BitcoinBellyButton on Nostr: Bitcoin thermodynamic. I can't think of anything else that is as close to the ideal ...
Bitcoin thermodynamic.
I can't think of anything else that is as close to the ideal of a free market as Bitcoin.
If that's true than all the external meddling and rule changes we are used to see in other markets are not there.
It's like a thermodynamic closed system with its own set of immutable laws where of course 21 millions and the halving are the among most important ones.
If left to itself the system would be completely predictable.
The available bitcoins are the gas inside a closed system.
The volume increase naturally with the issuance of new bitcoins, by miners heating up the system by spending energy, at a predictable pace which slows down every 4 years.
You can look at the bitcoin price as the difference between the natural volume (nV) determined by the issuance schedule and the actual measured volume (aV).
If nothing else acts on the system from the outside the difference is zero, 0.
When you heat up or cool down a gas it expands or contracts making the difference in volume more or less than zero.
In the case of Bitcoin the energy providing or removing heat to and from the system is unpredictable and this energy is nothing else than human action.
When no one but few nerds is pay attention the volume follows the laws of Bitcoin. Developers, miners, nodes, all these roles are part of the system. Whatever they do, they can't affect the changes in volume aka the price.
Things get interesting when someone steps into a role outside the system and provides some energy to it spending external fuel in order to do so.
With gasses the molecules get all excited by heat and put pressure on the system walls expanding its volume.
In Bitcoin the difference between the natural volume and the actual volume is the price and it must move from zero. If enough people fuel the fire than the volume keeps expanding until a point where the walls must strengthen to stand the new pressure and find a new balance.
Hodlers are the ones who keep the fire hot enough to maintain the new reached and balanced volume by providing the necessary energy burning the fiat fuel. If they weren't the system would contract back to its natural volume.
New hodlers are sucked inside and become part of the system. Together with the halving they strengthen the system walls so that now more energy is needed to start the expansion process all over again. Cycle after cycle.
I can't think of anything else that is as close to the ideal of a free market as Bitcoin.
If that's true than all the external meddling and rule changes we are used to see in other markets are not there.
It's like a thermodynamic closed system with its own set of immutable laws where of course 21 millions and the halving are the among most important ones.
If left to itself the system would be completely predictable.
The available bitcoins are the gas inside a closed system.
The volume increase naturally with the issuance of new bitcoins, by miners heating up the system by spending energy, at a predictable pace which slows down every 4 years.
You can look at the bitcoin price as the difference between the natural volume (nV) determined by the issuance schedule and the actual measured volume (aV).
If nothing else acts on the system from the outside the difference is zero, 0.
When you heat up or cool down a gas it expands or contracts making the difference in volume more or less than zero.
In the case of Bitcoin the energy providing or removing heat to and from the system is unpredictable and this energy is nothing else than human action.
When no one but few nerds is pay attention the volume follows the laws of Bitcoin. Developers, miners, nodes, all these roles are part of the system. Whatever they do, they can't affect the changes in volume aka the price.
Things get interesting when someone steps into a role outside the system and provides some energy to it spending external fuel in order to do so.
With gasses the molecules get all excited by heat and put pressure on the system walls expanding its volume.
In Bitcoin the difference between the natural volume and the actual volume is the price and it must move from zero. If enough people fuel the fire than the volume keeps expanding until a point where the walls must strengthen to stand the new pressure and find a new balance.
Hodlers are the ones who keep the fire hot enough to maintain the new reached and balanced volume by providing the necessary energy burning the fiat fuel. If they weren't the system would contract back to its natural volume.
New hodlers are sucked inside and become part of the system. Together with the halving they strengthen the system walls so that now more energy is needed to start the expansion process all over again. Cycle after cycle.