What is BitCoin?

Zen Yotta Mond Data

Not quite complete draft of an article I'll be finishging/publishing ASAP. Still have a few paragraphs left, but give it a read and tell me how you like it. pitts@moneybutton.com to reach me, if you give me some good criticism I'll return your money back to you.

Dedicated to my wife & children: I started blogging and posting on social media in 2017 as an open letter and wisdom-transfer to them, with as many personal stories as I can include. If no one reads my writing but them, the time spent is worthwhile.

How many people have asked? How many people have answered; yet, you still don't REALLY know what the hell BitCoin is. Some say it's just digital money. The "digital" part is obvious, it typically means computers and computer networks are involved. But what about "money"? What is money? This question was the basis for the last article which you can read here: What is Money?: https://medium.com/@EquityDiamonds/why-many-smart-coders-dont-get-bitcoin-6c87239253d1

Money is always a proof of work. It's not just any proof of work but the MOST EFFICIENT proof of work (more than gold, or electricity, or cow chips) which allows people to conduct commerce. Armed with this knowledge, it's now appropriate to move on to the trillion dollar question: What is BitCoin?

When done reading this article, here is the expected rewards for the reader - whether the reader is an artist, a Wall Street financier, or a software engineer:

  1. You'll be finally armed with understanding what BitCoin REALLY is, by comparing it to another familiar asset class everyone understands: Real Estate.
  2. You know how to calculate fundamental valuations for BitCoin price, as if BitCoin was any other financial instrument like a stock or a bond. This is important for financial types, who commonly complain they don't know how to calculate what price BitCoin's should trade. While many have used the market capitalization of the US Dollar or all the fiat currencies to estimate a high-side destination for BitCoin price, that's the weaker side of valuation work. The stronger side is understanding how to calculate the RISK → what LOW price could BitCoin achieve during these early innings of expected high price volatility. (Uncertainty Principle of Investing [0]) 3.* You'll learn to be a big cheerleader of pruning (pruning means BitCoin network Node operators delete expired on-chain data): PRUNING GOOD. PRUNING VITAL. PRUNING = HEALTHY BITCOIN. Hopefully by the end of this article BSV-developers will be more likely to thank their local Node operator for pruning fastidiously and often, than chide them for deleting data-on-chain. 4.** You'll understand how OP_PUSHDATA will fully replace OP_FALSE OP_RETURN, and you'll never wish to seriously put data into an unspendable coin again; or, at least not anymore than you'd put an important phone number you received onto a piece of paper in the back pocket of a pair of jeans about to endure a full cycle in the washing machine. Dig? Lastly, a suggestion for how to structure your on-chain data with the proper and responsible amount of economics attached. This is presented for peer review with the hope software engineers and business founders will comment on whether is makes sense to structure their on-chain data with the methodology suggested.
  • If you feel lost by talk of pruning or data-on-chain, we hope to make this so clear a 5th grader can get it. ** This part really is for software engineers, but it is hoped non-techical folks might surprise themselves here.

Comprehensively: you will have a much clearer idea of the computational revolution about to occur in the next 25 years - thanks to the unleashing of BitCoin with it's full arsenal of tools in 2020. Let's get started.

It took a bona-fide pantomath to create BitCoin (our next article is on that topic), so why not start off with words right from the stallion's mouth?

"We're limiting ourselves in thinking about bitcoin as just money, or as just transactional exchanges. It is so much more. We have to start thinking, not just money, but a full digital rights network, a full transaction network for FILES that link to redeemable contracts. Then we'll start actually understanding what this is all about." - Satoshi Nakamoto to Nick Szabo, 2015 [1]

The Bitcoin network provides a commodity marketplace for...