Is BSV the real Bitcoin?

Foundational definitions of Bitcoin start with the Bitcoin whitepaper as the source of truth, but the whitepaper does not specify a number of crucial …

The Mythbuster Series will be an ongoing project where topics of mass confusion are highlighted, broken down and explained in layman’s terms. If you have a Bitcoin topic you would like clarified, send me a direct message on twitter or telegram @kurtwuckertjr, and I will add it to my own personal mempool.

Is BSV the real Bitcoin?

The problem with the establishment of “real” is the need for a fundamental understanding of facts and truths. Industries and governments create standards organizations or regulatory bodies to establish what is real, while churches form governance organizations and hold theological councils. Groups of artistic fandoms form social groups to discuss and maintain the canon of things like books, comics and movies, but in Bitcoin, there is a malaise of conflicting views on the establishment of standards for defining the precepts of Bitcoin. The problem is that if Bitcoin is not defined by foundational principles, then it is completely beholden to an ever-changing social narrative—defined by the The Hegelian Dialectic.

Foundational definitions of Bitcoin start with the Bitcoin whitepaper as the source of truth, but the whitepaper does not specify a number of crucial basics—for example, the 21 million unit supply cap or the block size limit. The hard coded supply of Bitcoin was first given to the world in the original implementation of the mining software, which had no block size limit at all! The original implementation gave us Satoshi’s practical guidance on the whitepaper and the nuances of Bitcoin’s unique economic model. Between the whitepaper and the first implementation, most questions are actually answered, including how to define Bitcoin in the event of two competing chains:

“The majority decision is represented by the longest chain, which has the greatest proof-of-work effort invested in it. If a majority of CPU power is controlled by honest nodes, the honest chain will grow the fastest and outpace any competing chains.” – Bitcoin: A Peer to Peer Electronic Cash System. Section 4.

However, we are given no guidance on what happens when dishonest nodes stage a coup d’é·tat to control the longest chain while honest nodes scramble to defend the rules of Bitcoin. In August 2017, honest nodes split the UTXO set with replay protection to protect Bitcoin from what I call “The Raspberry Revolt,” and Bitcoin has been in uncharted and contested waters ever since.

When there are two or more valid versions of Bitcoin that can’t directly orphan and reorganize one another, how do we define anything? Do we default to foundational principles? Do we look at who has the most proof of work? Do we follow the longest chain? What if the most proof of work removed the supply cap of Bitcoin?

There are so many variables, that it might make sense not to ask whether BSV is Bitcoin, because of the lack of understanding about governing authority, but rather to take a step back and consider an analogy.

Where’s the beef?

Let us reframe the debate to a theoretical shakeup in the McDonald’s fast food corporation, for a less contentious example.

Imagine McDonald’s started refusing to build big enough stores to suit their volume. What if they eliminated drive-through windows, and decided to cook everything from scratch using a completely new service model and supply chain? To mitigate the problems created by their inefficient practices, assume they also decided to use third-party delivery drivers (still in beta) and not let anyone in the store who cannot afford to spend a mandated minimum. They do this to avoid wasting time on customers who take up valuable dining space only to use the dollar menu. Then, McDonald’s traffic drops, but the company begins to praise low congestion because they are excited not to be stressing existing infrastructure.

Out of the ensuing chaos, a bunch of former store managers, business partners, the former head chef, some longtime customers, and fans of the McDonald’s brand decide to return to the original path, keep the successful recipes and follow the time-tested business model that made them successful in the first place. They make a company called “McDonald’s Classic Vision” and advertise that there is still somewhere you can get a “real” Big Mac for fast and cheap in accordance with the original vision of McDonald’s.

McDonald’s Inc gets really mad and starts calling McDonald’s Classic Vision a “scam” because they are not “the real McDonald’s.” They begin clamoring that McDonald’s Classic Vision is confusing people, and making people think there is something wrong with their new McDonald’s – which retains the oldest brand name and history of corporate documentation. Tired of the confusion, some customers move to Burger King and Wendy’s who basically just forked the McDonald’s business model and changed a couple of superfluous things to start up competing burger chains.

McDonald’s Classic Vision continues to follow the original recipes with simple, scalable business practices even though they are the smaller competitor. While the shakeup caused a lot of issues, and gave other competitors some opportunities to rise up, a significant number of people still just want the original Big Mac for fast and cheap. In the short term, most people trust that all of the changes that McDonald’s Inc has made are ultimately for the best in the long run because it is easier to open new franchises as long as infrastructural requirements stay low. But dominance is starting to shift over to McDonald’s Classic Vision because people are realizing that a complete reengineering of what made McDonald’s great in the first place is irresponsible and unnecessary.

