Tuesday, November 5, 2024

USA Elections 2024 and Bonfire Night in the UK: A Night of Democracy, History, and Anticipation For Bitcoin

November 5, 2024, is shaping up to be a night of high energy and deep significance on both sides of the Atlantic. In the United States, millions of Americans are heading to the polls to vote in a critical presidential election. At the same time, in the United Kingdom, people are gathering to celebrate Bonfire Night, or Guy Fawkes Night, with fireworks and bonfires. While these events are distinct in purpose and tradition, both involve themes of civic engagement, historical reflection, and the power of the people.

USA Elections 2024: The Stakes Are Higher Than Ever

In the United States, the 2024 election has captured global attention with a rematch that’s as polarizing as it is consequential. Voters are choosing between Donald Trump, who has mounted an unprecedented return campaign, and Vice President Kamala Harris, who represents continuity from the current administration. This election is not just a contest between two individuals; it reflects broader ideological divides within the country, from economic policies to healthcare reform to the United States' role on the world stage.

Donald Trump’s campaign has emphasized a return to his brand of economic populism, and border security, and promises to “drain the swamp” in Washington. His supporters view him as a champion of the working class and a force against establishment politics. Trump’s campaign has also centred on deregulatory policies, pledging to free businesses from perceived governmental constraints to foster economic growth. He’s taken a hard line on immigration, pushing for stricter policies and promising to restore "law and order."

Kamala Harris, on the other hand, has focused on continuing the policies she supported as Vice President, such as affordable healthcare, climate action, and progressive social policies. Her campaign has emphasized unity, justice, and inclusivity, appealing to a broad coalition of young voters, minorities, and moderate Democrats. Harris has also made history as the first woman of colour to serve as Vice President, and if she wins, she would become the first female President in U.S. history—a milestone with enormous symbolic and practical impact.

The outcome of this election will shape the United States for years to come, impacting both domestic policy and international relations. The world will be watching as swing states tally their votes, and communities across the U.S. hold their breath in anticipation of the results.

Bitcoin and the Future of U.S. Financial Policy

One of the unique issues in this election has been the role of cryptocurrency, particularly Bitcoin, in the American economy. Digital currencies have gained popularity as both an investment asset and a potential alternative to traditional banking systems. Each candidate has a different stance on how the U.S. should engage with Bitcoin and other digital currencies, which could impact the future of financial policy and the economy at large.

Donald Trump has been vocal in his scepticism of Bitcoin and cryptocurrency in general, often warning of its potential risks and volatility. He has argued that cryptocurrency could undermine the U.S. dollar and facilitate illegal activities. A second Trump administration might push for stricter regulations on digital currencies to protect traditional banking and national economic stability. This could lead to policies that discourage or even restrict Bitcoin use, potentially limiting the growth of cryptocurrency markets within the U.S.

Kamala Harris, however, has taken a more open-minded approach to digital assets, considering cryptocurrency as an area ripe for innovation. While Harris has not fully endorsed Bitcoin as an alternative currency, she has signalled a willingness to work with blockchain experts and has proposed regulations that balance innovation with consumer protection. If Harris were to win, it’s possible that the U.S. would adopt a more supportive stance on cryptocurrency, integrating it more fully into the economy and even exploring a government-backed digital dollar, as some other countries have done.

Bonfire Night in the UK: A Celebration of Democracy and Tradition

While Americans are casting their votes, British people are marking Bonfire Night, a beloved tradition with its own unique historical significance. Also known as Guy Fawkes Night, Bonfire Night commemorates the failed Gunpowder Plot of 1605, when Guy Fawkes and his co-conspirators attempted to blow up the Houses of Parliament and assassinate King James I. The plot was foiled, and the king survived, leading to annual celebrations of the monarchy's preservation and, over time, a broader reflection on British governance and unity.

Across the UK, communities come together to celebrate with firework displays, bonfires, and the burning of effigies of Guy Fawkes. Families gather in parks and back gardens to enjoy seasonal treats and watch the skies light up with bright, colourful displays. For many, Bonfire Night is a reminder of the long-standing democratic traditions in Britain and the importance of protecting freedom from the threat of violence and tyranny.

Bridging Two Worlds on November 5th

Although separated by geography and purpose, the events in the United States and the United Kingdom on November 5th are bonded by themes of history, tradition, and civic duty. For Americans, this election represents a chance to set a new direction or reaffirm a previous path, with the future of the economy, the climate, healthcare, and more hanging in the balance. For Britons, Bonfire Night is an opportunity to celebrate their rich history and the triumph of democratic ideals, while remembering that political engagement is as crucial today as it was in 1605.

