March 1, 2022

Bitcoin Core Values

Bitcoin Core Values
  • Fixed supply gives a proper measurement, a reference. For example, as a ruler, 1cm is always 1cm; if you change that property, you will not change the object's physical state; you are just making a new reference number that creates instability.
  • Decentralized, anyone can run it at home and be the audit (police) that enforces all the rules that the network runs by. Decentralization provides that no one plays with this measuring tool. Unfortunately, many people mistake decentralization with AUTOMATION; just because something runs by itself does not mean it's decentralized.
  • Trustless, there is no man in the middle to execute a change in ledger transaction. So if I send you something, everyone sees the change and approves it; it's called triple-entry bookkeeping.
  • Proof of Work ensures every "coin" minted is created with hard work, AND make sure no one can change anything because you will need immense work to do it for a short time; you lose more than gain. A system like Proof of Stake, for comparison, is known as interest rates, similar to what Riyad Salameh did, giving Lebanese up to 15% interest, aka STAKING (freeze your money to give you money). Every coin is backed by energy, time, and human capital. Just as you go to work and earn money, it's unfair for anyone, including gov, to have free money.
  • Open-source allows anyone and everyone to investigate the code running, and anyone can run that software by themselves.
  • Difficulty adjustment makes sure the supply schedule of producing (minting/mining) is fixed and predictable, so even if you increase mining power, the schedule of the mined block will stay fixed.
  • Permissionless, no one should prevent anyone from participating on the network (as a transactor, node, miner, etc.). This is a result of trust minimization, censorship resistance, and pseudonymity. Because of decentralization, no one can stop you. You do not need any permission from anyone to open a wallet and receive any transaction anytime, anywhere from anyone.
  • Cryptographically secured, it does not mean decentralization or permissionless it represents ownership. On the contrary, a cryptographic system ensures that what you have access to is proven by code; for example, if you are buying a home and you get a deed, this deed is enforced by the gov; if that gov decides to see this deed invalid, you will not be able to claim it back.

All this combined create a monetary system of trustless, decentralized, self-owned, permissionless system aka Bitcoin. By these standards, no coin can match Bitcoin;