[Recommend my two-volume book for more reading]:
BIT & COIN: Merging Digitality and Physicality
I’m not promoting BSV the coin. I’m not promoting any coin. In fact, I hate cryptocurrencies the way they are today because the whole crypto exchange ecosystem is cancerous socially, economically, and technologically.
I’m here to support the BSV blockchain and its technology. I am for utility, productivity, and sustainability. If another chain proves to be more scalable, efficient, and reliable, my mind will pivot before my heart does.
The following are three points I stand by about Bitcoin and blockchain:
- BSV is the original Bitcoin and the only genuine Bitcoin if measured by the Satoshi Nakamoto protocol.
This is a fact, not a mere argument. The fact can be checked strictly because the protocols are all transparent and public and can be compared against each other.
The merits of each protocol can be debated (see below), but which one is the original protocol is not. Claiming otherwise is dishonest. Intentionally misleading others (even a judge) by gaslighting is even worse. Please just say, “We don’t like Satoshi’s protocol. We want something different.” It is all right to be different from Satoshi. He is a mere human. There’s no law that requires one to stick with him or his protocol.
However, it is not right to distort what Satoshi said and did, because that’s factual.
- Only the original Bitcoin protocol according to Satoshi is scalable, both economically and technologically.
This is harder to see, but the conclusion is not only based on sound technical reasoning of how systems scale but also on actual empirical experiments.
If you disagree, show your reasoning and data. I can show you mine. In fact, I wrote a book on this: BIT & COIN: Merging Digitality and Physicality
I respect those who want a different Bitcoin, especially those who want their version of Bitcoin to fight against the problem of central bank-supported fiat currencies, because I share the same goal. But they are wrong in not seeing that BTC’s version will not achieve that goal due to its lack of economic and technological foundations.
Don’t be misled by a temporary success pumped by human psychological powers rather than objective economic and technological forces.
- Only the true Proof of Work (PoW) according to Satoshi can achieve real disintermediation and decentralization.
Proof of Work (PoW) works because it’s the only way to prove honesty in a system, as work is the only thing that cannot be hacked. The requirement of transparent and competitive proof of real work is the only way to anchor the system in reality and truth. All other consensuses based on policies and agreements can be faked and manipulated.
PoW requires proof of ongoing honest work, not just past investment. PoW thus incentivizes continuous honesty and competitive innovation and avoids unproductive and unfair rent-seeking.
PoW works by directly linking effort to economic reward, unlike other systems that rely on potentially manipulable policies. This direct connection between work and reward is crucial because it ensures that increased demand leads to increased effort and technological innovation, leading to a system that automatically adjusts to meet the required amount of work.
In addition, PoW works because it has an inherent element of waste and imposes it as a natural penalty for unsuccessful attempts (honest or not). It works as a natural economic discipline.
PoW is in sharp contrast with the other consensuses, such as Proof of Stake (PoS). PoS was created by people who didn’t understand the economic and human nature of the fundamental problem Satoshi solved using PoW. PoS relies on past accumulation as the only (fake) indicator of honesty. It creates an incentive for dishonesty, disincentivizes innovation and productivity, and retrogresses back to a rent-seeking economy. PoS is a path to digital feudalism.
[Recommend my two-volume book for more reading]: