Bitcoin

What Makes Bitcoin Different From Crypto – Bitcoin Magazine – Bitcoin News, Articles and Expert Insights

As someone who learned the importance of “bitcoin only” from personal experience of going broke, I feel a determination and duty to steer newcomers away from other cryptocurrencies, which I believe to be outright scams at worst. cases (or subtle ways for others to take your bitcoin, at best). In my experience leading meetings and teaching lessons on bitcoin, I have found that many, if not most, people feel that bitcoin is boring or that some other cryptocurrency is better than bitcoin for various reasons.

The reasons are familiar to me. i too thought bitcoin was slow and inefficient. i bought eth even before i bought bitcoin. It wasn’t until I spent hours upon hours reading books, listening to podcasts, stalking Twitter, and reading bitcoin guides that I learned the value of bitcoin, specifically, and why other cryptocurrencies are unnecessary and likely scams. but hundreds and thousands of hours of study to the point of obsession are not enough for people who are new to the world of cryptocurrencies and are sure that [insert coin name] is different.

Reading: Bitcoin vs other cryptocurrencies

Often, I hear newcomers express their excitement about some nice opportunity to collect 8-bit art that they think is unique or rare. The contrast between bitcoin and other cryptocurrencies does not depend on the differences in their usefulness, but on the ethics of their users. bitcoiners are here for a peaceful currency revolution to create a new society in a way that has never been done before and without rulers. most people who like cryptocurrencies are here to mint some monkeys on a blockchain and make a quick buck. the more time spent in the digital asset space, the easier it is to notice the main differences between the two groups.

Unfortunately, on a regular basis, I find myself sad trying to convince many people I personally know and respect that they are in serious risk of losing all their money by participating in glorified gambling schemes as they try to make wise investments based on on youtube personalities or random finance bloggers.

This article comes from one such group of people, where an in-person briefing was recently held and an article was shared recommending “five compatible cryptocurrencies” that will apparently do just fine in 2022. (ironically, this group private was formed around the fact that these people were decidedly not complying with mask mandates and lockdowns). I felt compelled to write an article demonstrating why bitcoin, and only bitcoin, is the cryptocurrency of sovereignty seekers and those who want to thwart an agenda of globalization and centralization. this article is written from the perspective of those who wish to remain sovereign in body, mind, spirit and wallet.

bitcoin is a system of rules with no leaders, no rulers

leaders are not the most trusted group of people by many who questioned decisions made by those in power in response to covid-19, such as putting society on lockdown and forcing questionable health mandates . Because of this, it may be wise to seek a system for our money that is not affected by the whims of the humans who wield political power.

It is possible for a monetary system to function without leaders. Currently, our monetary system is operated by a group of people who make decisions based on their assessment of what is happening and predictions of what may happen in the future.

When it comes to other cryptocurrencies, issuance is decided by a group of people who are exposed to the public and are susceptible to greed and coercion. furthermore, the issuance of other cryptocurrencies is not necessarily based on a fixed schedule. bitcoin issuance is predetermined, code-based, and public for anyone to see. whoever runs a node is completely free to choose the rules that she wants to follow. if any millionaire wants to change the bitcoin code to make it proof of stake, he is free to do so, but my node will still run the current code. everyone running a node is an equal participant and it doesn’t matter if they have 2 million bitcoins or 2 satoshis – running a node levels the playing field.

One of the best things bitcoin’s pseudonymous creator satoshi nakamoto ever did was disappear after launching the protocol. it means that there is not a single person to put on trial, physically persecute or try to persuade to change the protocol. bitcoin is a system of rules, not rulers.

bitcoin is actually decentralized

Decentralization is a highly hyped buzzword that is a false property of most cryptocurrency projects that claim it. decentralization is important to people who believe that world powers are working together to limit freedoms and mandate measures that deny bodily autonomy. matters because it makes a system anti-fragile in a harsh environment.

If a protocol is decentralized, then it can withstand attacks from antagonistic governments or military forces. this is what happened when china banned bitcoin mining and the network continued to function as intended. a combative government tried to shut down bitcoin and it stayed online, producing blocks and processing transactions.

See also: Bitcoins Impacts on Climate and the Environment

I’ve heard some people say that decentralization is a specter. I do not agree; something is decentralized or it is not. If the blockchain of your choice can go offline for 72 hours, or simply shut down to give developers uninterrupted time to fix it, then it is not decentralized. if it is not decentralized, your money is susceptible to the biases of internet service providers. bitcoin is actually decentralized because its hashing power is distributed around the world and copies of its ledger are similarly distributed around the world via users running full nodes.

bitcoin is censorship resistant

Another important feature of bitcoin, especially for people who spoke out against the mandates, is freedom of speech. In Citizens United, the Supreme Court held that money is, in fact, speech. There have been numerous attacks on freedom of expression in recent years, including the permanent blocking of a sitting president’s Twitter, the loss of doctors’ licenses for sharing information about covid-19 that did not fit the narrative, and the freezing Canadians’ bank accounts for making donations. to a cause that his government considered unacceptable.

Considering money as speech under the law, it is imperative that it cannot be frozen or stopped for any reason. bitcoin fits that bill. if an entity attempts to blacklist an address, that owner may choose to pay a higher fee to have their transaction included in the next block. only one mining pool has tried to censor the transactions, and they changed their mind shortly after to validate the transactions like any other miner.

Not all cryptocurrencies are censorship resistant. The Ethereum blockchain had an exploit on a decentralized autonomous organization (DAO) in 2016, resulting in $150 million being stolen and the code being forked to pretend the hack never happened. if the code can be changed to pretend a hack never happened, it can be changed to prevent certain transactions from taking place. For example, the most widely used Ethereum wallet and largest NFT platform, MetaMask and OpenSea respectively, blocked users from Iran and Venezuela from using their platforms because the countries are in the US. uu. Similarly, sanctions list metamask and infura (both inextricably linked to the ethereum infrastructure) blocked unspecified areas of the world due to legal compliance concerns. if people are limited in their access to their money, they are limited in their freedom of expression. bitcoin is censorship resistant.

bitcoin is resistant to seizures

This is a complicated topic and needs to be clarified. bitcoin is not seizure-proof, but it is seizure-resistant. this ownership of bitcoin was recently called into question when the canadian freedom convoy had bitcoin funds that were collected and subsequently confiscated. a private key was handed over during a police raid and some of the bitcoin funds were able to be seized. More importantly, not all of the funds were taken, and some were either locked in a multi-signature quorum or already handed over to protesters. as quoted in the first referenced article, “no matter how immune bitcoin is to government power, its value and usefulness will always be undermined by the fact that its users are not.”

Bitcoin users have the option to make their bitcoin as easy or as hard to confiscate as they wish. Recently, hackers who were able to get their hands on 120,000 bitcoins had the funds seized by the FBI after it was discovered that they were keeping the private key online in cloud storage. (remember folks: the cloud is just someone else’s computer). if they were wiser, they would have locked their funds in a multi-signature solution distributed geographically around the world.

In another story with a different outcome, a German hacker was able to successfully evade having his bitcoins seized when he served a two-year prison sentence for surreptitiously installing mining software on people’s computers and amassing more than 1,700 bitcoins. he refuses to hand over the passphrase and the police are unable to access the “seized” funds. bitcoin is as resistant to seizure as you are.

bitcoin had a fair launch

satoshi nakamoto announced bitcoin in a public forum for anyone paying attention to see. when it was officially launched in early January 2009, anyone running the protocol could earn bitcoins in exchange for using electricity to power their computer. the same cannot be said for any other cryptocurrency. the people who launched the ethereum network gave their employees 9.9% of the tokens initially created with the creator, vitalik buterin, praising this premine.

in vitalik buterin’s own (albeit satirical) words, “a noisy representative of the blockchain industry’s slow replacement of philosophical and idealistic values ​​with short-term profit-seeking values ​​is the ever-increasing size of premines: the allowances that the developers of a cryptocurrency give themselves”. the genesis of bitcoin was a once in a lifetime opportunity for a fair launch for anyone to participate in. the chart below shows the popular cryptocurrencies, their launch date on the x-axis and the percentage that was prepended on the y-axis it’s extremely clear how bitcoin is one of a kind with almost no percentage going to the experts or even the creator before its release satoshi ran the code with everyone else who they opted in and had the probability of finding a block proportional to the amount of cpu they were using in the process.

according to camilla russo, who wrote the article cited above detailing the ethereum premine, “satoshi nakamoto gave anyone who was interested an equal opportunity to obtain bitcoin when the network launched, as he announced when mining would begin and published the software beforehand.”