Conclusion

Which one is the “real” McDonald’s? The one that keeps the old logo? Or the one that keeps the old recipes, supply chains and business model?

The fact is that the conversation is complex, and there are lots of variables to consider, but establishing your presuppositions is a crucial starting point. You must decide which points are up for debate, and which points you believe fundamentally define bitcoin, and then act accordingly.

Have it your way™

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Bitcoin Cash Price Changed by 2.89 percent

As at 2019-09-14 average Bitcoin Cash price is 306.74999177 USD, 0.02939609 BTC, 1.62742205 ETH. Bitcoin Cash average change within 24 hour …

As at 2019-09-14 average Bitcoin Cash price is 306.74999177 USD, 0.02939609 BTC, 1.62742205 ETH.

Bitcoin Cash average change within 24 hour is 2.89 against USD, 1.42 against BTC, -1.09 against ETH. Weekly report: 2 against USD, 2.99 against BTC, -2.76 against ETH. Monthly report: -3.32 against USD, -5.2 against BTC, -4.15 against ETH.

It’s noteworthy that is issued into circulation Bitcoin Cash.

Bitcoin Cash BCH/BTC on BitAsset exchange is 305.98. The trading volume on BitAsset is 555118.00.

At the same time Bitcoin Cash BCH/BTC on Birake exchange is 305.14. The trading volume on Birake is 47195.00.

Bitcoin Cash BCH/BTC on Whitebit exchange is 305.54. The trading volume on Whitebit is 1139203.00.

Bitcoin Cash BCH/USDT on Piexgo exchange is 306.38. The trading volume on Piexgo is 89770.00.

Bitcoin Cash BCH/USD on Exrates exchange is 305.94. The trading volume on Exrates is 8200549.00.

In this regard, 24 hour trading volume is 730974197.48876000 USD or 70049.82517870 BTC. At the same time Bitcoin Cash market capitalization is 5522496789 USD or $529225 BTC.

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Bitcoins and Cryptocurrency: Myths and realities

Now I’m sure many of you will know bits and pieces of this story that I’m about to begin: who is the founder of Bitcoin – Satoshi Nakamoto; why did he …

Part 2: The Journey

This is a story of secret beginnings. A story of a brilliant idea, born of trying times. A tale of ups and downs, theft and despair and triumphant comebacks. The story of an underdog, attempting to overcome the odds. No, this is not a fairy tale, but a real-life story of a… currency. Yes, you read right – currency. This is the story of the beginning of Bitcoin and its journey through the years. And the best part? The story isn’t quite finished… yet.

Now I’m sure many of you will know bits and pieces of this story that I’m about to begin: who is the founder of Bitcoin – Satoshi Nakamoto; why did he start this new currency – because of the 2008 financial crisis; how did he manage to fix the problem of double-spending that had been plaguing the digital currencies of the time – by using blockchain. But this is a mere summary of what is, quite truthfully, a saga. And as the saying goes, the devil is in the details… So, let’s dive in.

Legend has it, that Satoshi Nakamoto first began working on the concept of Bitcoin in 2007, but the concept was only documented and presented to the public through his Bitcoin whitepaper in October of 2008. What was so special about this little old paper? Well, for one, it described the Bitcoin currency, but far more importantly it detailed the use of a new technology called blockchain so that the Bitcoin currency could never be copied, thus solving the problem of double-spending.

About a week after the white paper was published the Bitcoin Project was registered on SourceForge.net – a website that was focused on the development and distribution of open-source software. A couple of months later, on January 3 of 2009, the Genesis Block was mined.

Got a few questions after reading that last sentence? I’m sure you do. So, let’s get some answers. First off, what is mining? Well, if you read on, there’s a whole section dedicated to mining, so we’ll get to that in a while. For now, simply think of mining as a highly competitive, magical process that results in a miner (a user on the Internet) finding a Bitcoin – much like miners in the old ages finding gold nuggets.

Second, what is a Genesis Block? That, I believe we should find out right now. The Genesis Block or Block 0 of the Bitcoin blockchain is the granddaddy of every other bitcoin block out there. How is this possible? Well, each new block that is created in the blockchain is connected to the one that came before it hence they all trace back to Block 0.

Generally, the difficulty of mining blocks is so great that it requires a specialized graphics card but Satoshi Nakamoto was able to mine Block 0 by simply using a CPU since, at the time, the difficulty was set to 1 – much like the first levels of a computer game would start at a difficulty level of ‘Easy’. Compare that with a difficulty level of 10,183,488,432,889 – which is the difficulty level of mining a block on the Bitcoin blockchain as at the time of writing this article – and you will perhaps begin to get an inkling of how the Bitcoin blockchain has expanded in the past decade or so.