Both the election and Bonfire Night evoke a shared spirit of community and collective action. While Americans await the final vote tallies, the skies over the UK will be filled with fireworks—a reminder that democracy, in all its forms, remains a powerful force for unity and progress. This November 5th, as votes are counted and bonfires are lit, the world is reminded of the enduring importance of people-powered change, from the streets of Washington to the parks of London.

Tuesday, August 20, 2024

The Bitcoin Network: A Five-Star Financial Institution That Never Sleeps

Introduction

In the evolving landscape of global finance, the Bitcoin network has emerged as a revolutionary system challenging traditional banking norms. Often likened to a five or even six-star rated bank, Bitcoin offers unparalleled reliability, accessibility, and trustworthiness. Unlike conventional banks, which are bound by geographical, temporal, and institutional limitations, the Bitcoin network operates incessantly, ensuring seamless and secure transactions worldwide. This essay delves into the attributes that position Bitcoin as a superior financial system, outlining five key reasons supported by examples and comparing it to traditional banking structures.

Five Reasons Why the Bitcoin Network Mirrors a Five-Star Bank


1. Decentralization Ensures Unparalleled Reliability
   
   - Explanation: The Bitcoin network operates on a decentralized ledger known as the blockchain, which is maintained by a distributed network of computers (nodes) worldwide. This structure eliminates a central point of failure, making the system remarkably resilient against outages and attacks.
   
   - Example: In contrast to traditional banks that may suffer service disruptions due to technical failures or centralized attacks, Bitcoin has maintained near-continuous operation since its inception in 2009. Even during periods of intense network activity or attempted cyber-attacks, the decentralized nature of Bitcoin ensures that transactions continue to be processed without significant delays or failures.

2. 24/7 Accessibility Facilitates Continuous Financial Operations
   
   - Explanation: Bitcoin transactions can be conducted at any time, irrespective of weekends, holidays, or time zones. This constant availability empowers users to manage their finances whenever needed, without waiting for bank operating hours.
   
   - Example: Consider an international freelancer needing to receive payment from a client in another country. Through traditional banks, this transfer might be delayed due to weekend closures or processing times, potentially taking several days. With Bitcoin, the payment can be sent and confirmed within minutes, regardless of the day or time, ensuring prompt access to funds.

3. Robust Security Through Advanced Cryptography
   
   - Explanation: Bitcoin employs sophisticated cryptographic techniques to secure transactions and control the creation of new units. Each transaction is verified by network nodes and recorded on the blockchain, making it extremely difficult to alter or counterfeit.
   
   - Example: Instances of fraud and unauthorized transactions are prevalent concerns in traditional banking systems. However, Bitcoin's security measures have proven highly effective; for example, the immutable nature of blockchain records has prevented double-spending and ensured transactional integrity, fostering trust among users.

4. Transparency Enhances Trust and Accountability
   
   - Explanation: All Bitcoin transactions are publicly recorded on the blockchain, allowing anyone to verify and audit transactions. This transparency reduces the potential for fraudulent activities and enhances accountability within the network.
   
   - Example: In traditional banking, opaque processes can obscure illicit activities such as money laundering. In contrast, Bitcoin's transparent ledger has been instrumental in tracing and investigating suspicious transactions, as evidenced by law enforcement agencies leveraging blockchain analysis tools to track and apprehend cybercriminals involved in illegal activities.

5. Borderless and Inclusive Financial Ecosystem
   
   - Explanation: Bitcoin transcends geographical boundaries, enabling seamless and cost-effective international transactions without the need for intermediaries or currency conversions. This inclusivity opens financial services to unbanked and underbanked populations worldwide.
   
   - Example: Migrant workers often face high fees and long wait times when sending remittances through traditional channels. Bitcoin offers a viable alternative, allowing them to transfer funds quickly and cheaply across borders. For instance, a worker in the United States can send Bitcoin to family in Nigeria almost instantly, avoiding hefty remittance fees and exchange rate losses.

Conclusion

The Bitcoin network embodies the qualities of a five-star financial institution through its decentralized structure, continuous availability, robust security, transparent operations, and inclusive nature. It addresses many of the inefficiencies and limitations inherent in traditional banking systems, offering a modern, efficient, and trustworthy alternative for conducting financial transactions. As the world becomes increasingly interconnected and digitalized, Bitcoin stands out as a resilient and adaptable financial system poised to meet the demands of contemporary society. While challenges and criticisms persist, the fundamental attributes of Bitcoin continue to drive its adoption and integration into the global financial ecosystem, underscoring its potential to redefine our understanding and engagement with money and banking.


