There is two things that everybody take for granted and prevent the community to properly evaluate risks and take proper decisions. Those two beliefs are:
Bitcoin is an inflation free currency.
Trustless decentralised off chain solutions can scale to infinity.
Let me explain:
Bitcoin is an inflation free currency.
It seems most of the peoples in this community assume bitcoin is an inflation free currency because it is coded so. While true on paper Bitcoin can only remain inflation free if it grow large enough for the transactions fees to pay for the proof of work. The irreversibility and security of the blockchain is directly proportionate to amount paid to the miner. It is critical that miner reward don't drop too low because that mean it might become cheap to 51% attack the network. If fee cannot sustain a high enough level of PoW, the only solution will be to fork bitcoin to add a permanent inflation to Bitcoin. (and I doubt such fork will be controversial as it will likely be a desperate attempt to save bitcoin, miner will certainly not complain about getting some extra reward) Bitcoin remain to demonstrate that it can be an inflation free currency! Restricting onchain growth put Bitcoin at risk to have to increase inflation to support its PoW therefore damaging its store of value property
Trustless, decentralised off chain solutions can scale to infinity.
Many think that LN or whatever offchain solution can scale to infinity. Ridiculously high number are often cited without taking into account any realistic network constrain. It is not rare to see people claiming LN can achieve 1.000tps or even 1.000.000tps without giving much thought on how ridiculous are such claim. (simply because payments channel can achieve such high level between two peers is no indication LN can do it too.. payment channel without routing provide no scaling) The issue is with that mindset it make complete sense to block any onchain scaling, the blockchain (and also the miners) even become a parasite and an unnecessary risk for the ecosystem. The problem is far none of the decentralised and trustless offchain solutions have been able to demonstrate such ability. For example if LN is truly distributed, decentralised and trustless ressources necessary to provide routing for example will be distributed, decentralized therefore the whole process will be inefficient (as you would expect from any decentralized and distributed system, it is price to pay for trustlessness). For example your LN node might get many routing request (and only be used to provide routing rarely) to the point it might become impossible to run a LN hub at home due to high bandwidth requirement. (1.000.000 tps will demand a immense amount of resources on all the LN hubs..). Making you either increase your fees to reduce the routing request (therefore the bandwidth requirement) or shutdown your LN hub enterely. (be ready for the same debate in 4 years to cap the capacity of LN to prevent it from get centralised into 2, 3 massive LN hub?) People should keep in mind that bitcoin is not anyway near the level of transactions fees reward per block to ensure long term sustainability of the PoW and offchain solution have not demonstrated anything near what many are claiming! It should critical that bitcoin can still grow onchain while those 2nd layer solution are under development, if not it will unavoidably breakdown. Those two beliefs are likely to lead us to basically kill Bitcoin. DON'T TAKE ANYTHING FOR GRANTED Bitcoin is still very experimental and unfortunately it is not changing anytime soon.... (Well unless it is allowed to grow onchain as the original experiment intended) Edit clarity, typos
I've learned a lot by surfing these subs. I internalized it and am really happy with where I am. I wanted to take a minute to pay it forward and distill what I've internalized into first principles. First, a bit on my background. I was always interested in being FI and know that money doesn't equal freedom, but it is an aspect of freedom (if nothing else, freedom from worrying about meeting basic needs). I was saving heavily in my mid 20's but was also working for a nonprofit. I was saving 50% of my income but it honestly wasn't amounting to all that much. I wound up spending about a year teaching myself data science before and after work. I was really motivated by the field and, luckily for me, it turns out to be quite lucrative. I also started skydiving. That meant moving to a shared 1 bedroom apartment with somebody I butted heads with so I could afford it and not overly sacrifice savings goals. That was a tough call because skydiving is expensive, but it also made me much more risk tolerant and a generally happier and less reactive human. Skydiving taught me that most of my fears were unfounded (evolution predisposes you to fear more than you have to) so I geared up for a big life change. When I was good enough at data science, I quit my job in the nonprofit and moved to San Francisco to do a 3 month bootcamp program. Everybody thought I was nuts. That drained my savings virtually down to the last dime (with no debt though). I got my first job in the industry making very little money in a role where I would learn a lot. I loved it and got a promotion in (I shit you not) 2 weeks of being on the job. That was my first 6 figure income. Zoom forward four years and I'm at a major company with a significant equity stake, financially comfortable, and having just bought a home. Not quite yet FIRE but getting close depending on how my company stock does. Obviously everybody's path is different. But principles are more universal. With all that, here are the main principles that lead to my success:
