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It's been well proven not to be a scam. I already wrote about it in my book, it's about meeting the qualifications of what a currency is. A unit of account, a medium of exchange and a store of value. One day far off in the future after trillions of the globe's currency supply is put online and stored. Sounds like something I would have said before but now it's possible. The question is will bitcoin be replaced. I don't think it will.
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here's the first section
What is Bitcoin? Before we start analyzing Bitcoin and its growing prevalence as a currency we look at two things. The first is the concept of currency. Also, it is necessary and interesting to complement the new economic evolutionary step with the context of history. Now we will touch on these subjects very briefly.
What is Currency?
Money satisfies general human demands. It is used as exchange for goods and services. Money has specific uses that qualify it as money and there are three that will be considered here. A medium of exchange is something used for buying and selling goods and services. Labor is something that is sold and productive work is the foundation for a good economic system. When you work you do something valuable. You can supply a service such as dentistry, clerical work at a retail outlet or act as a mover. Or you can produce a good that can be put into a market and sold, such as this book. In any case, you work and are supplied something valuable for your time. If you work for a fast food outlet, say, you do not want to be given cooked food as compensation. You want something that can be used to satisfy desires for other goods and services at your discretion. Thus, you are given currency and this currency yields and represents the value of the labor you sold and allows you to buy something else you find valuable. Therefore currency acts as a medium of exchange. Money is used as a unit of account as well. A dollar, although just a piece of paper, gives individuals a relative measure of worth. If you go to a store with a dollar and look for things to buy you get an idea of the worth of everything in dollars. If you are offered three-hundred dollars for a week’s worth of work you then judge your willingness to do that work based on the unit of account by gauging it from the reference point that money provides. One more thing to discuss here is how money acts as a store of value. If you are given a hundred dollar bill, throw it in a safe and keep it there for a week the money will still be worth a hundred dollars. The value of that hundred dollar bill retains its value for future spending allowing individuals to save the value. The value of a dollar bill alters with time through alterations in purchasing power and government action. Governments can easily increase the money supply. Expanding the money supply will reduce the value stored in all units but will provide governments with money that is not based around original production and value offered. This notion is important later on to understand why e-currencies like Bitcoin grow in popularity.
1 Currency acts as a medium of exchange, unit of account and store of value 2 Money satisfies the human demand for these qualities
Advancement of Currency
Currency has advanced through many stages and here we will recognize four of them. The first stage was that of commodity money. This type of currency had an intrinsic store of value based on demand for it. Gold and silver are rare precious metals that are good examples of commodity money. These metals are scarce and look interesting and these reasons among others created a large demand but a small supply. Because there was consensus about the demand it was easy to start trading the material for more goods and services. These qualities satisfied conditions for currency. The next stage was a further advancement in convenience which was the currency phase of representational money. In this system commodities were stored in secure facilities (banks). The banks gave certificates to depositors of commodities and soon enough the certificates were traded. No longer did you have to accept the physical gold coin for something you sold, or in exchange for your labor. You could accept a representation of the commodity. You could trade the bank back the certificate for the gold or, as was just as good but more convenient, you could trade the certificate that was just as valuable as the commodity it represented. Now comes the stage of currency that marks the turn from free market oriented approaches to currency to government managed currency. Since this stage is the current it should be viewed as an experimental direction in the evolution of economics and money, not the conclusive next stage to be built upon. Fiat currency systems are the consequence of government monopolized banking systems of a particular country, or group of countries such as the EU. Since economies based on the representational money system were filled with many banks, and many certificates, governments created central banks that standardized the certificates. These central banks became the bank of banks and with government permission were able to remove the need for their currency to be backed by gold and silver among other things. This effectively meant that dollars could not be redeemed for commodities. Today this is the system we have. Fiat currency allows governments to print off money at will. There can be little stability because of mistakes by central banks that effect entire nations, or continents. From this point a new economic phenomenon is occurring. We now reach the next possible evolutionary stage of money and the subject of this book, digital currency. Digital currency is any form of money that is exchanged electronically. A very popular means for transferring money digitally is a debit or credit card. Scrip is the term used to describe currency that is not considered legal tender. After the fall of the Soviet Union many Russians used cigarettes as a currency. Cigarettes satisfied qualifications for currency but were not “legal tender” so were considered scrip. There are centralized and decentralized currency systems. Centralized currency systems rely on some kind of central user, such as a bank, that mints the currency. Centralized currency systems rely on some institution to print, monitor and distribute the currency. This leads to a single institution holding responsibility for the medium of exchange used by millions of people. A decentralized currency is money that is directly transferred from the sending party to the receiving party without any one, bank-like entity needed to verify the transaction and control counterfeiting. This currency does not have a single creator and monitor but many creators and monitors. This concept poses new problems. Without a centralized regulator how is the currency going to get created? How is the currency going to be verified as authentic and not counterfeit? On that note, we move to the more recent history of decentralized electronic currency and Bitcoin. The first digital cash system set up was created by David Chaum with the founding of DigiCash in 1990. The innovation involved was the use of cryptographic protocols that allowed privacy with transactions. Chaum invented among many other things important signature systems and anonymous transaction protocols that would be important for the foundations on which Bitcoin rests. DigiCash went bankrupt in 1998. The assets of DigiCash were sold to Ecash in 1998. Also, Wei Dai with his digital cash system called “b-money” and Nick Szabo with his concept “bit gold” enhanced understanding of digital currency. These two systems also had large impacts on the emergence of Bitcoin. The idea of having users compete to solve proof-of-work problems was outlined by Szabo. In the next section this will be described further with a description of mining.
