The Bitcoin Representation

[Gem]

Full disclosure and disclaimer: I own Bitcoin and this thread is not for financial advice.

An objective financial analysis of Bitcoin based on accepted economic metrics reveals that Bitcoin's value as an asset is incredibly high. This is verified by analyses conducted by leading investment firms Fidelity, Ark Invest, Grayscale and others who conservatively value 1 Bitcoin at USD100K, at least. I thought these guys are nuts, but I started to do a deep dive into it, and as I went down the crypto rabbit hole, I realised Bitcoin is priceless.

Of course I then bought my Bitcoin.

What follows is my rationale for why 1 Bitcoin is worth not just the already incredible valuation of say 100K, but millions upon millions of dollars to long term hodlers.

On the surface, Bitcoin's asset value comes from the fact that it is scarce - there will only ever be 21M coins; it is transportable - you have an online wallet on your phone; and it can't be confiscated by officials - it is decentalised blockchain ledger code. Those fundamentals make Bitcoin a safe store of value and is how they arrive at over 100K valuation. However, there is something that standard analytics do not account for - and that is what Bitcoin represents. It's representional value is akin to a great work of art such as the Mona Lisa or a Van Gogh, and it is that symbolic status and cultural significance that makes Bitcoin incalculable in dollar terms.

Is there a symbol that captures in itself the essence of the digital age? Think about it. What article of ownership exists now that captures the culture of the digital revolution. What single reference of ownership expresses that feeling, holds the emotion of it... words can not express that captured essence which I yearn so to express.

Bitcoin. Not the 'money of the internet' as it is called, but the encapsulated meaning of the era in its most apt ownable form.

The similarities between Bitcoin and priceless art is uncanny, not in form, but in function. Priceless art begins with the story of the artist - or it is preserved form an ancient era. The 'artist' who created Bitcoin is known only by his username, Satoshi Nakamoto. This so perfectly represents internet culture. The 'real person' remains unknown since we use pseudonyms to protect our identities. This shroud gives Bitcoin an air of mystery, and long into the future people will still be asking 'who was Satoshi Nakamoto?'. He will be remembered (and already is) as a genius because his accomplishment was so truly remarkable; and as a revolutionary who subverted something so fundamental it only exists in realms of ideology. It becomes so apparent as the world transitions to digital currency that Satoshi's legend will be eternalised. Because he is unknown, he will be remembered as myth and the story of the man behind the creation promises to be among history's most compelling.

This is where the intangible value case for Bitcoin lies. It has the most intruiging backstory, it represents an era, it re-conceives money and it revolutionises ideology. It's really something, and since diving down this rabbit hole, I feel as if I own something so spectacular that only the wildest of imaginations could comprehend its intrinsic underlying worth.

Hello Gem,: )

The devils advocate here,you have one foot in the door.
Don't you see the attachment?
I am is in two minds.
And in that and commiserations,
I am sorry.

[Gem]

Here is a short documentary that captures the dream, the imaginable potential, the way it evolves without being controlled

https://www.youtube.com/watch?v=DA49Dh1-NPY

[PsyKeys]

It's possible, you have a deep perception, mine is quite shallow given how little I know about the inner workings of bitcoin, but perhaps not shallow, taken that I have some knowledge about the world, institutions and people. Bitcoin creates a more integral security for money. But bitcoin is still too young, its in a pool of potential. And the way it works side by side with computational power, is to source and route computational power to produce tech based solutions to businesses. I'm with it because I think that a lot of institutions of fields are too dense and information rich, i.e. law. And so we need tech based databases (libraries) and a.i. to be able to search for solutions faster.. It's funny cuz its like, the invention of the calculator. We no longer preform everything by hand and memory and the force of attention, or to wait for ideas, mistakes and epiphanies. But P probably does not = to NP. A.i. driven law for example would still be 2 computers against each other with the spirit of the opposing lawyers. If you imagine computation as calculations and pathways to solve problems of the "what if" which is by or within the means of current legislation unchanging, then it may even make cases longer than usual. P=NP is about how fast you can solve problems. I think while bitcoin is hard to decrypt it will always remains possible to decrypt. It would just need to be super complex. As far as Im aware mining bitcoin helps create solutions towards its integrity? Oh yes, because the transactions are not even recorded after the calculation is made to produce the encryption, or rather the calculation (algorithm is complex). So what I'm learning and realizing now is that, we want our currency to be unpredictable. Because its by observation that people corrupt things. Ah. Privacy.

Problems that arise are within tradition and businesses.

[Gem]

Originally Posted by PsyKeys

It's possible, you have a deep perception, mine is quite shallow given how little I know about the inner workings of bitcoin, but perhaps not shallow, taken that I have some knowledge about the world, institutions and people. Bitcoin creates a more integral security for money. .

I'm not an expert on cryptography and have limited understanding of cryptocurrency markets, but since diving down the Bitcoin rabbithole, I've entered the wonderland of Satoshi's vision - and there is no coming back.

[Gem]

This video covers the diverse concept of Bitcoin and the blockchain.

https://www.youtube.com/watch?v=eGx4FWS7zE4

It is not how we have imagined money up until now. It is an innovation so profound that we haven't begun to conceive of the uses it has. Bitcoin is a primitive blockchain, but it spawned advances in the tech that are capable of fulfilling the vision. Bitcoin was the genesis that represents the crypto ecosystem, and has become the Gold of that environment. As the governments of the world release their blockchain currencies, Bitcoin will be recognised as the origin coin, and no matter what the officials say, everyone will know Satoshi was the visionary and Bitcoin will be a 'collectible' of priceless value.

