Bitcoin: A Revolution In Digital Data
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Bitcoin is commodity money, but to be a commodity it must first have a value in itself. So, how is Bitcoin valuable outside of being a speculative digital currency?
Satoshi Nakamoto intentionally & intelligently designed Bitcoin as a commodity. The difference between a commodity & a security is that commodities are ‘common’ to everyone & their value is often related to the amount of time & energy required to refine it, whereas securities are issued & have their value ‘secured’ by the central entity/authority that issued them. If a central source issues something it means there is a central point of authority, control & ultimately failure.
Satoshi Nakamoto realised that any form of digital creation is man-made. Therefore, it can be made by anyone, anywhere at any time giving digital currencies an infinite supply, which implies they have a fundamental value of absolute $0. This is the paradox that Satoshi Nakamoto solved by creating Bitcoin as a digital commodity.
How Bitcoin was created as a digital commodity…
First, the Bitcoin White Paper was posted to a cryptography mailing list on 31st October 2008. The paper was freely available to all who saw it. The code was open source & everyone had a chance to study it. The pseudonym Satoshi Nakamoto was first to bring the Bitcoin network into existence two months after the White Paper was initially released and mined the Bitcoin genesis Block on 3rd January 2009. Satoshi Nakamoto then implemented & released the first bitcoin client software on 9th January 2009 and the world’s first bitcoin transaction took place 3 days after on 12th January 2009.
Because the White Paper was released to the world under a pseudonym and the chance was provided to anyone & everyone who saw it, to start it, it cannot be said that there was a central point of authority who issued it. This then gave the opportunity for the network to grow without any central point of authority or control since its inception, which is where the fundamental value in Bitcoin lies as it is this that cannot simply be replicated overnight & is unique to Bitcoin.
As the Bitcoin network uses what is called a “Proof of Work” (POW) consensus algorithm, it means that any central point of authority and control of the network becomes increasingly diluted over time as the network grows & scales. This is because the network becomes more & more decentralised & distributed over time as those who support the network continually compete with one another for a share of its ever-increasing hashrate that brings economic rewards.
Since any central point of authority and therefore failure diminishes further over time it creates a network of increasingly secure, immutable data. It’s this source of immutable data that can only be produced by the use of Bitcoin that makes Bitcoin a commodity.
Blockchain is an infinite mathematical sum meaning it has infinite data storage capabilities. This means the value of the Bitcoin network is determined by its transaction cost, scale & speed, which is why every effort is made to continually reduce transaction costs and increase its scale & speed capacities.
The entire world now runs on digital data (records are no longer kept on pieces of paper & stored in filing cabinets). Bitcoin, for the first time in history, allows immutable digital data to be stored on a decentralised, distributed single ledger and be legally owned by individuals through their private keys.
Very soon the entire world will run on Bitcoin as digital data is too precious to lose. In future, the idea of uploading precious family photo’s & wedding videos to a server owned & controlled by a corporation that could simply delete them on a whim will seem preposterous. Corporations e.g. Financial Corporations who spend millions if not billions on securing their data now have an infinite source of immutable data available to them. This is why Bitcoin will bring a revolution in digital data.
Data is uploaded to the Bitcoin Blockchain with microtransactions paid in Bitcoin & it is this solution to micropayments that Satoshi Nakamoto ultimately solved with Bitcoin.
The only source of immutable data for the world is the Bitcoin protocol that Satoshi Nakamoto defined in the Bitcoin White Paper as “Bitcoin: A Peer-to-Peer Electronic Cash System”. This protocol named Bitcoin Satoshi Vision is known as Bitcoinˢᵛ & has the ticker symbol (BSV).
To understand why the Satoshi Nakamoto’s Bitcoin protocol is known as Bitcoinˢᵛ & has the ticker symbol BSV read my Medium article titled: “Bitcoin: A Tail of Blockchain BTC/BCH/BSV” linked here — https://medium.com/@sirtoshitv/bitcoin-a-tail-of-blockchains-x3-eebb136457c7
Satoshi Nakamoto had a vision. That vision was Bitcoin. Bitcoin is Satoshi’s Vision. Bitcoin is BSV.
“You can overcome your distaste for CSW at $100 BSV, at $1000 BSV or at $10,000 BSV. It’s up to you” — Ruth Heasman
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