BWJ 016: Ultimate Macro Framework; Settling $45 trillion; Byzantine Generals Problem; and more
Why is it important that we get to grips with historical context & demographics? How fast is Bitcoin growing? How did Satoshi solve the unsolvable?
Ultimate Macro Framework
Why is it important that we get to grips with historical context & demographics?
Make no mistake, Robert Breedlove and Raoul Pal are some of my favourite Bitcoin educators, with this recent discussion nothing short of excellent. I was left with more questions than answers, due to the rich dialogue and depth of insight, always a sign that one’s witnessed a valuable discussion.
Of particular note is the emphasis on demographics as a driver of societal change, specifically the impact of “baby boomers”, who represent an unprecedented explosion in population. The knock-on effects have been far reaching, with both expected and unexpected consequences, throughout our economies.
I also enjoyed the century long historical context that was given, highlighting how we got where we are today, and rationalising many seemingly agenda driven human actions. So where does this leave us? For me it’s summarised nicely by a phrase they used: “all roads lead to Bitcoin…”
Settling $45 trillion
How fast is Bitcoin growing?
This chart from Yassine Elmandjra, without doubt, is of significance. Bitcoin is projected to settle $45 trillion usd in 2021 (yes… $45 trillion!), not only an impressive standalone figure, but a remarkable increase on previous performance.
It remains tough to truly comprehend the significance of this, the idea of exchanging value peer-to-peer, in a digitally native currency. But it’s clear to me that people are not only utilising the technology, but doing so at increasingly fast pace, with larger and large value amounts.
In a week in which the President of the European Central Bank slandered Bitcoin as not being a currency, here are 45 trillion reasons why their opinion could not be more incorrect, highlighting just how out of touch they are. Bitcoin is a monetary revolution, happening very fast, which some people just aren’t ready for….
Byzantine Generals Problem
How did Satoshi solve the unsolvable?
This week I stumbled across a short article, written by Byron Gibson back in 2013, “Bitcoin & the Byzantine Generals Problem”. Taking me only about 7 minutes to read, it packs quite a punch, simplifying nicely the algorithmic problem Satoshi so cleverly solved.
I like that it makes reference to Bitcoin as a “confluence of events”, built on the “shoulders of giants”, with accurate recognition that “some of the most brilliant ideas are simple in hindsight”. This helped me to further understand the design behind this nascent technology, which one can only marvel at, again highlighting the genius of whomever Satoshi was.
I certainly cannot claim to be an expert in Bitcoin design, or to comprehend exactly how ‘proof-of-work’ functions, but with simplified analysis like this I certainly feel more informed. Diving down the Bitcoin Rabbit Hole is a mind-bending journey, which is teaching me about many unforeseen topics, of which distributed systems and consensus theory is a new favourite.
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