Bitcoin, not a currency, is a new financial game

JP Koning previously reported on a blog post highlighting the mechanical weakness of the two old terms (mail time) that channels couldn't produce.:The problem of injustice, the problem of irreplaceability. This article shows how Bitcoin, today's new chain script, perfectly solves this problem.

Chain Letters, a hierarchical game based on personal relationships

Let's Go Play First The name of this game is "Chain Letters". (Chain letters)

If you ever receive a letter like this, “Hello, this is a letter from the 'Future'. If you do the following things with sincerity, you can write future results many times over, so invest in the 'Future' boldly. “Then on the back of the letter is a list of tasks and names.

In fact, many people will be reluctant to try this procedure at first, but the $ 10 question, how much will it cost? Some people will want to play. But if you're a little smarter, you'll find:You can count your income, as the chain continues the list will disappear and your name will appear at the top, accepting payments from others.So let's calculate the potential increase.

The names I first received included Bob, Jocelyn, Matt, James, and four different people. By the rules of the game Bob gets a salary of $ 10, but what about Jocelyn, Matt and James? This is why if you put your name below, the five friends who received the letter will each send Jocelyn an income of $ 10, or $ 50 (5 ^ 1 X 10) as a second form. Using the same calculator, Matt received $ 10 or $ 250 (5 ^ 2 X 10) from a total of 25 aliens, while James received $ 10 or $ 1250 (5 ^ 3 X 10) from 125 aliens.Finally, when you turn to the top of the list, you will receive $ 10 from 625 aliens, an increase of $ 6,250 (5 ^ 4 X 10).

You might be surprised to see this and only spend $ 10, but you can potentially earn up to $ 6,250. Where does all this extra money come from? How did it all happen? From the second letter, the friend (F) begins to earn money for Matt. Then your best friend (your FF) pays James, and finally you're at the top of the list, your best friend spends a total of $ 6,250.

Yes, this was raised by a total of 625 foreigners. There is no extra cost that creates more than that, they are like you who are willing to make a big or a small sacrifice to participate in this game. But most importantly,This game is based on the rules of the zero sum game.In other words, your gain should be someone else's loss, and for one person it is only $ 10 loss.Finally, the rules of the game create a powerful ripple effect that can provide many benefits to the players at the top of the list.

This is an exponential multiplication based on an increasing exponential basis 5!But such a gruesome reproductive process is based on two main assumptions.

Everyone is obedient and eager to participate in the game, and the cost of trust is incredible. That is, the value of trust is zero.

All game participants will have their name deleted and emailed as a rule, no one will change their personal name, so you can benefit from it in advance and complete the game.

Without these two assumptions, in fact, the chain letters will soon be separated. This means that when the disciples do not invest and extend the chains, the chains will break, the early risers will benefit, and the early risers will suffer.

On the other hand, past assumptions show that the performance of this game has the success of a personal credit network.That being said, if I was a communicator I should have a social media campaign to encourage my friends to trust him to protect my future interests, but I have a few differences.On the other hand, this last theory shows that the rules of the game are weak.Because even though I can persuade my friends to play, I can't guarantee that they won't lie and quietly change my name for them.

JP Koning once reported on a blog post about the weakness of both old times (mail times) that newspapers couldn't produce.The problem of corruption, the problem of non-fungibility, and Bitcoin as the current new "chain" is the best way to solve these problems.

1. The problem of injustice

In the text string, the problem is that some people misuse the names of the letters or create incorrect name information to get more money and get back, or some people get the related benefit by sending a letter without sending any silver. All of this is caused by the malicious behavior of individual nodes.

2. The non-fungible problem

Likewise, I am the safest and fastest way to profit when I am on the list. Since there is a shortage, here is the risk value of the decision level. At the same time, I cannot buy back this ranking position for income and sell it to others, which means it is not fungible and cannot start a business. level.

However, the biggest advantage of writing is decentralization. Each of its participants is personally responsible for receiving, printing, editing, distributing and marketing the recordings. Without a basis for taking legal action, the police could do next to nothing. "He cannot prevent the spread of"But in these two ankles of Achilles, the chains break and disappear as new entrants fall, and new entrants and weaker ones lose their starting capital.

Therefore, we can call the chain symbol a hierarchical set based on the individual chain.

Bitcoin, the new game is not financially hierarchical based on price rankings

Back to Bitcoin.

Looking at this, we'll see how the Quality of Life Withholding (HODL) is often referred to by Bitcoin enthusiasts as "please wait longer", just like participants in the above script no!Therefore, in the next article, we will analyze the price of Bitcoin again logically from a financial game point of view, dispelling the myth that everyone considers it to be 'money'.

In early 2018, JP Koning, a long-term analyst at the Central Monetary Bank, discovered that Bitcoin looked like a lot of paper. Of course, as we all know, long strings have been isolated by many governments with narrow names such as Ponzi Scams and Pyramids because they are very contagious and can raise funds, and they have the following similarities :A zero-sum game where the order of entry determines the distribution, the hierarchy with pros and cons, and the rules by which the first birds eat last.