[Note: The above was written with input by ChatGPT]

Monday, August 19, 2024

The Bitcoin Power Law: A few simple graphs and tables

In 10 years Bitcoin is expected to increase by at least 600%. This is the “touching cloth” support line according to the BTC PowerLaw:
$50,000 = $300,000
$100,000 = $600,000
$250,000 = $1.4 Million
$500,000 = $3 Million
$1 Million = $6 Million
In 10 years Bitcoin is expected to increase by at least 600%.


If you hold (hodl) your Bitcoin for 10 years, until 2033 then 1 Bitcoin will be no lower than $300,000 USD. This is according to the Bitcoin PowerLaw.
Called the “touching cloth” line… … Here is a 10-year graph (2024–2033) showing the lowest/support line for the Bitcoin price using the PowerLaw.
0-year graph (2024–2033) showing the lowest/support
Called the “touching cloth” line

Here is a table for the next 10 years (2024–2033) showing the lowest/support line for the Bitcoin price using the PowerLaw. This is a conservative way of looking at things.
0-year graph (2024–2033) showing the lowest/support

4-Year graph and table of the Log/Log Bitcoin Power Law. Shows “lowest/support” Bitcoin Price for halving years 2012–2048. This is all you need.


4-Year graph and table of the Log/Log Bitcoin Power Law

4-Year graph and table of the Log/Log Bitcoin Power Law

Inspired by the work of: @Giovann35084111 | @hcburger1 | @dotkrueger | @apsk32 | @math_sci_tech | + others

Tuesday, August 13, 2024

Simple chart 2020 - 2048 (4-Year graph) of the Bitcoin Price Log/Log Bitcoin Power Law

Simple chart 2020 - 2048 (4-Year graph) of the Bitcoin Price Log/Log Bitcoin Power Law 

(All credit goes to the outstanding @Giovann35084111 and @hcburger1


Simple 2020 - 2048 (4-Year graph) of the Bitcoin Price Log/Log Bitcoin Power Law
Simple chart 2020 - 2048 (4-Year graph) of the Bitcoin Price Log/Log Bitcoin Power Law 

Simple 4-Year table of the Bitcoin Price (2012 - 2048) Log/Log Bitcoin Power Law

Simple 4-Year table of the Bitcoin Price (2012 - 2048) Log/Log Bitcoin Power Law 

(All credit goes to @Giovann35084111 and @hcburger1

Simple 4-Year table of the Bitcoin Price (2012 - 2048) Log/Log Bitcoin Power Law
Simple 4-Year table of the Bitcoin Price (2012 - 2048) Log/Log Bitcoin Power Law 

Tuesday, July 30, 2024

Strategic Bitcoin Reserve announced 4 years early

I was expecting an announcement of the Strategic Bitcoin Reserve in circa 2028, not 2024... which means we are 4 years or so ahead of where I was expecting politicians and governments to be in their thinking. In the long run, this is a net positive outcome for everyone.

In 2032 I expect the US government to be the largest holder and or miner of Bitcoin in the world. I guess there is a 50/50 chance I am either right or wrong.


Monday, July 29, 2024

7 / 8 months into 2024 (Halving, Bitcoin ETF, FTX Sam Bankman-Fried, and Craig Wright is not Satoshi Nakamoto, Changpeng Zhao (CZ), Roger Ver (Bitcoin Jesus), Ethereum ETF, Mt. Gox repayments, Donald Trump speaks at Bitcoin Conference 2024 Strategic Reserve)

7 / 8 months into 2024 and already these major events have happened:

1. The Bitcoin Halving (reducing supply from 6.25 to 3.125 BTC)

2. The Bitcoin ETF approval in the USA (by the SEC)

3. Sam Bankman-Fried imprisonment (FTX)

4. Craig Wright is not Satoshi Nakamoto (UK judge)

5. Changpeng Zhao (CZ) from Binance sentenced to 4 months in prison (USA)

6. Roger Ver (Bitcoin Jesus) charged with mail fraud and tax evasion, arrested in Spain

7. Ethereum ETF approval in the USA (by the SEC)

8. Mt. Gox begins paying creditors after a decade 

9. Donald Trump speaks at Bitcoin Conference 2024 Nashville announces Bitcoin Strategic Reserve

Ready for the next 4 / 5 months of 2024?...

