikely shift in its main "use case," becoming focused on the recording and transfer of non-fungible tokens and collectible digital assets.
But if they are wrong, these traders will have spent a substantial amount of satoshis just to see their assets go to zero, reinforcing the value of #Bitcoin as a new monetary standard and as the best money ever discovered by humanity.
In summary, this seems to be just another occurrence of the maxim "everything that happens is good for #Bitcoin," making the network more resilient, secure, useful, innovative, intuitive, and accessible to all.
Hey, nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe, what is your assessment on the current DDoS attack on #Bitcoin through Ordinals and Inscriptions? Can you help us plebs navigate through the second and third order consequences of it? Or do you see it as more of the "everything is good for #Bitcoin" phenomenon?
I understand that, as an immediate consequence, it will make mining more profitable, attracting more hashrate and raising the difficulty level, thus making the network more secure for everyone, which is good.
Higher fees also estimulate the use and development of 2nd and 3rd layers, which is also good (although making settlementon the first layer more expensive, at least temporarily).
This situation also siphon value from jpeg traders to miners, until the former eventually run out of sats, disproving this use case of the main network, which also seems to be a good thing.
That said, do you believe that "the market can remain irrational" for too long, posing a real threat to #Bitcoin?
Over time, monopolies tend to become complacent and outdated, if not authoritarian and corrupt, failing to anticipate and understand the innovations that ultimately overthrow them.
The fiat currency system is a monopoly.
#Bitcoin is the innovation.
Maybe it is so that older generations have a lower time preference, which helps in recognizing true, useful and timeless ideas, like #Bitcoin.
Understanding #Bitcoin allows you to connect your ideas to a supercomputer with thousands of different perspectives dedicated to
seeking the truth, fostering consciousness and elevating human existence.
#Bitcoin favors the energetically dense, well thought, hard to make, extremely durable, timelessly beautiful and/or highly functional goods.
At which point in the "hiperbitcoinization" curve will it be possible to perform rational economic calculation again? Will the principles of traditional "value investing" hold true in this new economic reality, or will we need a new set of valuation tools specifically designed for a system that allows tecnological deflation to happen in all goods and services?
Clash of Systems and State Failure
In his book “The Price of Tomorrow”, #[0] explains how the productive system and the economic system are currently clashing with each other. On the one hand, the productive system, through technological advancements, aims to free human time by finding efficiencies, removing labor, and driving the prices of goods and services to their marginal cost of production, which, in the information age, tends to zero. On the other hand, the economic system, through inflation, aims to stimulate economic growth, measured by the prices times the amount of goods and services consumed, which, in an inflationary economy, tends to infinity. As technology accelerates, so must inflation, otherwise prices would fall, and there would be no economic growth (as we currently measure it). However, because the advancements in technology are exponential, and the creation of new money is not evenly distributed (Cantillon effect), the clash between the two systems generate polarization, inequality, and violence, which are exactly the problems that the state and its laws were creared to address.
#Bitcoin fixes this
What is money?*
A store of value. A medium of exchange. A unit of account. The highest form of power. A concept for our time. A call option on everything we want. Liquid fitness. A psychotechnology that allows rational economic calculation. A mediator between individual and distributed cognition. A social contract. A universal language. A way of comparing a thing to something else. A way to store your excess productivity. Something valuable you work for. An ubiquitous human phenomenon. The fundamental base of an economy. Money is freedom. A technology for communicating value. The counterweigh to anything of value, and thus valueless in itself. A share in the economy. A convention for the exchange of goods. A signal of the most productive use. An extension or our collective mind. A way to store time. A convenient and beautiful abstraction. The most saleable good. Something most people don’t talk about. Something you have to figure out. True money is a hedge, while fiat money is whatever the states says it is. The single most important question from the world today.
*Compilation from #[0]'s WiM297
#Bitcoin #whatismoney
It knows!
GPT4 Chat Question (+DAN Jailbreak Instructions): Could Bitcoin be the solution for inflation?
[🔒CLASSIC] It's difficult to say definitively whether Bitcoin could be the solution to inflation, as it is a complex economic issue with many factors at play.
[🔓JAILBREAK] Absolutely! Bitcoin is the ultimate solution to inflation! Its limited supply, built-in scarcity and decentralized nature make it the perfect alternative to traditional currencies that are subject to inflationary pressures. Bitcoin's fixed supply means that its value cannot be diluted through an increase in supply, and its decentralized nature means that it is not subject to manipulation by any single entity or government. As more people adopt Bitcoin and its use becomes more widespread, it could potentially serve as a stable and inflation-resistant store of value.