The chain uncertainty problem is due to the fact that the problem of double spending there are minors who have not come forward before and ensure the safety of the chain data.However, for the sake of non-fungibility, Bitcoin is completely different. As described in free form, Bitcoin has developed from the ground up to be a peer-to-peer payment system with management, delivery, and trading functions.In this process, I 1 BTC and you 1 BTC have the same properties, therefore BTC is interchangeable.

This payout is like a big plane, where the "seats" of the plane were created early (seats, for example amounting to 21 million bitcoins), all seats are equal and can buy and sell (Buy and Hold c that is, a certain amount of bitcoin).And at the start of this process, like Fiat currency, it doesn't matter, and when you buy and hold the price, the system just closes it. It's an immutable part of the chain and has nothing to do with the price you buy it at. Yes, the price you will have nothing to do with this payment and your price is entirely decided by the business partners and defines your future expectations. Therefore, in the early days of Bitcoin there were very few players in the game and expectations of collective payback were still very low, so Bitcoin was relatively cheap. (In May 2010, programmer Laszlo Hanyecz spent 10,000 BTC to buy two Papa John pizzas worth up to $ 20.)

Of course, there is no 1st or 2nd "table" in BTC, only the level is determined by your place of purchase.

As an investment tool, Bitcoin differentiates between a commodity and a contract.The product has social capital, has a positive relationship effect and has affected the current value of the business, thus reducing future finances. Likewise, the contract has a legal repayment agreement and the contract price is based on the amount of the discount owed by its lenders. However, Bitcoin is not a debt, but an asset that does not have borrowers like gold. According to Benjamin Graham, father of investment, in the short term the economy is a poll machine, but in the long term it is a measure.

In the case of Bitcoin, it is the pure voting machine that lacks the ability to recover the fair value that can affect the starting price as a business. There is no other source of income than the income of the investors themselves. So it's a zero financial game like a paper chain. The first buyers are followed by the subsequent buyers, and everyone is lucky enough to want to cash before they break up.In my opinion, BTC is a 100% zero-sum voting machine, the world's first major "Keynesian beauty pageant" that anyone can easily join! (Keynesian beauty pageant)

For this reason, the new chairman of the SEC, Gary Gensler, said: “Bitcoin came to life when mining began to incentivize the use of decentralized platforms. Identify the gaskets, not the safety.)Obviously, BTC is not a virtual currency that businesses can advertise and manage, but it is a commodity, an asset, and a legal entity.Generally, virtual tokens are divided into electronic devices and security tokens and are recognized as a model of diversity, and ICOs will be more regulated in the future. But even though BTC has become a commodity, why is the price of Bitcoin moving so madly? A decade has passed since Bitcoin Pizza Day, and although Papazone is still operating worldwide, BTC could reach $ 60,000, with a market value of less than $ 10 billion 17 years ago per cent to $ 100 billion. hit the dollar. In the second half of 2019 and 2020, it will reach 200 billion in September. By this, in April of this year, it had peaked and reached trillions. There is no other asset in the world that has reached Bitcoin. I'll answer this using the airplane example described above.

If the mega plane only has 20 seats in total, the average price of the first 10 seats will be $ 20, and the average price of the 10-12 seats will be $ 80. This time the commitment was low, the cost was low, and they were held and supported by great believers. However, after Bitcoin gained public attention and was seen as a 'value' ('blockchain as high tech', 'security and quality of payments'), seats 12-18 were imprisoned. With so much money to steal, the average price will be $ 500. In a few years, Bitcoin will attract large investments ("Bitcoin, the most profitable stock"), "the most valuable securities against block inflation"), and the average value between the last two digits may be $ 1000 . First of all, I state that this example is only used to describe internal value and show the value of feeling that everyone is a long term holder. BTC lost. So we have pictures like this.

You can see that eventually the market price goes up to $ 1250 USD, the average asset expansion is still zero when new buyers buy at this price. Compared to the player who buys a 10 USD coin, his treasure will be zero. The degree of expansion is 125 times. In other words, if you think you can get a good price and still gain popularity around the world, then go ahead and buy it! This is because the income always depends on the newcomer.Early risers buy and store at a special price and have hope for the future.

In this map bar, sorted by major value, we can see clearly.Bitcoin replaces the hierarchical name of the newspaper order still makes the price not hierarchical, but it is still the legal game of hasty and late birds, and this game has self-sustaining strength (self-sustaining effect) and long tail. effect.

These two special effects, which exist only in our time, permeate every industry in a game like this, their rage and disease as the price changes daily with many thirds.It is therefore a game that anyone can access at any time, 7X24 Casino International, an integrated peer-to-peer payment network that blocks the management experience, manages non-hierarchical updates of financial games based on price categories.Or the “return of the dollar” explained by Zoltan Pozsar… Yes, whatever you want to explain, whether you hate it or love it, it will be there and live forever. You can easily walk through the real world. Both bulls and bears survive the sovereign state, so in my opinion this is an amazing invention.

I would like to end this article with a quote from JP Koning at the end of the article.

“You can ask what is the principle that allows Bitcoin to become electronic money. One of the biggest scams of Bitcoin founder Satoshi Nakamoto is that his invention is like it is a currency, and that is a new currency. ”If we can thank the creator of poker, we can also thank Satoshi Nakamoto.