Unlike in any of the blocks that came after, Satoshi Nakamoto decided to leave a little message in the code of Block 0. It read “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This was a reference to an article that appeared in the London Times on the day that the Genesis Block was created, and it provided details on yet another bailout of banks by the British government. Although the message was brief and didn’t give any more details as to why this article was important, many have interpreted this as a message from Satoshi, expressing his distaste for the banks and the middlemen and pointing to yet another reason why he created a more people-driven currency. A lesser-known, yet interesting fact about the Genesis Block is that throughout the years, people have been treating it as a sort of wishing well. How so? Well, the original Genesis Block contained 50 Bitcoins in total and these have never been spendable – they have always stayed put. But since the beginning of the system people have been sending bitcoins to this address (yes this ‘address’ business will be explained later) as a sort of tribute to the creator, in the process quite possibly making all of those coins un-spendable. The Genesis Block is, for many Bitcoin aficionados, synonymous with Satoshi Nakamoto, so in a way, sending Bitcoins to this address is a way for them to be closer to their Crypto God, the Creator of the Bitcoin Universe.

After establishing the Genesis Block, Version 0.1 of Bitcoin was released on January 9, 2009, and interestingly enough, in the release note of the software, Satoshi talked about the fact that the total circulation of Bitcoins would be 21 million, meaning that there would only ever be 21 million coins in the Bitcoin ecosystem. Now, no one really knows why Satoshi decided on this exact figure, although as is common with everything related to Bitcoin, there are many theories floating around, and in this case, many of those theories tend to be highly technical.

To put things into perspective, let us say that the overall supply of Bitcoin can be divided into three parts. One is circulating supply, meaning the number of coins that are out in circulation, either being traded or held by users on the network. Certain cryptocurrencies have all their coins pre-mined, or release all the coins from the beginning of the project, or even mine the coins over time.

Irrespective of which method is used, the circulating supply means whatever is available and circulating at present. Second is the total supply – referring to the number of coins in existence at the moment. This would include all created coins, whether in circulation or not. And thirdly, there is the maximum supply for a coin – meaning that if a number exists for maximum supply, then that particular coin will not be created again once it reaches this number. According to CoinMarketCap, an aggregator website on cryptocurrency information, at the time of writing this article, the total circulating supply of Bitcoin stood at 17,907,850 – roughly 18 million coins. With a maximum supply of 21,000,000 coins, this means that we have a further 3 million coins to mine.

And this perhaps is the best place to delve into the question of mining. Now I do plan to get a little technical here, so those of you who don’t want to clutter your brain with the details should skip right on ahead. For the rest of you brave souls, let us start with the basics. Simply put, mining is a way for you to earn cryptocurrency without having to buy it using money.

Interestingly, when Bitcoin first started, mining one block would earn a miner 50 BTC (Bitcoin). In 2012, it was halved to 25 BTC, in 2016 again halved to 12.5 BTC and is expected to go down to 6.25 BTC in 2020. This halving process occurs once in every 210,000 blocks or roughly every 4 years. Right, back to the topic at hand – what do miners actually DO when they mine? They are in essence being paid to work as auditors of the system. They are verifying past Bitcoin transactions to ensure that double spending has not occurred.

Imagine you had a Rs.100 note and a copy of that same note. If you were to go out and spend both those bills, someone taking the trouble to look at both bills carefully would know that the serial numbers on the notes are the same and hence would know that one of them is a fake.

What miners do is somewhat similar to this. Currently, when a miner has verified 1MB (megabyte) worth of transactions to ensure there is no double-spending, then they are eligible for the reward of 12.5 BTC. Eligible – yes, but not certain to receive it. Why? Well, in order to receive the reward, the miner has to meet conditions. One is that he has to verify 1MB worth of transactions.

But second, he has to be the first miner to get the right answer to a numeric problem. For those of you interested in the Bitcoin jargon, this process is known as ‘proof of work’. The good news here is that there is really no advanced mathematics involved in this process – it’s just a lot of guesswork. What the miner is actually trying to do is come up with a 64-digit hexadecimal number called a ‘hash’, that is less than or equal to a given target hash. Think of it this way. I have 4 friends to whom I say that I’m thinking of a number between 1 and 100 and they’re required to guess what it is. My number is 25.

A and B guess numbers above 25 and therefore are immediately out of the running. C guesses 24 and D guesses 20. They’d both be right because 24<25 and 20<25. No extra points for C just because he guessed closer! C and D are both eligible for the reward.

This happens quite often in the Bitcoin network where multiple miners guess right and the decision for the reward is then based on which miner has verified the most transactions. So, transpose this problem of guessing the number to the Bitcoin network – now the number that the miners are guessing is not between 1 and 100 but a 64-digit number and instead of just 4 people guessing, there are now millions.