This is my thesis, which started as an investment thesis, but as I started to understand the meaning, the history, the legend of Satoshi in context with the coming digital world, I could see quite clearly that owning 1 bitcoin today will literally be a treasure by the end of the century. Hence I wish to open wallets for each of my nieces and nephews so that they wil have Bitcoin and prosper.

[Gem]

In celebration of decentralised value, Bitcoin reached all time highs last night.


Of course I have gone deep into the value case for the coin and understand the traditional value case in financial terms, but I have also developed a more abstract theory about the priceless value of Bitcoin as a symbol of cultural meaning, a meaning which is only becoming deeper, and even when a coin is worth 100K, it will continue to become more profound and eventually reach a priceless status.


I'm just here to post this documentary as a celebration of last night's record Bitcoin breaking price.


https://www.youtube.com/watch?v=wQei15AF4Tw

[Gem]

It is imaginary in that you can't sense it. It emerges from computer code as an imaginary abstraction.

It has no object of value or beauty. Its is a function, but not a thing which functions. It is a function without a form, yet generates a sense of ownership and value.

It has proven that value is not intrinsic to material, but a conceptual and emotional artifact. It effectively captures the very essence of value - the underlying function than generates value itself.

It gains value and loses value - spiking up and crashing down - but the underlying function of value generation is so concise that over time is increasingly treasured at a phenomenal rate - regardless of it being entirely unnecessary, let alone completely intangible.

[PurpleCabbage]

I remember vividly we had just finished a full energy efficiency installation at a remote data center some high volume of LED lights & adjustable valves on condenser pumps were installed to essentially revamp our power usage at a 20,000sqf facility, a smaller center for Seattle. One of our tenants was interested in some volume of the floor for their mining operation, that we quickly Vetoed. Simply because of the reality they were there to burn Heat energy to make a profit, I think of traditional mining, well this clearly has a direction and is it up?

What are the long term repercussion in a quantum state if we are essentially trading equipment volume for heat energy to accumulate a fluctuating asset? Even if it can become valuable, essentially it has to botch the scarcity or demand value somehow to get people to use it, hence the limited quantity. Well the cost of star heat is enormous although I don’t necessarily trade it for currency(Some probably do). Will mining always be a medium for exchange? In theory, if the times during when it was implemented remain as a high value in our society. This goes into Value economics instantly, if it’s clean, was intended for good productive value & can be verified by enough people consistently as in “yes we got rich and we added to humanity in a positive way” then the legacy will remain above the threshold and people will continue to respect it & it’s value. Plenty of traded currencies no longer exist with powerful faces on the front because of their directional leadership attribution.

My main concern is when they got the instant Veto from operations, running hundreds of data centers. How above ground can a mining operation propel a society above ground? Who is leading the face of the currency? How can this be universalized in a positive value?

I think of the realities here in Washington state where Amazon thrives, although not everyone here is actually happy about it, because of the volume of small businesses that are effected. The currency pools and quality of life is well influenced, and not necessarily to any one person, hubris is often reality, while my experience errs on the side of fluctuating time physics. Then we have Alibaba from China, China took the backseat to the internet, watched patiently, & they manage to set up the highest volume sales day globally, and they did it with a more small business friendly network. Leadership is always learning.

CEOs will continually represent their total network value even long after they have moved onto other avenues of leadership. who will keep the name of the currency alive & thriving?

I will hold faith in consciousness because of those involved, that the directional leadership of the owner of that currency is seeking to exemplify positive attributes to humanity. That they Go Vegetarian, Go Vegan, & maybe try some cabbage. (Can someone cc Zion)

Namaste
-Jesse

[Gem]

Originally Posted by PurpleCabbage

I remember vividly we had just finished a full energy efficiency installation at a remote data center some high volume of LED lights & adjustable valves on condenser pumps were installed to essentially revamp our power usage at a 20,000sqf facility, a smaller center for Seattle.

That's wild. It's a quality post, and therefore an internet rarity.
The currency needs A LOT of electricity to drive the mines which create the blocks - a LOOOOTTT!.
It is extremely inefficient on face value, but I think less energy is used to mint 10K of Bitcoin than energy used to produce 10K in Gold.

For a miner, expenses are the cost of electricity, space leasing and depreciation of hardware. The mining machines produce a ton of heat and make a lot of noise.
If the price of a coin falls too low the mines run at a short term loss (I think it's somewhere like 12-15K per coin break even, not sure) Everytime there is a 'Halvening' (when the rate of supply is halved) it becomes more expensive to mine a coin.

This leads to a major problem because as the reward in coins for mining becomes less viable, miners increasingly rely on transaction fees. When issuance of new coins ceases at 21M coins, miners will be reliant on transaction fees alone, which will make using the coins for smaller transactions prohibitively expensive.

Hence, I do not see Bitcoin as energy efficient, nor as sustainable asset in its current form, because it requires increasing amounts of energy over time to mine. As mining becomes impossibly expensive, and terminates in the future, miners' bitcoin rewards will have to be made up for in transactions to keep the currency afloat.

It all relies on the coins becoming extremely valuable, and ultimately, a high velocity of transactions.