To this day, anyone who wants to join the network just needs to download a wallet and earn bitcoins. or if they have the resources, they can buy an asic miner and plug it in to earn bitcoins by mining. bitcoin was the only cryptocurrency released fairly and there will never be another opportunity to distribute money fairly in this way.

bitcoin is issued based on proof of work

See also: Old Bitcoin mining rigs risk &x27shutdown&x27 after BTC price slips under 24K

Other cryptocurrencies that operate on a proof-of-stake basis can exchange the code for those with the most money “staken”, if they only vote for the exchange. this sounds eerily similar to the way governments operate today, with Big Pharma, Big Farm, Big Tobacco, and other “bigs” using their deep pockets to pressure politicians for the changes they want to see enacted. for your benefit. bitcoin’s proof-of-work algorithm means that every player is an equal participant in the network.

In a recent article for Forbes, Pete Rizzo describes why Bitcoin uses energy in the first place. “However, by linking bitcoin issuance to the energy market, bitcoins were distributed fairly and widely.” Most people around the world have access to electricity, which could be used to mine bitcoins if so chosen. Because bitcoin uses energy, it allows the value it creates to be distributed fairly by anyone who is using energy to mine it, while securing the history of transactions by writing them to the blockchain. the use of electricity means that miners have to sell some of the bitcoin earned to pay for energy costs, further distributing the bitcoin.

rizzo’s article is a great starting point for those curious about cryptocurrencies but worried about a potential climate catastrophe, or those who think proof-of-stake is a better option. Ultimately, proof-of-work is what separates bitcoin from other cryptocurrencies and gives it an edge over government or centrally planned money.

bitcoin is scarce

unlike other assets that cannot be audited, bitcoin is extremely easy to audit with a simple command. For users running a full node, there is the “gettxoutsetinfo” command that tells anyone running it exactly how much bitcoin is in circulation, as well as other relevant information about the bitcoin blockchain, such as block height, estimated size of the blockchain, etc. this command is one of the things that distinguishes the bitcoin asset from other cryptocurrencies because its users do not have to rely on other people’s calculations to determine the total and circulating supply. In addition to having to trust other people to compute correctly, this also doesn’t provide a foolproof way for multiple distributed parties to get the same answer.

Some proponents of other cryptocurrencies may claim that a limited supply is not the main marker of utility. they may insist that their cryptocurrency of choice has more stuff built on top of it. in response, one must think about the architectural design when building on top of alternative blockchains. it is impossible to build a robust and resilient decentralized system on a centralized platform. this goes back to an earlier point that bitcoin is decentralized; if an internet service provider breaks access to the base layer, any program or dapp built on top of it will stop working (because it’s not decentralized).

Bitcoin’s limited supply of 21 million bitcoins is one of bitcoin’s major innovations. no one can change this limit. if they do, anyone running a node can (and will) choose to continue running the true bitcoin codebase. Until the creation of bitcoin, there had never been a true digital scarcity before.

bitcoin requires personal responsibility

Apparently, one of the arguments in the cryptocurrency discussion that inspired this article was that there will be some sort of redistribution of wealth by whoever removes world government in the future. I hate to be the bearer of bad news, but wealth redistribution is already happening and it’s bitcoin. everyone feels late when they first get into bitcoin, but we are still very early. Although the global adoption rate is extremely difficult to quantify, on-chain analytics data shows that the majority of the world has yet to adopt cryptocurrencies in any significant way.

Bitcoin is a new way to commit to financial sovereignty; it requires you to take full ownership of your assets, which can be scary for some because there is no entity to help you if you lose access to your private key.

Fortunately, there are many services that provide alternative means of custody, such as home or unchained. these companies support customers who may be ready to take ownership of their private keys, but want a backup, just in case. Although there are ways to relieve some of the pressure of having to be fully responsible for all of your assets, bitcoin requires a high degree of personal responsibility.

in conclusion

this is my last attempt to draw attention to the importance of bitcoin and warn against its imitators. The aforementioned reasons why bitcoin is paramount to all other competitors are important enough for this author to stay away from other cryptocurrencies. bitcoin is the only viable option due to node decentralization, immutability, limited supply, fair release, and proof-of-work mining. If, after reading this, someone chooses to buy something other than bitcoin, I’ve done my best to convince them otherwise. A wiser person than me once said: “If you don’t believe me or don’t understand, I don’t have time to try to convince you, I’m sorry”. That said, if you walk away from this article curious for more resources on bitcoin, I’ll be happy to share them.

this is a guest post by craig deutsch. The views expressed are entirely my own and do not necessarily reflect those of BTC Inc. or bitcoin magazine.

See also: Celebrating the Seminal Bitcoin White Paper Satoshi Nakamoto Published 13 Years Ago Today – Featured Bitcoin News

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