From c2c59033091da6de9f83c11743bb2ca3f1db5493 Mon Sep 17 00:00:00 2001 From: flipper Date: Mon, 8 Mar 2021 15:56:30 -0500 Subject: [PATCH] delete readme cruft --- README_cruft.txt | 271 ----------------------------------------------- 1 file changed, 271 deletions(-) delete mode 100644 README_cruft.txt diff --git a/README_cruft.txt b/README_cruft.txt deleted file mode 100644 index 4bbb560..0000000 --- a/README_cruft.txt +++ /dev/null @@ -1,271 +0,0 @@ -the future of bitcoin trading manifesto recycle bin - -"To institute capital controls against OP_ENERGY trade, rather than just seize exchanges (easy), the attacker must control flows of energy and internet traffic globally (hard). In effect, stopping trades in an OP_ENERGY world is as hard as stopping vanilla transfers of value in the current bitcoin world. " - - -With bitcoin now, transacting (sending and receiving) is easy and frictionless. -Rebalancing (trading) is not. -With op_energy you can aquire bitcoin leveraged, long or short, with mere bitcoin. -All that is required for trading bitcoin long or short is the mining network. -The system can operate smoothly without custodial fiat or altcoin exchanges, -or trusted oracles. All that is needed is mining. - -But wait... a billion to a trillion? That doesn't seem like a very good estimate, even for napkin math. How much more energy exactly? - -Bitcoin owners control the bitcoin protocol. Not governments. Not social media. And not miners. - -increases hashrate by increasing transaction demand (trades in addition to value transfer) - - - -The first, less difficult hash, was the genesis block. The second hash -- more recent, more zeros, more difficult -- took about a trillion times as many hashes to find. Each hash takes a little energy. So, if mining was unchanged, the second hash would have taken a trillion times as much energy to find. Due to technological improvements (cpus vs asics), the energy spend didn't grow quite that much. But it still grew tremendously. - - - - -But this hashing thermostat is what keeps bitcoin moving at a steady 4 transactions per second even as, over bitcoin's 12 year life, the energy cost per transaction in kwh increased (napkin math) a billion to a trillion times. - - - - - - - - - - - -Brian Hamlin (the trader known as 123407) -John Mack - - - - - - - - as well as more exotic derivatives such as calendar spreads and condors - - - - - - -he every-two-weeks difficulty adjustment - - - - - - - - - - - - -(fast), difficulty increases and block production cools down. - - -difficulty drops and block production can heat up. - - - - - -Bitcoin transactions are themselves scarce, and this is a key enforcer of - - -Blockchain transactions are scarce. - - -The miners that produce these transactions are paid with transaction fees in bitcoin. - -Bitcoin is scarce because transactions are scarce. -The bitcoin protocol permits one megabyte of transactions, called a block, every ten minutes. - -Many latecomers to bitcoin wish transactions were less scarce. -In 2017, bitcoin was attacked for this reason, by miners and others who wished to coopt the system. -The attack failed. -Transactions will stay scarce forever. -Because this is what underpins the scarcity and value of bitcoin. - - - - - -This block size limit was the cause of a bitcoin civil war, where bitcoin was attacked by miners who - - - - - - - - -One megabyte every ten minutes is not a lot, for the amount of value that moves through bitcoin. - - - - - - - -If the money system of the world switches to bitcoin, as bitcoin maximalists believe, this will make bitcoin incredibly precious. Its value is fundamentally pegged to the cost of base layer blockchain transactions. - - - - - - - - - - - -same speed no matter how much - - -ten minjutes per block. - - -forces block production to conform to the ten minute window. - -Hot and cold is not a metaphor. Real energy, and lots of it, is being regulated by the difficulty adjustment thermostat. - - - - -confirming transactions at ten minutes per block, no matter how much energy is going into collecting transaction fees. -OP_ENERGY is a proposed bitocin protocol change that translates the ongoing evolution of the bitcoin difficulty adjustment into a financial product: -derivatives of the price of bitcoin in energy-expensive hashes, which can be speculated on peer to peer, without trusted third parties, using pure bitcoin. - - -difficulty is the thermostat that keeps the speed of mining at ten minutes per block - -What does a thermostat regulate? - Temperature. - -The future of bitcoin markets is OP_ENERGY trading - - - - -*** - -*Hashes measure energy* - -Embedded