Presentation about Bitcoin
This article is about how over time has changed the basic concept of Bitcoin.
Do I contradict myself?
Well, then, I contradict myself.
(I am large, I contain in itself many different people.)
(Walt Whitman, “Song of myself”)
Perhaps the most constant source of conflict in the bitcoin community is to different ideas about what Bitcoin is and how it should be. Those who tried to build a business with Bitcoin, believing that it is a cheap global payment system, realized his mistake after the events of the units in 2017. It is not that they were wrong, just their view of the world proved unpopular bitcoin community, and the development of the Protocol was not aimed in the right direction at the right time.
As a recognized leader in Bitcoin missing, people have to rely on documents and the early posts on the forums to decipher the true intentions of Satoshi regarding the currency. This is similar to how the U.S. Supreme court endorses kochanie over the Constitution and is guided by its ancient wisdom for decision-making in the Affairs of the present. Others not engaged in the interpretation of texts, and to conduct a pragmatic analysis of the situation in context.
Thus, the conflict of Bitcoin arise due to the presence of conflicting views about its Protocol. If these views are impossible to reconcile, there are problems. Presentation about Bitcoin constantly changing. Technological development, practical circumstances and events in the real world to form a General idea about Bitcoin. In this article I will try to combine different basic ideas about Bitcoin, raised over the 9-year-old history of his life. The article is based on the magnificent work of Murad Makhmudov and Adam Tasha, which I recommend reading.
The change in the concept
We want to study the distribution of key concepts. We identified seven main ideas that maintain a dominant position in the bitcoin community for a long time. It may not be the most influential concepts, but the basic ideas characterizing the users of Bitcoin.
So, in rough order of appearance:
- A proof of concept of electronic currency. This first basic idea determined the General opinion about Bitcoin when it first appeared. Then cyberpunks and coders was evaluated emerging project and determine if it will work. As all previous digital currencies failed, people need time to verify technical and economic viability of Bitcoin and move on to the broader concepts of the Protocol.
- Cheap p2p payment network. Incredibly popular and convincing idea. Some believe that this is what Satoshi had in mind — a straightforward currency for online transactions without intermediaries. Since microtransactions are a key component of online trading, the supporters of this idea usually believe that low fees and convenience are the main characteristics of this currency.
- Censorship-resistant digital gold. The idea, the opposite of the previous one. Here Bitcoin is considered invulnerable, is not amenable to inflation and the seizure of a storage facility for several generations, which is above the banks and the state. The proponents downplay the significance of Bitcoin for daily transactions, reinforcing its position that security, predictability, and conservatism in design is more important. In this camp we cold put all who believe in the stability of money.
- Private and anonymous currency of the darknet. Bitcoin can be used for anonymous online transactions, in particular, to ensure the operation of the online black market. This fact does not exclude the possibility of the existence of digital gold, as many proponents of digital gold believe that interchangeability and privacy are important attributes of Bitcoin. This idea was popular until the analyzing blackany companies failed to disclose the identity of Bitcoin users.
- Reserve currency for the cryptocurrency industry. Bitcoin plays an important role as the main currency for the industry of cryptocurrency/scriptaction. This view is supported by traders, for which the currency is BTC, and the price of other assets are based on the value of Bitcoin. In addition, this camp will automatically get traders, companies and distributed networks, which store reserves in BTC.
- Programmable common database. This is a more original point of view, which typically means that Bitcoin can handle any data, not only currency transactions. The proponents see Bitcoin as a programmable Protocol that can be used in a larger order. In 2015-2016 there was a popular belief that Bitcoin, in the end, will gain a set of different functions by Saidjanov. This includes projects such as Namecoin, Blockstack, DeOS, Rootstock and some services for the formation of a timestamp.
- Independent financial asset. In this case, Bitcoin is considered strictly as a financial asset, its most important property is the payment of dividends. Here it is not about low or zero correlation indices, currencies and commodity assets, making Bitcoin attractive for a variety of portfolios. Proponents of this idea are not keen on spot transactions, and the impact on the asset. In other words, they want to buy risks, not bitcoin. Bitcoin gets more and more into the existing financial sector, so this concept gained popularity.
On the chart below we have compared the different ideas about their popularity in time.
(The picture is in high resolution)
In this graph we compared the relative impact of each of the seven concepts listed above. The graph shows that the idea of the proof of concept of electronic currency was dominant at the beginning, although p2p payment network and digital gold has also maintained its position at the time. Later Bitcoin as an anonymous currency, darknet gained popularity on the Silk road. This idea will not go away, Bitcoin is still used on the darknet, although there are other alternatives that preserve privacy.
After the invention of the ICO and the development of a broad market alithinou BTC as reserve asset for the larger economy. This became an important characteristic of Bitcoin, particularly during price increases in 2014 and 2017, it is Worth noting that the idea of p2p networks remained popular until mid-2017, when its supporters began to support Bitcoin Cash (some moved on to Litecoin or Doge). However, with the advent of the 2018 network Lightning was seen a new outbreak of enthusiasm about online microtransactions and online payments without a fee.
