The post originally appeared on Medium, titled “BitCoin: Zen Yotta Mond Data?” and we republished with permission from its author, John Pitts.
Dedicated to my wife & children: I started blogging and posting on social media in 2017 as an open letter and wisdom-transfer to them, with as many personal stories as I can include. If no one reads my writing but them, the time spent is worthwhile.
How many people have asked? How many people have answered; yet, you still don’t REALLY know what the hell BitCoin is. Some say it’s just digital money. The “digital” part is obvious, it typically means computers and computer networks are involved. But what about “money”? What is money? This question was the basis for the last article which you can read here:
Money is always a proof of work. It’s not just any proof of work but the MOST EFFICIENT proof of work (more than gold, or electricity, or cow chips) which allows people to conduct commerce. Armed with this knowledge, it’s now appropriate to move on to the trillion dollar question: What is BitCoin?
When done reading this article, here are the expected rewards for the reader—whether the reader is an artist, a Wall Street financier, or a software engineer:
- An understanding what BitCoin REALLY is, by comparing it to another familiar asset class everyone understands: Real Estate.
- Calculate fundamental valuations for BitCoin price, as if BitCoin was any other financial instrument like a stock or a bond. This is important for financial types, who commonly complain they don’t know how to calculate what price BitCoin’s should trade. While many have used the market capitalization of the U.S. Dollar or all the fiat currencies to estimate a high-side destination for BitCoin price, that’s the weaker side of valuation work. The stronger side is understanding how to calculate the RISK → what LOW price could BitCoin achieve during these early innings of expected high price volatility. (Uncertainty Principle of Investing )
- * Pruning is good — vital for healthy BitCoin Network. (pruning means BitCoin network Node operators delete expired on-chain data) It is hoped that by the end of this article BSV-developers will be more likely to thank their local Node operator for pruning fastidiously and often, than chide them for deleting data-on-chain.
- ** How OP_PUSHDATA will fully replace OP_FALSE OP_RETURN, and you’ll never wish to seriously put data into an unspendable coin again; or, at least not anymore than you’d put an important phone number you received onto a piece of paper in the back pocket of a pair of jeans about to endure a full cycle in the washing machine. Dig? Lastly, a suggestion for how to structure your on-chain data with the proper and responsible amount of economics attached. This is presented for peer review with the hope software engineers and business founders will comment on whether is makes sense to structure their on-chain data with the…
Read more:BitCoin: Zen Yotta Mond Data – CoinGeek