GLACA on Nostr: “Say #Bitcoin supply was 1 million guineas, then a Guinea would be 21 BTC where 1 ...
“Say #Bitcoin supply was 1 million guineas, then a Guinea would be 21 BTC where 1 BTC = 1 shilling. So I guess that would make a Bitcoin guinea 21x12=252 pence, or 2016 half-farthings (derivation fourthling). Now that number looks familiar 👀 2016 blocks per difficulty adjustment.”
This note, originally written by Bitcoin OG Adam Back, reflects a parallel between historical British currency systems and Bitcoin’s design. It explores how Bitcoin’s difficulty adjustment (every 2016 blocks) resembles recalibrations in traditional monetary systems, aligning Bitcoin’s divisibility and stability mechanisms with centuries-old British currency structures. The comparison suggests Bitcoin satoshis function like half-farthings for precision in transaction values, highlighting a symbolic continuity between ancient and modern economic philosophies.
Breaking Down the Scenario
1. Bitcoin Supply as Guineas:
• If Bitcoin’s total supply were 1 million guineas, each guinea would represent 21 BTC.
• Historically, a guinea was equivalent to 21 shillings in pre-decimal British currency, so this metaphor places Bitcoin in the role of shillings and each guinea as a higher denomination.
2. BTC as Shillings:
• If 1 BTC equals 1 shilling, then you’re aligning BTC with a fraction of a guinea, reinforcing Bitcoin’s divisibility as it functions with smaller units (satoshis) within a whole coin, like how shillings, pennies, and farthings subdivided pounds and guineas.
• This approach mirrors Bitcoin’s 100-million satoshi structure, where each “whole” (in this case, 1 BTC) has ample divisibility, just as the British currency did.
3. 252 Pence per Guinea:
• A guinea equates to 252 pence (21 BTC * 12 pence per shilling). This mirrors Bitcoin’s scaling because both systems use units that divide easily and offer flexibility for smaller transactions.
4. 2016 Half-Farthings and Bitcoin’s Difficulty Adjustment:
• Dividing 252 pence by a smaller denomination like the half-farthing (1/8 of a penny) gives 2016 units, aligning with Bitcoin’s difficulty adjustment cycle, which recalibrates every 2016 blocks. In Bitcoin’s proof-of-work model, every 2016 blocks (approximately two weeks), the difficulty level adjusts to keep block production consistent.
• This number creates an interesting parallel: both the historical British system and Bitcoin depend on periodic recalibration—one through economic valuation and subdivisions, the other through cryptographic difficulty adjustment.
The Significance of 2016 in Both Systems
The Bitcoin network’s difficulty adjustment after 2016 blocks serves to stabilize its block time target of 10 minutes. Here, the “2016 half-farthings” analogy suggests a kind of stabilization mechanism in traditional currency as well: half-farthings served to facilitate trade and precision in pricing at the smallest levels.
In a symbolic sense, the half-farthing, as the smallest physical denomination in old British currency, parallels the Bitcoin satoshi, the smallest Bitcoin denomination. This precise, stable divisibility allows both systems to scale from very high to extremely low values with elegance, offering continuity and flexibility in economic transactions.
Historical-Poetic Parallels
This analogy can be seen as more than just numbers; it ties Bitcoin to centuries-old monetary systems, suggesting that Bitcoin’s seemingly novel system actually echoes historical monetary structures, albeit in a digital and cryptographically secured form. The 2016 blocks per difficulty adjustment and the 2016 half-farthings per guinea serve as both a structural and rhythmic basis in each system, aligning old and new financial technologies around recalibration, stability, and precise divisibility.
This comparison brings an intriguing depth to Bitcoin’s structure, as if it were an evolved digital guinea standard. Just as the British currency system once measured wealth through divisible units with recalibration, Bitcoin’s design elegantly reflects this in a digital, decentralized form with cryptographic adjustments, showing a strong continuity between ancient and modern economic philosophies.
This note, originally written by Bitcoin OG Adam Back, reflects a parallel between historical British currency systems and Bitcoin’s design. It explores how Bitcoin’s difficulty adjustment (every 2016 blocks) resembles recalibrations in traditional monetary systems, aligning Bitcoin’s divisibility and stability mechanisms with centuries-old British currency structures. The comparison suggests Bitcoin satoshis function like half-farthings for precision in transaction values, highlighting a symbolic continuity between ancient and modern economic philosophies.
Breaking Down the Scenario
1. Bitcoin Supply as Guineas:
• If Bitcoin’s total supply were 1 million guineas, each guinea would represent 21 BTC.
• Historically, a guinea was equivalent to 21 shillings in pre-decimal British currency, so this metaphor places Bitcoin in the role of shillings and each guinea as a higher denomination.
2. BTC as Shillings:
• If 1 BTC equals 1 shilling, then you’re aligning BTC with a fraction of a guinea, reinforcing Bitcoin’s divisibility as it functions with smaller units (satoshis) within a whole coin, like how shillings, pennies, and farthings subdivided pounds and guineas.
• This approach mirrors Bitcoin’s 100-million satoshi structure, where each “whole” (in this case, 1 BTC) has ample divisibility, just as the British currency did.
3. 252 Pence per Guinea:
• A guinea equates to 252 pence (21 BTC * 12 pence per shilling). This mirrors Bitcoin’s scaling because both systems use units that divide easily and offer flexibility for smaller transactions.
4. 2016 Half-Farthings and Bitcoin’s Difficulty Adjustment:
• Dividing 252 pence by a smaller denomination like the half-farthing (1/8 of a penny) gives 2016 units, aligning with Bitcoin’s difficulty adjustment cycle, which recalibrates every 2016 blocks. In Bitcoin’s proof-of-work model, every 2016 blocks (approximately two weeks), the difficulty level adjusts to keep block production consistent.
• This number creates an interesting parallel: both the historical British system and Bitcoin depend on periodic recalibration—one through economic valuation and subdivisions, the other through cryptographic difficulty adjustment.
The Significance of 2016 in Both Systems
The Bitcoin network’s difficulty adjustment after 2016 blocks serves to stabilize its block time target of 10 minutes. Here, the “2016 half-farthings” analogy suggests a kind of stabilization mechanism in traditional currency as well: half-farthings served to facilitate trade and precision in pricing at the smallest levels.
In a symbolic sense, the half-farthing, as the smallest physical denomination in old British currency, parallels the Bitcoin satoshi, the smallest Bitcoin denomination. This precise, stable divisibility allows both systems to scale from very high to extremely low values with elegance, offering continuity and flexibility in economic transactions.
Historical-Poetic Parallels
This analogy can be seen as more than just numbers; it ties Bitcoin to centuries-old monetary systems, suggesting that Bitcoin’s seemingly novel system actually echoes historical monetary structures, albeit in a digital and cryptographically secured form. The 2016 blocks per difficulty adjustment and the 2016 half-farthings per guinea serve as both a structural and rhythmic basis in each system, aligning old and new financial technologies around recalibration, stability, and precise divisibility.
This comparison brings an intriguing depth to Bitcoin’s structure, as if it were an evolved digital guinea standard. Just as the British currency system once measured wealth through divisible units with recalibration, Bitcoin’s design elegantly reflects this in a digital, decentralized form with cryptographic adjustments, showing a strong continuity between ancient and modern economic philosophies.