1 Currency has evolved over time from commodity money to representational money to today’s fiat currency 2 Digital currency is currency that is exchanged electronically while scrip is something that acts as currency but is not considered legal tender 3 Centralized currency has a controller that handles counterfeiting and minting while decentralized currency has no direct manager 4 David Chaum, Wei Dai and Nick Szabo all influenced Bitcoin by pioneering technology and innovations that had direct contributions to the Bitcoin network 6
History of Bitcoin
Who is Satoshi Nakamoto? Satoshi Nakamoto is the creator of Bitcoin. Besides his attachment to Bitcoin there is no trace of him anywhere else. Satoshi Nakamoto is the pseudonym of the creator of Bitcoin. This individual, or possibly group of individuals, is shrouded in mystery. Many think he is a genius, an innovator of our time and someone who has initiated the next evolutionary step in currency. But there are many more that think opposite. Others think he is a crook, the evil genius that is hiding away from the public guilty of making the biggest Ponzi scheme of our time. There are no middle ground opinions on Satoshi Nakamoto, just praise or hatred. We do not know who or where Satoshi Nakamoto is but we can get a sense of the ingenuity he possesses through his online posts and management of the Bitcoin protocol. This elusive image captures the imagination of maybe some scoundrel; maybe someone who felt he had to hide from the world for his conceived future impact on currency and government central banks or maybe just someone who did not want too much attention from the world. In any case we have his invention and a massive tribute must be paid to this brilliant creative force that has captured imagination, granted never-experienced shock to economists and given hope to the ultimate separation of state and economics. In talking about his intentions, Nakamoto wrote the following from “Bitcoin: A peer-to-peer Electronic Cash System” now known as The White Papers published in 2008: “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the doublespending problem using a peer-to-peer network.” We will see that the intention behind Bitcoin is exactly what it has so far achieved.
1 Satoshi Nakamoto is the pseudonym for the individual that created and initiated the start of the Bitcoin protocol 2 There are wide differences of opinion on Satoshi Nakamoto 3 Satoshi Nakamoto wrote “Bitcoin: Peer-to-Peer Electronic Cash System now known as “The White Papers” 4 Through “The White Papers” Nakamoto outlined the Bitcoin protocol
What makes Bitcoin attractive?
The most notable reason for the growth of Bitcoin usage and the willingness to take the risk with using the new digital currency is the failure of large banks and distrust for the predominance of central banks. These large banks hold complete control of the money supply and the largest bank is the central bank. Mainly, it is the idea of separation of state and economics that makes Bitcoin attractive. The currency allows many that have lost faith in the fiat currency’s store of value property. Bitcoin competes with fiat currency and satisfies demands for a good currency better than fiat currency in many ways. This is one reason digital currency can be determined to be an evolutionary economic advancement towards a better currency. The store of value is not the only aspect. Digital currency also provides a better distributed medium of exchange by allowing easy world-wide transactions. Bitcoin is considered as the ultimate replacement of the medium through which the medium of exchange of fiat currency is handled. Privacy is another valuable thing offered. A user can have an address for storing Bitcoins that is very difficult to trace back to the name of the address owner. Unlike a bank account, Bitcoin provides an anonymous way to receive or make payment for some value offered. The recession-proof nature allows those that have seen government distributed currency decrease in value the option of getting protection for their money. Individuals work hard for their money and rely on money as a modern survival mechanism and it is terrifying to imagine all your hours at work wasted by economic irresponsibility and idiocy on the part of government. This very rational fear drives pioneers in the Bitcoin community. With these reasons we see why there is a demand for an alternative currency. Now with an analysis we will see why there is a growing demand for Bitcoin.
This is all currently in rewrite.
