Bitcoin Optech Newsletter #138

Here’s the problem. Bitcoin has over $250 billion in market capitalization. Its market capitalization is growing over time, taking some market share from other stores of value, and growing into a meaningful asset class. If Bitcoin grows in use as a store of value, the transaction fees and inherent limitations prioritize the largest and most important transactions: the major settlement transactions. Binance exchange is the largest crypto exchange website by crypto trade volume and one of the fastest crypto exchanges in the world. According to him, the scarcity of laws is the foremost reason behind the dodgy scenario of the crypto world in the United States. However, the world does that anyway, because it derives value from it compared to the value that it had to put in to get it. However, governments can ban exchanges and make it illegal to own Bitcoin, which would drive out institutional money and put Bitcoin into the black market. Bitcoin mining equipment is mobile, and thus can be put near wherever the cheapest source of energy is, to arbitrage it and give a purpose to that stranded energy production.

Additional layers built on top of Bitcoin can do an arbitrary number of transactions per minute, and settle them with batches on the actual Bitcoin blockchain. It is a common misperception that blockchain networks like Bitcoin are fully anonymous; they are actually pseudonymous because there is a viewable address that can be associated with a user if the information gets out. Watching this play out in 2017 was one of my initial risk assessments for the protocol, but three years later, that concern no longer exists. Another legitimate concern that folks have is that even if Bitcoin is successful, that will make governments ban it. Some governments already have. Step 3: Once you have bought USDT, go to Funds and select Transfer funds to Binance. The user did not transfer any funds to deficit losses in the account after liquidation. Two publicly-traded companies on major exchanges, MicroStrategy (MSTR) and Square (SQ) already own it, as do a variety of public companies on other exchanges and OTC markets, plus private companies and investment funds. Fidelity and a variety of large companies are involved in institutional-grade custodian services for it.

Nakamoto originally designed bitcoin as an alternative to traditional money, with the goal for it to eventually become a globally accepted legal tender so people could use it to purchase goods and services. A network alert system was included by Satoshi Nakamoto as a way of informing users of important news regarding bitcoin. In the land of the free, there was a benign yellow metal that we could be sent to prison for owning coins and bars of, simply because it was seen as a threat to the monetary system. Then, it has to be purified and minted into bars and coins, and transported. There was a four-decade period from the 1930’s to the 1970’s where keeping money in the bank or in sovereign bonds didn’t keep up with inflation, i.e. the orange bars were net negative. 3) We’ve already processed billions of dollars of deposits/withdrawals today; we’ll keep going.

We are going to refer Bitcoin as asset interchangeably through this his explanation on how to use the provided technology. When you definitely need a certain amount of currency in a near-term time horizon, Bitcoin is not the asset of choice. For each gold coin, a ton of money, energy, and time went into exploration for deposits, developing a mine, and then processing countless tons of rock with heavy equipment to get a few grams of gold per ton. There were rather few prosecutions over gold ownership, even though the penalties on paper were severe. Savers’ purchasing power went down if they held these paper assets. The government considered it a matter of national security to “prevent hoarding” and basically force people into the paper assets that lost value, or into more economic assets like stocks and real estate. This is because it’s an emerging store of value, roughly 12 years old now, and thus carries with it a significant degree of growth and speculation.