In 2015-2016 started to gain popularity sydeny. It was assumed that Bitcoin will soon extend its functionality, destroying most alithinou. These extend the functionality of projects like Mastercoin (now called Omni), colored coins, Namecoin, Rootstock, Blockstack and Open Timestamps supported this view. However, it turned out that sydeny difficult to implement, and additional uses of Bitcoin become irrelevant.
After completion of the market trends reduction in the price of Bitcoin in 2014 and 2015, analysts began to reflect on his status as the unique commodity money. In November 2015, Tuur, Demeester issued an investment note titled “How to prepare for the rally of Bitcoin” in which he argued that Bitcoin has unique characteristics of asset portfolios. In the middle of 2016 Burniske and white put forward a serious argument in favor of the fact that Bitcoin is an entirely new class of asset. Analysts pointed out that Bitcoin is not similar to traditional assets and, accordingly, Bitcoin has become a popular means of diversifying portfolios among the far-sighted industry of asset management. Today is a very popular point of view, which is supported by the demand for financial products of interest in Bitcoin for the traditional investor.
The concept of digital gold retains its influence throughout the history of Bitcoin. Today her according to the majority, it has become more popular than the miserable camps of the p2p cash, which collapsed after the emergence of Bitcoin Cash. After many years of strife and internal tensions this idea was supported by the majority. However, not all Bitcoin users are its ideological supporters, and we wanted to reflect this on the chart. Many owners of bitcoins use them to diversify your portfolio, some still use bitcoin to carry out anonymous transactions on the darknet, and supporters of p2p cash again gaining strength after the appearance of Lightning.
Tension and release
If you look closely at the above chart, you notice that some views about Bitcoin completely contradict each other. For example, the transition to a global payment network on the blockchain conflicts with the concept of a digital gold (I wrote about this Spencer Bogart). We have reflected this conflict between the existing views in the following graph.
Serious momentum the conflict scored in 2015 after creating BitcoinXT, although hostile discussions took place long before this event. Later provocations, including Bitcoin Classic and Unlimited, only intensified the conflict, which reached its peak in mid-2017 during the creation of a fork of Bitcoin Cash. During upward trends in late 2017, the fee of Bitcoin rose to an incredible level, so that the ranks of the supporters of Bitcoin Cash is replenished. However, since the Commission has diminished and the need for large blocks seems not so urgent.
In addition, at the beginning of 2018 started the implementation of Lightning, the opportunity to conduct micro-payments in the Bitcoin network. Thus, the tension eased, and both the camps concentrated on their own purposes. In 2018, the optimism regarding the payments of the second level was revived, and we have noticed an increasing interest in cheap payments with Bitcoin.
From this analysis, you can make an interesting conclusion: Bitcoin is going through a rare stage of relative harmony. A single overriding concept does not exist, but the idea of digital gold today is the most influential. Civil war 2015-2017 ended a fork of Bitcoin Cash and migrations to other camps p2p duties, including Litecoin, Dash and the Nano. Today, the tension eased and we found ourselves in the unusual quiet epoch in the history of Bitcoin. From a subjective point of view it seems that in this relatively quiet time of development will be faster. Endless war in social networks, between the conferences and the creation of dubious forks undoubtedly complicated the work of the developers. However, on the horizon is a new conflict.
As can be seen from the graph above, anonymous and versatile presentation about Bitcoin (a popular camp digital gold) is in conflict with financialservices transparent version of Bitcoin that is becoming increasingly popular. Those who want to see Bitcoin as a financial asset, the desired compliant with AML/KYC Bitcoin, they are paying less attention to security and versatility.
In the end, periods of conflict and peace are equally important. Conflicts help us to understand the position of influential structures, and also serves informative signals about what really think the key players. Under pressure, companies, individuals and developers have to take some away, revealing their true preferences concerning the development of the Protocol.
The sequence of events
We understand that a large part of our analysis is based on our subjective interpretation of the old posts on BitcoinTalk. If you do not agree with this, we are ready to consider alternative opinions. To facilitate subsequent analysis we created a sequence chart of key Bitcoin events that reflect its history. (We also took a harsh interpretation of the price chart 99bitcoins with the notes). We advise you to check our color charts “changing tides” together with the interim scheme given below. Their contrast will help you understand why we made such conclusions.
(The picture is in high resolution)
To create a schedule of changes in views about Bitcoin, we have a basis for the analysis of positions BitcoinTalk, the discussion of Bitcoins most loyal of his supporters, a good look at the history of Bitcoin and memories about basic approaches over the years of its existence. A similar analysis can hold anyone who is interested in Bitcoin for quite a long time.
We do not claim that this analysis reflects the absolute truth. We want the supporters Bitcoin not fond of absolutism and understood that the basic concept in the Bitcoin community have changed over time. And it’s normal understanding of things change as new information becomes available. Tests of purity are unreliable because they imply a lack of evolution. If the supporters of Bitcoin will reflect on your own history, you will likely find that they have evolved over time. In any case, this happened with both of the authors of this article.
Finally, a sensible look at the history of Bitcoin is a mandatory starting point for any attempt to define its essence. It is an ambiguous concept, and proponents of Bitcoin do not have a unified opinion. Bitcoin contains many different capabilities and you need to remind yourself about it.