Friday, June 21, 2024

Bitcoin Improvement Proposal 3 (BIP): Utilization of a Fraction of Bitcoin’s Computing Power for Ransomware Decryption Assistance

Please note, this was written with the help of ChatGPT:

Photo by Michael Geiger on Unsplash

Title: Utilization of a Fraction of Bitcoin’s Computing Power for Ransomware Decryption Assistance

Author: BBCD Satoshi

Status: Draft

Type: Informational BIP

Created: 21 June 2024

Abstract: This proposal suggests the allocation of a small percentage (ranging from 0.01% to 1%) of Bitcoin’s total computing power to assist in efforts to decrypt or mitigate ransomware attacks. This initiative aims to leverage the vast computational resources of the Bitcoin network to support cybersecurity efforts, enhancing the overall security landscape.

Motivation: Ransomware attacks pose a significant threat to individuals, businesses, and public institutions, often leading to substantial financial and data losses. The Bitcoin network’s immense computational power can be partially redirected to assist in decryption efforts, providing a valuable tool in combating ransomware and enhancing public trust in the cryptocurrency ecosystem.

Specification:

Allocation: A designated percentage (between 0.01% and 1%) of the total hash rate of the Bitcoin network will be utilized for decryption efforts.

Mechanism:

  • A system will be developed to temporarily divert a portion of mining power to work on decryption tasks related to active ransomware attacks.
  • Participation will be voluntary, with miners opting in to contribute their computational resources to the decryption pool.

Governance:

  • A decentralized committee or organization will be established to oversee the allocation and ensure the fair and transparent use of computing power.
  • The community will be consulted to determine the specific criteria and processes for identifying and responding to ransomware threats.

Impact on Mining: The proposal will ensure that the diversion of computing power does not significantly impact the overall security and operation of the Bitcoin network.

Rationale: By contributing a fraction of its computing power, the Bitcoin network can play a proactive role in addressing a critical cybersecurity challenge. This initiative can improve Bitcoin’s public image, demonstrating its potential to provide societal benefits beyond financial transactions.

Backwards Compatibility: This proposal does not affect the Bitcoin protocol itself and is compatible with existing mining operations. Participation is optional, ensuring no adverse impact on miners who choose not to participate.

Implementation:

  • Development: Create the necessary software and infrastructure to facilitate the redirection of computing power.
  • Testing: Conduct extensive testing to ensure the system’s security, efficiency, and minimal impact on regular mining activities.
  • Deployment: Roll out the system in phases, starting with a pilot program involving volunteer miners.

Bitcoin Improvement Proposal 2 (BIP): Allocation of Bitcoin’s Computing Power for Health and Medical Research

Please note, this was written with the help of ChatGPT:

Photo by Fusion Medical Animation on Unsplash

Title: Allocation of Bitcoin’s Computing Power for Health and Medical Research

Author: BBCD Satoshi

Status: Draft

Type: Informational BIP

Created: 21 June 2024

Abstract: This proposal suggests donating a small percentage (ranging from 0.01% to 1%) of Bitcoin’s total computing power each month to assist in solving pressing health and medical challenges. The initiative aims to leverage the Bitcoin network’s computational resources to contribute to research efforts such as finding cures for diseases, developing new vaccines, and addressing urgent medical needs during pandemics.

Motivation: Health and medical research often require significant computational power for tasks like simulating biological processes, analyzing large datasets, and developing new treatments. The Bitcoin network, with its extensive computational capabilities, can provide valuable support to these research efforts. By allocating a portion of its hash rate, the Bitcoin community can contribute to global health advancements and demonstrate its commitment to societal well-being.

Specification:

Allocation: A designated percentage (between 0.01% and 1%) of the total hash rate of the Bitcoin network will be donated to medical research initiatives.

Mechanism:

  • A system will be developed to temporarily redirect a portion of mining power to support computational tasks for health and medical research.
  • Participation will be voluntary, with miners opting in to contribute their computational resources to the research pool.

Governance:

  • A decentralized committee or organization will be established to oversee the allocation and ensure the fair and transparent use of computing power.
  • The community will be consulted to determine the specific criteria and processes for selecting research projects and responding to medical emergencies.

Impact on Mining: The proposal will ensure that the diversion of computing power does not significantly impact the overall security and operation of the Bitcoin network.

Rationale: By donating a fraction of its computing power, the Bitcoin network can play a crucial role in advancing health and medical research. This initiative can improve Bitcoin’s public image, highlighting its potential to contribute positively to society and address critical global challenges.

Backwards Compatibility: This proposal does not affect the Bitcoin protocol itself and is compatible with existing mining operations. Participation is optional, ensuring no adverse impact on miners who choose not to participate.

