Topic: John Nash created bitcoin - page 2. (Read 22259 times)

But all bitcoin early holders are also profiting from delayed seigniorage.  They obtained coins which were easy to mine (money that was easy to print) and it is now worth much more.  All deflationary currencies bring delayed seigniorage to their early holders.  In fact, almost all of bitcoin, and almost all of crypto, is living off the speculative effects of delayed seigniorage (cheaper printing than later market price).

There would have been a way in bitcoin to make seigniorage disappear: namely NOT INCREASE THE DIFFICULTY more than Moore's law, and keeping the block reward constant (tail emission).  You would then have a coin of which the value would remain constant, and equal to the (economic) work spent on it.  That is, if on average it would cost, say, 10 cents to mine a bitcoin in cost of proof of work, that would be about its market value, and would remain so, because if it increased, people would simply mine more of them, instead of paying more for them.  All of its seigniorage would be burned by PoW.  This is not the case in bitcoin, because as bitcoin's value is appreciating, the early mined coins were made with much less mining costs than their value, being similar to printed money in a way.

But bitcoin was not designed as an ideal money keeping its value almost constant, it was designed as a deflationary speculative asset, with delayed seigniorage, to profit early adopters, and blow a greater-fool bubble that way.

That's bs.

seigniorage <---- Key concept here....that's the cheat! 

It is not a cheat to debase money.  Money is not a value holder.  It is a promise fluidifier, and the debasement serves for it to be spend.  The 6% inflation tax is nothing compared to all other taxes by the state.  The whole idea is that money is not a long-term value holder, because otherwise it would be hoarded, which is explicitly NOT the idea.  Money should go around quickly, between being earned, and being spend.  Any amount of money should lose value in the long term, and be a motivation to spend it.  Money is not a store of value.

The whole sound money doctrine doesn't take into account the fact that money then becomes an investment asset, with all the volatility that comes with it, and renders is essentially useless as a (constantly decreasing) unit of account.  If the devaluation rate (inflation rate) is known, there's nothing wrong with it, because it is taken into account when considering exchanges at different times.  It is just an exponential correction factor.  But at least, devaluating money cannot be used as a long term store of value, and will not be hoarded, because that's not the function of money.

It is true that the resulting seigniorage is lucrative for the privileged in the money business, but it is less so, than states taxing people around 50%, and it serves a purpose, namely getting money go around, and not being hoarded.


Because the Rothschilds are not in (fiat) banking and are not on the receiving end of the seigniorage flux ?

As you can see, Satoshi himself considered that mining would be centralized, with a backbone of data centres of miners, and all users connecting directly to one of those data centres, no more P2P.  BTW, the P2P network doesn't mean zilch if the mining is centralized, which it is already.


But no matter what, any system with competitive rewards will always lead to centralization, whether it is block rewards or fees.  The LN is worse, in fact, because to become a competitive LN hub, you have to own a lot of bitcoin that you can put in channels, before exhausting them.  There are always economies of scale in competitive reward systems.  In fact, small blocks make it worse.  The network aspect is only a very small factor as compared to other means of competitive advantage with scale.  As of now, the majority of mining is in the hands, officially, of 5 pools, and in reality, most probably of 1 or 2 guys.

But mind you, these people will be very strict on the respect of the bitcoin protocol, because they are hugely invested in it ; not in coins, but in hardware.  So you have your faithful bitcoin central bank already.  It is in China.

Big blocks proponents never seem to to consider the centralization that big blocks would inevitably lead the network to. I would respect big blockers if they were clear on their motives and finally admitted that they simply don't care if the network becomes centralized, as long as they get to have their on-chain coffees.


The problem is, their narrative is twisted and intentionally misleading, they never admit the tradeoffs or claim the centralization factor of big blocks is exaggerated.

That's the advantage of John Nash, is there anyone who wants the problem right?
I think it's somewhat troubled her right ... keep cracking the code code is John Nash

I consider the emerging dynamics of the *interplay* of all human decisions as part of "nature", and not as a human decision itself.  Speculative value is at the same time a guess of the outcome of that interplay, and an input to the dynamics itself.
My point is that this complex dynamics is, apart from some general principles, essentially not predictable.  It is a more global version of the efficient market hypothesis in a way: all the obvious is already taken into account, and the rest is essentially entropy to us, which we can only guess, and sometimes, be lucky, and make us believe that we understood something, while we only played at the lottery and won.

It's not that much beside the point

speculative value is more about active humain decision than natural forces Money is all about added value from natural order in the bottom

Not for long any more in my opinion, but that's besides the question.  I'm not saying this.  I'm saying: Human mind power <<<<< nature is what I claim.

Human mind power > electrons

https://youtu.be/wSNHqqazavo

This is a naive vision of money.  The fiat system isn't as stupid and cheating as you think.  But it took me some time to understand that too.


You would be totally out of your mind to kill the system on which your wealth has been based for so long, wouldn't you ?

It was just the final touch to a pile of inventions for about 10 years before.  Almost all elements were already on the table.  Satoshi just put the elements together, and added a few of himself.

Inventing relativity in 1916 was a much, much, much bigger task than inventing bitcoin in 2008.  And Einstein did it all by himself. 

By thinking that we know what we are doing, we are governed by a dynamics that escapes all control.  But that is not controlled by anybody in particular, but is an emergent dynamics nobody masters.  We are like the molecules in a liquid, thinking that we know how to decide when to boil off.
My (essentially only, with some reserves) goal in life is to try to understand this phenomenon, and then die happily

You think we really know what we are doing or we are governed by things who escape all control ? 

It has a chance that satoshi nakamoto is a group or he is an individual who is help by a huge group. Creating the bitcoin is a huge thing that only one person I think cant make it alone. We cant find the answer now because satoshi nakamoto isnt revealing him self. And other people is impostering him.

As they say, be your own bank with bitcoin.
End the paper fiat currency that is a cheat thru persistent inflation and devaluation.
A nice (and noble) passion to fight for.
Only the rothschilds have the expertise and resources to carry through the plan, from global to national level.

I have this feeling that Satoshi is a group of people.