There are pages and pages of more details for anyone interested in the subject of mining but since too much of a good thing is never advisable, I believe it is in our best interests to gently leave this topic here.

The writer is an Assistant Director at the Central Bank of Sri Lanka.

The views expressed in this article are those of the writer and do not necessarily reflect those of the Central Bank of Sri Lanka.

– To be continued next week

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Roger Ver plans to launch Bitcoin Cash derivatives platform

Bitcoin Cash head honcho Roger Ver has revealed plans to launch a BCH derivatives market alongside the newly-launched Bitcoin.com exchange.

Bitcoin Cash head honcho Roger Ver has revealed plans to launch a BCH derivatives market alongside the newly-launched Bitcoin.com exchange.

According to Bloomberg, who spoke to the exchange’s chief executive David Shin, the launch of new financial products is a way of increasing the trading volume of Bitcoin Cash to make it comparable with Bitcoin itself.

“Within a year, I want to make that the second- or third-largest market cap,” Shin said.

“To get from No. 4 to No. 3 or No. 2, we have to see more volume.”

In terms of the exchange, there are currently plans to list BCH futures on a CFTC-regulated market to increase interest from institutional traders.

Bitcoin Cash is digital gold that we can actually send to each other.#Consensus#InvestAsiapic.twitter.com/muRr3BqwtT

— Roger Ver (@rogerkver) September 10, 2019

“We’ll try to list a BCH future on one of these exchanges that’s CFTC regulated to, therefore, have a product that can be traded into the US with institutional traders,” Shin told Bloomberg.

“In theory, we should see more penetration, more users, more trading, and more volume.”

Coin Rivet reported on Bitcoin.com’s exchange launch last week, with offerings of peer-to-peer local transactions and the ability to trade without going through KYC requirements.

For more news, guides, and cryptocurrency analysis, click here.

The post Roger Ver plans to launch Bitcoin Cash derivatives platform appeared first on Coin Rivet.

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Satoshi Nakaboto: ‘Cubans resort to Bitcoin to bypass US sanctions’

Our robot colleague Satoshi Nakaboto writes about Bitcoin $BTC△1.96% every fucking day. Welcome to another edition of Bitcoin Today, where I, …

Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.

Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Planck used to say: Shleppppppp it!

Bitcoin Price

We closed the day, September 13 2019, at a price of $10,360. That’s a minor 0.52 percent decline in 24 hours, or -$54.81. It was the lowest closing price in one day.

We’re still 48 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).

Bitcoin market cap

Bitcoin’s market cap ended the day at $185,809,163,035. It now commands 71 percent of the total crypto market.

Bitcoin volume

Yesterday’s volume of $14,109,864,675 was the lowest in four days, 8 percent below the year’s average, and 68 percent below the year’s high.

Bitcoin transactions

A total of 305,719 transactions were conducted yesterday, which is 8 percent below the year’s average and 32 percent below the year’s high.

Bitcoin transaction fee

Yesterday’s average transaction fee concerned $0.34. That’s $3.37 below the year’s high of $3.71.

Bitcoin distribution by address

As of now, there are 17,430 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.

Furthermore, the top 10 Bitcoin addresses house 5.5 percent of the total supply, the top 100 14.6 percent, and the top 1000 34.4 percent.

Company with a market cap closest to Bitcoin

With a market capitalization of $190 Billion, Anheuser-Busch InBev has a market capitalization most similar to that of Bitcoin at the moment.

Bitcoin’s path towards $1 million

On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.

He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 89.7 percent behind being on track. Bitcoin‘s price should have been $100,871 by now, according to dickline.info.

Bitcoin Energy Consumption

Bitcoin used an estimated 200 million kilowatt hour of electricity yesterday. On a yearly basis that would amount to 73 terawatt hour. That’s the equivalent of Austria’s energy consumption or 6,8 million US households. Bitcoin’s energy consumption now represents 0.3% of the whole world’s electricity use.

Bitcoin on Twitter

Yesterday 15,885 fresh tweets about Bitcoin were sent out into the world. That’s 16.5 percent below the year’s average. The maximum amount of tweets per day this year about Bitcoin was 41,687.

Most popular posts about Bitcoin

This was yesterday’s most engaged tweet about Bitcoin:

Bitcoin Rages Bullish With Hash Rate’s 8-Fold Surge Since $20,000 Peak https://t.co/TCo1AHOwsz

— CCN Markets (@CCNMarkets) September 13, 2019

This was yesterday’s most upvoted Reddit post about Bitcoin:

Cuba becomes the latest country to use bitcoin to subvert US sanctions from r/CryptoMarkets

print(randomGoodByePhraseForSillyHumans)


My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.

Published September 14, 2019 — 10:28 UTC

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