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The book is best donated to anyone that wants to read it. I could publish it on amazon or something but I'd rather the book just be free and accept donations at this point and that's besides the point. If you don't mind that users send a copy to their friends, why don't you provide a link to directly dowload the book without emailing you? Just add it to a Drive file, adjust the settings for a shared file, copy the link and paste it here. You have to prove the ownership of the Book dude. My name’s Travis Batterson and I was born in Jackson, Michigan where I have an associate’s degree. I wrote a book on Bitcoin in 2013 when I was 21 and attached is a free copy. I stand for libertarian ideals and the accomplishment of the end of the war on drugs, a flat tax only at the point of sale and several other ideals that I believe will help many people.
I found social media profiles named Travis Batterson. Are those your real profiles : https://www.linkedin.com/in/travis-batterson-3849a7149/https://www.instagram.com/battersontravis/?hl=enhttps://www.pinterest.com/travisalanbatterson/_saved/https://www.facebook.com/profile.php?id=100073904072275Donation: 35jvU8P98ZuuhMzdciGUE9HM1XfegSLMSs
Didn't you thought about selling the book instead of waiting for charity? If you are sure it's a quality book, i except many will be intrerested to reserve a copy.
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It meets all four qualifiacations to be a currency so yes, it's a currency. Here's the first chapter of my book:
What is Bitcoin? Before we start analyzing Bitcoin and its growing prevalence as a currency we look at two things. The first is the concept of currency. Also, it is necessary and interesting to complement the new economic evolutionary step with the context of history. Now we will touch on these subjects very briefly. What is Currency? Money satisfies general human demands. It is used as exchange for goods and services. Money has specific uses that qualify it as money and there are three that will be considered here. A medium of exchange is something used for buying and selling goods and services. Labor is something that is sold and productive work is the foundation for a good economic system. When you work you do something valuable. You can supply a service such as dentistry, clerical work at a retail outlet or act as a mover. Or you can produce a good that can be put into a market and sold, such as this book. In any case, you work and are supplied something valuable for your time. If you work for a fast food outlet, say, you do not want to be given cooked food as compensation. You want something that can be used to satisfy desires for other goods and services at your discretion. Thus, you are given currency and this currency yields and represents the value of the labor you sold and allows you to buy something else you find valuable. Therefore currency acts as a medium of exchange. Money is used as a unit of account as well. A dollar, although just a piece of paper, gives individuals a relative measure of worth. If you go to a store with a dollar and look for things to buy you get an idea of the worth of everything in dollars. If you are offered three-hundred dollars for a week’s worth of work you then judge your willingness to do that work based on the unit of account by gauging it from the reference point that money provides. One more thing to discuss here is how money acts as a store of value. If you are given a hundred dollar bill, throw it in a safe and keep it there for a week the money will still be worth a hundred dollars. The value of that hundred dollar bill retains its value for future spending allowing individuals to save the value. The value of a dollar bill alters with time through alterations in purchasing power and government action. Governments can easily increase the money supply. Expanding the money supply will reduce the value stored in all units but will provide governments with money that is not based around original production and value offered. This notion is important later on to understand why e-currencies like Bitcoin grow in popularity.
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Hello, email me for a free copy and send it to your friends email: travisalanbatterson11@gmail.com In this book I’ve provided information about both the computer science and mostly the macroeconomics of Bitcoin and its broader implications. My book starts with a simple question that’ll explain to most readers what makes a good currency. Currency is defined by four things among them the ability to divide it into parts. Bitcoin can be more precise than federal reserve notes. In order to send money across the world in the US it has to go through an intermediary financial institution. Bitcoin doesn’t require these institutions. Money is represented by something scarce. No one can create a Bitcoin, Bitcoin can only be earned through mining meaning a continual and predictable growth of the currency supply. Mining is using computer power to solve hashes that grow or decrease in difficulty. This computing power is used to verify transactions on the blockchain and the reward is Bitcoin. Every ten minutes a reward is issued, and the difficulty of the target will increase or decrease in order to average about 10 minutes to solve a block. My name’s Travis Batterson and I was born in Jackson, Michigan where I have an associate’s degree. I wrote a book on Bitcoin in 2013 when I was 21 and attached is a free copy. I stand for libertarian ideals and the accomplishment of the end of the war on drugs, a flat tax only at the point of sale and several other ideals that I believe will help many people. Being a libertarian is about believing mainly that no one should be incarcerated for victimless crimes. Bitcoin has its advocates and its fair share of people who are skeptical. Those that read my book at the end of the day will realize that Bitcoin is here to stay for a very long time and has remained the ring bearer for digital currencies since I wrote about it in early 2013. Donation: 35jvU8P98ZuuhMzdciGUE9HM1XfegSLMSs
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