Series 1: What is the key to the success of Bitcoin?

8 Factors of Bitcoin Success

Satoshi Nakamoto developed a system by himself and disappeared two years later. The Bitcoin system has no management fees and no owners and has been running automatically. What is the mystery?

Let’s hear what Satoshi Nakamoto had to say:

“I didn’t expect Bitcoin to have such an impact at first, and I’m still confused as to why it succeeded to such an extent. In my experience, many promising ideas, especially in cryptography, have never been so successful in practice.

But anyway, it could be a combination of many things:

1. The choice of a primarily fixed monetary base ensures that early adopters receive a significant windfall when Bitcoin becomes popular, attracting those who distrust arbitrary government monetary policy.

2. The timing of the guide into coincides with the economic crisis.

3. Early discussion of related ideas makes the ideas more acceptable.

4. There are hardware and software infrastructures available for reference.

5. There may be others that I overlooked. “

The first point is that there is demand in the market, and it is obvious that the central bank has issued excessive currency. The second point is about the market opportunity. Not only did he see it, but another master, Nick Szabo, also saw it, but Szazo didn’t think of programming until a year later. The ideas and technologies related to the third point were primarily completed in 2005. Finally, Satoshi Nakamoto’s epiphany In 2007, the financial turmoil prompted his epiphany. The fourth point is the availability of network software and hardware technologies. The above analysis is correct.

“To be honest, I didn’t initially think that Bitcoin would have such a big impact” This sentence does not match the truth. He has been carefully prepared since 1998, and there is no photo of him as an adult on the market. In 2003, when his father mentioned him, a small D. represented him. It is impossible to confirm which character the Chinese character is. He used anonymity when launching Bitcoin, and the whole plan was meticulous, and he knew that what he was planning was a big event that would break the sky.

In addition to the above characteristics, he has thought of transparency, community, gaming, and self-control.

The generalization of the Bitcoin system by the outside world summarizes the results. Words like decentralization, blockchain, machine trust, and changing production relations have not appeared in the English Bitcoin white paper. To imitate based on the results will inevitably be superficial, and it is inevitable that blind people will touch the elephant. Tracing the footsteps of successful people starts with the reasons, and it is important to understand the key reasons for success.

A variety of factors must play a role. Satoshi has thought of all the elements. Satoshi Nakamoto’s intuition is excellent. He has basic training in product design rather than iterative thinking. He thought it was a big deal, but “I still kind of don’t understand why it’s been successful to this extent,” he’s not sure how progression, how fast, and to what extent, which is the main reason.

In Satoshi Nakamoto’s opinion, the first point is the key to the fixed total amount and the shrinkage of the period, which is an innovation different from all original cryptocurrencies. The second point of the game is also the key to success. He talked with Hal Finney and disagreed with Hal Finney’s view that volunteers can run the Bitcoin system. It may become a computer game if the mining machines do not give money and volunteers are used. Will it be successful if it is evenly distributed? It shows that he has a clear understanding of gaming. The third account book public is to establish credit, which is a point of view he has known since 1998. The fourth automatic control is used to combat randomness. The source of his self-controlling thoughts was not found. The fifth is the volunteer community. There are still 4 maintainers. The Bitcoin forum and Satoshi Nakamoto Bunko played a very important role in the early days, but now It’s not alive. The above 5 points are very critical. There are many market articles on the first point, so I won’t go into details here and start the analysis from the second point of the game.

The game

The Bitcoin system has no equity and no owners. Equity represents the ownership and profit rights of the project. From the perspective of the right to profit, the owner of the mining machine gets the profit, which is equivalent to the interest of “equity.” From computers to GPUs to ASICs in Bitcoin mining, the miners have changed a lot, and the one with the competitive advantage always wins. That is to say, “equity” is not once and for all, but the best one occupies a high position. In the next step, national mining will appear, and green mining will occur. More and more powerful miners continue to raise the bottom of Bitcoin’s computing power. When the currency’s price drops to the bottom of the computing power, the big miners will buy the coins because there is no need to dig. What happens if there is a gaming of equity in a company? From the perspective of Bitcoin practice, gaming is the source of Bitcoin’s vitality. If Bitcoin changes the relationship of production, this is the fundamental change. The change of equity and the market’s change of production relations for Bitcoin has not mentioned the point. A system without competition and incentives will be stagnant. Likewise, why are Bitcoin forums and libraries lifeless? Because there is no competition mechanism.

Gaming has been seen on YouTube, Douyin, and WeChat. They are gaming bloggers. It can be seen that no matter how good the blogger is, he has no say in the project, and no matter how outstanding the user’s contribution is, he has no voice in the project. How to make good use of the gaming community? Coins have great potential as a bond. People say that the community will beat the company, and it should be noted that this statement is true in the Internet field. If we continue Satoshi Nakamoto’s idea of computing power gaming and let the company’s equity also participate in the game, it will undoubtedly be a kind of social progress.

The idea of gaming is Satoshi Nakamoto’s intuition; otherwise, it wouldn’t have the programmers all volunteer and the Bitcoin forums looking like they’re dead. Then Ethereum made certain intuition improvements to make Ethereum more lively. But Vitalik is too young after all and doesn’t know how to rise to the height of improving production relations.

Series Two will introduce the second feature, “public.” Openness and transparency are the core but decentralization only accounts for nearly half.

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