Implementation:

  • Development: Create the necessary software and infrastructure to facilitate the redirection of computing power.
  • Testing: Conduct extensive testing to ensure the system’s security, efficiency, and minimal impact on regular mining activities.
  • Deployment: Roll out the system in phases, starting with a pilot program involving volunteer miners.

Bitcoin Improvement Proposal 1 (BIP): Allocation of Bitcoin’s Computing Power for Ransomware

Please note, this was written with the help of ChatGPT:

Photo by Fahim Reza on Unsplash

Title: Allocation of Bitcoin’s Computing Power for Ransomware 

Decryption Assistance

Author: BBCD Satoshi

Status: Draft

Type: Informational BIP

Created: 21 June 2024

Abstract: This proposal suggests allocating a small percentage (ranging from 0.01% to 1%) of Bitcoin’s total computing power to assist in decrypting ransomware attacks, particularly those where the ransom is demanded in Bitcoin. This initiative aims to leverage the Bitcoin network’s computational resources to combat ransomware, thereby improving the overall image of Bitcoin.

Motivation: Ransomware attacks represent a significant threat to individuals, businesses, and public institutions, often resulting in severe financial and data losses. Many of these attacks demand payment in Bitcoin, which can negatively affect the cryptocurrency’s reputation. By dedicating a portion of the Bitcoin network’s computing power to decryption efforts, the community can help mitigate these attacks and demonstrate Bitcoin’s potential to support cybersecurity initiatives.

Specification:

  • Allocation: A designated percentage (between 0.01% and 1%) of the total hash rate of the Bitcoin network will be used for ransomware decryption efforts.

Mechanism:

  • Develop a system to temporarily redirect a portion of mining power to work on decryption tasks associated with active ransomware attacks.
  • Participation will be voluntary, allowing miners to opt-in and contribute their computational resources to the decryption pool.

Governance:

  • Establish a decentralized committee or organization to oversee the allocation of resources and ensure fair and transparent use of computing power.
  • Consult the community to define criteria and processes for identifying and responding to ransomware threats.

Impact on Mining:

  • Ensure that the diversion of computing power does not significantly affect the overall security and operation of the Bitcoin network.

Rationale: By contributing a fraction of its computing power to ransomware decryption efforts, the Bitcoin network can actively participate in addressing a critical cybersecurity challenge. This initiative can enhance Bitcoin’s public image by showcasing its ability to provide societal benefits beyond financial transactions.

Backwards Compatibility: This proposal does not alter the Bitcoin protocol and is compatible with existing mining operations. Participation is optional, ensuring no adverse impact on miners who choose not to participate.

Implementation:

  • Development: Create the necessary software and infrastructure to facilitate the redirection of computing power for decryption tasks.
  • Testing: Conduct thorough testing to ensure the system’s security, efficiency, and minimal impact on regular mining activities.
  • Deployment: Implement the system in phases, starting with a pilot program involving volunteer miners.

https://bbcdsatoshi.medium.com/bip-allocation-of-bitcoins-computing-power-for-ransomware-decryption-assistance-291b65df077b


Thursday, May 30, 2024

When will Bitcoin be $1,000,000?

Screenshot from YouTube (https://www.youtube.com/watch?v=xL7aTmIrx6gwith Fred Krueger (@dotkrueger) and @apsk32 about the potential dates for Bitcoin reaching $1,000,000 sometime between July 2031 and July 2036

[Bitcoin reaching $1,000,000 sometime between July 2031 and July 2036]

https://www.youtube.com/watch?v=xL7aTmIrx6g

Wednesday, May 8, 2024

Could this break the log/log power law for Bitcoin?

The log/log power law governing Bitcoin appears robust. However, could there be a plausible and logical scenario in which this power law is disrupted or abruptly halted? 

Drawing parallels with historical events, such as Executive Order 6102 under the Franklin D. Roosevelt administration, wherein all gold bullion and coins were seized, one might speculate on the potential for a similar intervention by the US Government or Federal Reserve in the realm of Bitcoin. It wouldn't be unfathomable for them to accumulate over 51%—equivalent to 11 million—of all Bitcoins, as well as a majority share in Bitcoin mining capacity. In my estimation, such a scenario is not improbable. 

For instance, if financial giants like BlackRock and Fidelity were compelled to relinquish their Bitcoin holdings and associated assets, or if companies like Riot and Marathon were coerced into nationalizing their Bitcoin mining operations, this could significantly alter the landscape of Bitcoin ownership and control.

Here are some more resources:

USA Elections 2024 and Bonfire Night in the UK: A Night of Democracy, History, and Anticipation For Bitcoin

November 5, 2024, is shaping up to be a night of high energy and deep significance on both sides of the Atlantic. In the United States, mill...