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Adam Back Profile picture
@adam3us
Aug 24, 2019 • 5 tweets • 1 min read • Read on X
Cypherpunks were always more interested in censor resistant global payment, than new gold store of value. Latter was just a means of deployment, attractive for being permissionless "no banking interface". /1
New gold, as hedge against geo-political uncertainty, and inflation, turned out to be an adoption driver also as the S-curve of both married use cases of uncensorable payment and store of value go through adoption waves. People come to appreciate Bitcoin via different routes, /2
New gold makes Bitcoin itself an investment class. Uncensorable payment without SoV is harder to invest in - you'd have to invest in startups monetizing uncensorable permissionless payments. New gold appeals to gold bugs, investors & exposes a wider range of people to Bitcoin. /3
So clearly Bitcoin with geopolitically neutral free market money, new gold, both store of value and censor resistant payment, is more valuable and useful than payment alone (say denominated in Fiat for example, as digicash was envisaged). /4
Geopolitically neutral free market money is a force multiplying major addition, and gold is not good for payment as it can't be used electronically in bearer form, and even in person assay is not as simple as a Bitcoin smart phone wallet, paired to the users own assay fullnode /5

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More from @adam3us

Adam Back Profile picture
Oct 5
"paper bitcoin" story playing again, to avoid repetition here's a thread to debunk that theory. think about it: fundamentally there are very few people who are long-term short bitcoin because it's volatile and tends to go up 10x in short periods so no one wants to short it.
one data point: there are generally no call or put options longer than 12 month duration. that's because no one wants to sell the calls. lots of people would buy them. with futures (perpetuals and dated futures) they are side-contracts, so there is a short seller for every buyer.
however the vast majority of the perp & future shorts are basis trade arbitrage, so they are neutral or even positive. how it works: someone with $60k to collect interest buys 1 BTC, uses it as collateral to short 1 perpetual future contract. now they look like they're short BUT
Read 15 tweets
Adam Back Profile picture
Jun 8, 2023
"a security is first and foremost an ethical concept, which is why the legal concept even exists" -@allenf32
you're relying on company management or service opetators who have privileged information, and management discretion affecting your investment. they defacto could rob you
Cypherpunks like Wei Dai, Tim May, myself were interested in smart contracts, anonymous or pseudonymous commerce using reputations, good behavior bonds etc without the possibility for physical enforcement and smart contracts rather than court/arbitration process. A decade of alt
altcoin premines, ICOs, definitely, nft rug-pull exit scams shows empirically that was maybe optimistic. Self regulation, smart contracts, in theory preferable, in practice can it work in isolation? I think cypherpunks underestimated the casino use case with rug-pull incentive.
Read 5 tweets
Adam Back Profile picture
Feb 12, 2023
early this year i was curious of the claim "bitcoin 2x's per year on average". it checks: the decade jan 2013 - dec 2022 #bitcoin went up 2.036x/year (1200x in a decade). if that continues we'll cross $10mil/BTC and $200 tril market cap by end of next 2 halvenings, about 9 years.
$200 trillion is a @halfin 2009 #bitcoin market cap prediction number. it's a LOT, displaces a significant part of the store of value premiums in bonds, real estate monetary premium, gold, 60:40 stock portfolios, etc. some think adoption will slow, derivatives reduce volatility.
i'm not sure about the adoption slowing, nor the volatility reducing; there are other factors. the new cycle people who learn to hodl/stack, who over time make it their mission to buy and cold store a much #bitcoin as possible, even resorting to leverage (volatility creator).
Read 10 tweets
Adam Back Profile picture
Jan 21, 2023
what if gold miners agreed to "improve" it, selling gold plated lead as gold, wouldn't users have to follow? obviously no. yet for #bitcoin newcomers keep getting hung up on this. #bitcoin miners cannot change it, and it's more automatic: ever node assays and rejects digital lead
the crux of it is buyers know what they want: pure real gold, and real bitcoin. money is a technology and #bitcoin is better gold, digital gold with a huge network effect and investor history and conviction: buyers know they want real bitcoin, and they can tell the difference.
yes it's digital and digital scarcity is a new concept, but even aside from #bitcoin embodying the digital scarcity concept, you can't rewrite #bitcoin's history, lindy effect, network effect, battle scars, distribution of ownership, fair launch and user demand for real #bitcoin.
Read 4 tweets
Adam Back Profile picture
Dec 19, 2022
for first-seen-safe transactions, a current topic of discussion, I had proposed in 2013 #bitcoin-wizards IRC a different way to do it, based on an older concept called "limited show" credentials, an idea comes from electronic cash where you want to deter double-spending in an
offline electronic cash system (where people can spend device to device without being able to reach a server or the network), i think the same idea works for bitcoin, but with some new trade-offs. the idea is simple to understand - users could double-spend but if they do then
miners can take their money. so the double-spend attack degrades to one where you can only profitably do it in collusion with a miner, and that's not easy in the face of competing miners who you probably can't expect to collude, and just keep the double-spent funds.
Read 11 tweets
Adam Back Profile picture
Jul 4, 2022
@nic__carter @VitalikButerin It depends what purpose it works for. Don't forget the context, some PoS coin promoters spend time FUDding PoW to sell their coins, and go as far as to claim PoS is "better" than PoW, and we all know why PoW is needed. PoS fails at those reasons, and so doesn't work (for purpose)
@nic__carter @VitalikButerin Eg a central server "works" but it does not work as a basis for decentralised bearer money, without public audit, unilateral withdraw, fraud proofs and ability for users to fire, recover state and replace the server.
@nic__carter @VitalikButerin Further if even PoS was magically fixable (for purpose), it is still undesirable replicated the problems of fiat systems: the wealthy have over-sized policy influence, can and do bail out their friends, seize, freeze, those close to power gain favors etc.
Read 4 tweets

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