Bitcoin has won.
Never before in the history of mankind have there been more secure, scarce, valuable, transportable, decentralized and network resources.
It is more mobile than gold. It appreciates faster than property. Its supply is not like stocks and bonds. Its payment network is faster and cheaper than Visa.
Its user base is growing faster than the Internet in the 90’s. Its market cap is more than a trillion dollars. There is a huge possibility to reverse this. It’s already too big to fail.
And yet, skeptics continue to repeat the same old FUD. This is where I will break it down.
Bitcoin is a railway network in cyberspace
What is “green”: driving or getting a train to work?
Obviously the train, isn’t it?
But what if you consider the total energy costs of building a fully functional and connected rail network? It’s decades and billions of dollars (money) Is Power) to create a rail network that everyone can use for a fraction of the cost.
Bitcoin is this: a railway network in cyberspace.
The energy used to create this huge, secure, decentralized and redundant network is enormous. But only when seen in isolation. When it’s done – and it’s almost done – it will allow anyone to send money at any time, almost free of charge.
Pure, non-abrasive, financial energy flows between bitcoin rail parties. Very fast, very safe, very reliable.
Try sending a gold bar to your friend in Bhutan on Sunday at 12:45 p.m.
Bitcoin does it in a second.
Bitcoin unlocks the trapped energy
Everything is matter or energy. And people need energy to survive. We have always transformed energy from one form to another.
Take the case of electricity. No more than 500 miles of electricity can be transported – this is a solid limit. So when human populations flourished in cities all over history – New York City, Bombay, London, Paris, Singapore – they had to transmit electricity. And because of the difficult limits, we have built power plants.
We have spread so much energy to bring energy into people.
But there are forces on earth that are completely uninhabitable – currents, seas, deserts, forests, geysers, ice caps.
What if you could convert the kinetic energy of a distant waterfall into electricity in the middle of an uninhabited part of the Amazon rainforest? And use it to get a bitcoin mining rig?
You have now converted natural, renewable energy into resources. Now multiply this by one billion. There are a billion sources of energy stuck on our planet that we have ignored because we do not live near them.
A completely decentralized, uninterrupted, renewable network of bitcoin rigs is scrambling to build a secure, decentralized resource network. Directed by Mother Nature.
We don’t need this electricity in our house because no one lives there. How do we use it to mine bitcoin instead?
More energy does not mean more bitcoin
Hey, if Bitcoin is really this valuable, then why don’t we use every computer chip on the planet to do a job, my Bitcoin?
Doesn’t that mean we can dig more than that and get paid and get rich? Didn’t we do that with Gold Rush?
Well, no – you can’t. Because of the beauty of the “difficulty combination”.
As you can see, Fiat is the opposite of money which cannot be protected (remember money) Is Energy. And energy cannot be created or destroyed. Fiat money violates the first laws of thermodynamics and thus counterfeit), fixing the number of bitcoins that can be mined.
When you are “mine”, you are rewarded for your work in Bitcoin. You can only mine a certain number of bitcoins in a certain cycle. And this award is halved every four years.
In this digital gold rush, as more and more miners are connected to their super computing hardware, the bitcoin algorithm automatically adjusts to the difficulty of making it difficult to mine a certain number of bitcoins.
When China banned bitcoin mining a few months ago, the rate of bitcoin hashes dropped by 50%. The difficulty adjustment makes it easy to automatically mine bitcoin for the remaining mining.
As you can see, this is a talented work of motivation, demand, supply and computing power. And it happens autonomously. And it works like a charm.
Do you think that if Google shuts down 50% of its computing power overnight, it will face some problems?
Bitcoin is the most secure computer network on the planet
Bitcoin has never been hacked and counted in 12 years.
Its biggest weapons: decentralization and redundancy.
Each single bitcoin node has a copy of the blockchain that every other node has. So, if you want to edit or hack blockchain, you have to get 51% of the entire global bitcoin mining network to agree with you.
You can’t because they won’t.
As you can see, digging doesn’t just produce more bitcoin. It protects the network through decentralization and redundancy. So miners are encouraged to mine bitcoin and as a by-product, every bitcoin wins.
If you want to ban Facebook, you give Zuckerberg a call. Who would you call to stop Bitcoin?
That’s right. No one. Or everyone.
There are many more FUDs that I will be debunking in the next few days. It was just a taste.
Bitcoin is a rabbit hole that never ends. It is based on economics, ecology, network theory, computer science, math, cyber security and game theory. The more you dig, the more you will find.
It is a trillion dollar reserve that is not owned by 99% of the world. But you can. Why are you waiting
This is a guest post from Arkash Nalawad. The views expressed do not fully reflect their own and BTC Inc.’s Bitcoin Magazine.