BWJ 008: Hashrate Recovery Miracle; Revolution Signals Synthesised; Common Crypto Pitfalls; and more...
This week: How impressed should we be by the Bitcoin network resilience? What can history teach us about our future? Why is it important to listen to sound advice as beginners?
Hashrate Recovery Miracle
How impressed should we be by the Bitcoin network resilience?
One of the common fears of people when it comes to Bitcoin adoption is that it will disappear… What if I buy and it gets switched off? Can’t someone just kill it? How can I be sure it will work? As a new form of money it’s inevitable that these misgivings persist, but what we’ve witnessed these last few months, is enough to put them to rest forever.
China’s latest ban on Bitcoin mining meant that around 50% of the hashrate went offline, that is to say half of the computing power facilitating the network disappeared, theoretically putting a huge strain on performance. Not a fair analogy per say, but just imagine if half of the factories in your supply chain suddenly closed, the engine room of your operations would be decimated and normal service would simply not be possible.
As hashrate returns to nearly all time highs, not only do we have unequivocal proof that the Bitcoin network is incredibly resilient, but we must marvel at the fact the service it provides to users everyday wasn’t in the slightest effected. Equally one should note the importance of the continued decentralisation trend, with Bitcoin mine operators seeking friendlier jurisdictions, serving to further secure the network. (I host a telegram group Bitcoin Mining Australia with at least 1 member relocating from China to Australia)
Revolution Signals Synthesised
What can history teach us about our future?
Zooming out from our everyday lives can be hard, especially in the smart phone era of today, in which we are bombarded with information from dawn until dusk. I would urge you to take the time to listen in on this wonderful conversation however, “Revolutionary Cycles Converging”, with Mark Moss and John Vallis.
Moss’ core premise is a reflection on financial, political, and technological cycles; which play out over recurring periods of time. It’s an analysis which is clearly very well researched, helps decipher the macro scenario we find ourselves in today, and highlights well the unprecedented convergence of all three cycles right now.
I particularly like the insight that the battle ground is really “collectivism versus individualism”, a phenomenon common throughout human history, and that today we’re witnessing “peak collectivism”. This in turn will lead to a rebound in the opposite direction, with the decentralisation of society, and individualism becoming more prominent; this is a future of course enabled by the financial, political, and technological innovation that is Bitcoin.
Common Crypto Pitfalls
Why is it important to listen to sound advice as beginners?
Bitcoin was only invented 12 years ago, and although there were plenty of attempted digital currencies prior, I believe it’s safe to say there are very few people out there who are considered experts in the space. Guy Swann and Stephan Livera are however two people I thoroughly enjoy learning from, and this conversation “What Makes Bitcoin A Breakthrough (Newcoiner episode)”, does a great job of teaching beginners why Bitcoin is so important to learn about first.
I too have made plenty of mistakes on my journey to Bitcoin, such as when I invested £2k in an ICO back in the 2017 bull market, lured in by the promise of a decentralised platform for funding renewable energy projects. Unsurprisingly in hindsight, the product they promised to build never materialised, and Donny the business development lead I’d been speaking to stopped responding to emails…
We all have battle scars from mistakes made in the past, and these kind of conversations are so important to ensure your hard earned money doesn’t end up in a scam, deciphering the signal from the noise. So remember, do your own research, and build a team of mentors you can trust.
“We’re so bloody early”
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