SovereignArab on Nostr: Digital scarcity. This is Bitcoin's most important feature and innovation. And it's ...
Digital scarcity. This is Bitcoin's most important feature and innovation. And it's secured by real-world energy.
Bitcoin's consensus mechanism, proof of work (PoW), tethered the digital world (Bitcoin) to physical reality, creating a time chain. To move this time chain, you need increasingly more and more energy (hash rate for mining blocks).
This is the real innovation of Bitcoin that separates it from every other cryptocurrency.
Time in the digital world can go backward and forward, undo-delete, etc., but in the physical world, time moves in one direction. (At least until we invent time machines). This is what makes Bitcoin immutable. If you want to hack the network or sabotage it in any way, you need a massive amount of energy to do just one double spend. You're then revealed to be a malicious actor and kicked off the network. Nice try.
The beauty of this elegant system is that you realize resistance is futile, and more importantly, it's much more economically advantageous to simply join the network (buy/mine Bitcoin). This is what capital allocators from traditional markets are beginning to realize now, and we're seeing this apex predator asset class being repriced in real-time.
Intelligent design.
Bitcoin's scarcity is protected by a wall of energy, physics, and math. Not human beings, politicians, and policies.
And in the history of humanity (at least what we know of it), absolute scarcity is something financial markets have never experienced.
Yalla Habibi. Full send 🚀
Bitcoin's consensus mechanism, proof of work (PoW), tethered the digital world (Bitcoin) to physical reality, creating a time chain. To move this time chain, you need increasingly more and more energy (hash rate for mining blocks).
This is the real innovation of Bitcoin that separates it from every other cryptocurrency.
Time in the digital world can go backward and forward, undo-delete, etc., but in the physical world, time moves in one direction. (At least until we invent time machines). This is what makes Bitcoin immutable. If you want to hack the network or sabotage it in any way, you need a massive amount of energy to do just one double spend. You're then revealed to be a malicious actor and kicked off the network. Nice try.
The beauty of this elegant system is that you realize resistance is futile, and more importantly, it's much more economically advantageous to simply join the network (buy/mine Bitcoin). This is what capital allocators from traditional markets are beginning to realize now, and we're seeing this apex predator asset class being repriced in real-time.
Intelligent design.
Bitcoin's scarcity is protected by a wall of energy, physics, and math. Not human beings, politicians, and policies.
And in the history of humanity (at least what we know of it), absolute scarcity is something financial markets have never experienced.
Yalla Habibi. Full send 🚀