I meant to write this back around May 7th or so, after I listened to “What Bitcoin Did #104” with Tuur Demester and then read his “Bitcoin in Heavy Accumulation” paper. The title of my post was supposed to be “Is Bitcoin finally putting in a bottom?” Real life got in the way of my writing, for a few weeks and then Bitcoin went and did this
I saw a thread in a crypto group on Facebook polling the members, “What is the catalyst behind the Bitcoin price surge” and I personally think it was the release of that Tuur Demester paper. Until then, there were too many head fakes and too much volatility but he made a cogent case that overall, the whales were back in accumulation mode. Read on
To me and many others, bitcoin is not a technical revolution as much as it is a triumph of political and economic incentives.
— Two Bit Idiot
“Systems like Ethereum (and Bitcoin and NXT, and Bitshares, etc) are a fundamentally new class of cryptoeconomic organisms — decentralized, jurisdictionless entities that exist entirely in cyberspace, maintained by a combination of cryptography, economics and social consensus”
— Vitalik Buterin
In Part I we took a look at “What Bitcoin Isn’t”, where all the usual comparisons and analogies around Bitcoin were shown to be poor fits in explaining what the phenomenon really is, ending on the obvious next question:
Money is one of those “aquarium characteristics” of life. Aside from worrying about our bills or investments, the general structure of “money” is a background medium that underpins everything and for the most part we don’t really pay attention to it. Other examples are the base utilities like electricity and running water.
As we live our lives in these “aquariums”, we don’t really question the nature or the delivery mechanisms of these structural/cultural mediums we’re immersed in, unless they stop working or until they undergo a radical change. Read on