in the bitcoin blockchain is a measure of the energy cost of mining. - -By measuring the hash cost of a satoshi, the bitcoin protocol can host trades of energy futures and options using standard bitcoin transactions. - -*** - -* Trade energy futures, not shitcoins * - -Fiat isn't real, and neither are shitcoins. So why is most bitcoin trading volume done with them? - -Energy is real. A functional financial system trades real things. - -OP_ENERGY transitions bitcoin to the central position of financial system in the post-fiat world. - -*** - -* Security against 51% attacks as the block reward dwindles * - -If OP_ENERGY trading gets popular, this be would be a massive increase in lightning transactions. This translates to higher fees for miners, higher hashrate, and security against 51% attacks. - -As an added bonus, the bitcoin price in dollars would also go up (as long as dollars still exist). - -*** - -* No surveillance risk * - -With coinjoin and other privacy enhancements, bitcoins can be owner-obfuscated before trading if desired. In fact, energy trading will help bootstrap better privacy for all bitcoin users by providing a large, economically incentivized anonymity set: traders who value their privacy. - -*** - -* No counterparty risk * - -Tired of hacks and exit scams? OP_ENERGY doesn't have them. - -*** - -* No escrows. No oracles. Just bitcoin. * - -Just a single new opcode addition to bitcoin script is required - - -********** - -Powered by lightning and the bitcoin script - - - - -00000000000000000000 - - - - - - - - -junk -Bitcoin was made to trade energy -, namely the hashrate and the block reward -Satoshi nakamoto invented bitcoin to wake humanity up to this fact. (that fiat isnt' real) -This enables smart contracts for energy derivatives, on chain. -The future of bitcoin exchange is not on an exchange -OP_ENERGY start_block finish_block returns the cost in hashes to mine a satoshi in this span of block, as measured by the blockchain. - -real vs mathematical, physical vs virtual - - - Fuel is physically scarce. Transactions are virtually scarce. - - Miners might believe they could make more money if transactions were less scarce. -The block size limit might be raised some day for technical reasons, but it won't be raised much. -The limit is one block every ten minutes, with one megabyte of transaction data per block. -This amounts to - - - "Nobody can give you freedom. Freedom is something you take." (Malcolm X) - - -and "smart contract" blockchains - - - - - (1 opcode) that translates the ongoing evolution of the bitcoin difficulty adjustment into a financial product: - - - -Governments, financial services corporations, environmentalists and social justice warriors may tolerate bitcoin. Let's be real. A lot of powerful interests are threatened by bitcoin. If bitcoin keeps growing, they aren't getting out of the way without a fight. - -(also competing cryptocurrencies / smart contracts) - -The enemies of bitcoin have many tools and stregies. Legal, financial, propaganda and even kinetic means may all come in to play. - - -Thus hashpower and mindshare that could be securing bitcoin against a 51% attack is squandered on competing systems that weaken and undermine bitcoin and reduce the wealth and political reach of supporters of bitcoin. - - -Thus hashpower and mindshare that could be securing bitcoin against a 51% attack is squandered on competing systems that weaken and undermine bitcoin and reduce the wealth and political reach of supporters of bitcoin. -Hashpower and mindshare that could be working against state confiscation of private funds (eg by 51% attack) is squandered on competing systems that weaken and undermine bitcoin and reduce the wealth and political reach of supporters of bitcoin. - -Bitcoin is best defended against the possibility of a 51% attack by making it easy - - - -Bitcoin critics say bitcoin uses a lot of energy. And they're right. This energy spend underpins both bitcoin's security and it's scarcity value. - -, along with risky back alley deals, (to circumvent deterrents to trade) - -Privacy conscious traders have turned to altcoins and smart contract platforms to circumvent these restrictions. But these bitcoin alternatives are also vulnerable to denial of service due to their large blocks, centralization of validating nodes, and many other reasons. Hashpower and mindshare that could be working for bitcoin -- everyman's best defense against wealth confiscation -- is squandered on competing systems that weaken and undermine bitcoin and reduce the wealth and political reach of hodlers. - -Mike Klein (quantitative consultant) - -