Find the global maximum. I was top of my game in that nonprofit with a relatively good income and title, but I was growing unhappy and knew I wouldn't make my longterm goals. It was a tough call to quit, drain my savings, and move. But I did it and now I feel like I'm in a global personal maximum for life satisfaction, earning, etc. This means longterm thinking
Stay balanced. I almost burned myself out on FIRE multiple times. I started seeing everything as costs. Be scrappy on everything but what makes you most come alive. That's crucial for longterm motivation
The best investments are always in yourself. Active recovery, eduction, socializing, etc. are the best investments you can make. They're bad investments on the short term but great on the longterm
Save on housing until you're ready to purchase a home. My rule was that I'd live with roommates until I had enough for a down payment. When covid happened, I decided I wouldn't buy a place until the market rebounded so I let my investments sit until they rebounded, sold, and purchased a home. Most people lose too much money on housing
Never pay interest. This is an exaggeration but it's the biggest lifetime expense for more people. I pay some interest but both my small car loan and mortgage are below 3% interest. That means, with inflation, my money is likely better in the stock market than paying back those loans. So apart from that interest, I've been lucky enough to manage to avoid it like the plague
Take risks and experiment. Most people are way too risk adverse, scared to place strategic bets. I've lost a lot of money on risky things but have gained so much more in experience. Spending thousands on bitcoin miners in the early days while on a shoestring budget? Lost a lot on that. But it resulted in learning an appropriate way to buy crypto and the net effect was many more thousands of dollars in gains
Have mentors/models. If you don't do this explicitly, you default to modeling your behavior on whoever is around you. Think of who your top models for behavior are (financial, relationship, etc) and figure out what makes them tick. For me it was Mr. Money Moustache, some abundance-oriented technology thought leaders, and some anti-consumer friends who were militant about how owning things doesn't make you happy
Don't defer pleasure. I came to realize that many of my thoughts on retirement were quite Catholic (thanks, dad). In other words, I was deferring pleasure until retirement like my Catholic father was deferring pleasure until the afterlife. Be fiercely present and enjoy today. Finances are only one part of life satisfaction
Have an abundance and growth mindset. Most people think of money as a scarce resource. It's not. Anybody can generate it given enough time and effort. Think big picture and work incrementally towards it rather than accepting the career progression of your peers or employer. Most people underestimate how much employers will recognize a strong sense of drive and personal responsibility
Change is necessary. For the Buddhists, that's the source of all suffering. Do we want to sacrifice the mediocre reality today for the option of a better reality tomorrow? Most people are so change and uncertainty adverse they can't adapt to more beneficial situations. Being open and curious and optimistic about change is necessary, otherwise the mediocre today seems like a better bet or you'll change and then quickly regress. The opportunity cost for change is whatever situation you currently find yourself in. Make sure you're ok with this and have the confidence to course correct if you get in over your head
TL;DR - Reality is malleable. You can achieve whatever you want as long as you take a step back, strategize, and then kick some ass. If you adopt some principles and play the long game, you'll ace this whole life thing Edit: Glad this got so much attention. I feel like I've paid forward the mindset and benefits this sub helped me create. Thanks for being part of that!
Believing in Bitcoin means believing in Bitcoin miners. If you think Bitcoin needs to be saved by taking power away from miners, then you just don't get it. Such experiments should be played out on altcoins.
12-28 23:02 - 'Bitcoin is the myspace to the facebooks that are currencies on DAG. LN will not save btc. DAG is better than blockchain. No fees, no delays, scalable, no miners - no massive use of energy. Lurker since 2013 but had to sign up no...' by /u/fungo69 removed from /r/Bitcoin within 3-13min
''' Bitcoin is the myspace to the facebooks that are currencies on DAG. LN will not save btc. DAG is better than blockchain. No fees, no delays, scalable, no miners - no massive use of energy. Lurker since 2013 but had to sign up now. It has always been said around here that crypto is the future of transactions and it is. It has always been said that maybe one day something better than btc will come and now it has - 'it might not be btc, but crypto is the future'. Btc has paved the way to new technologies. The blockchain has many purposes, but it is no longer the best technology for p2p, instant, decentralized, free, verifiable, transfer of digital uninflatable currency. ''' Context Link Go1dfish undelete link unreddit undelete link Author: fungo69
[uncensored-r/btc] Segwit2X was an attempt by miners to save bitcoin from shooting itself in the face. Fees are craz...
The following post by derp47 is being replicated because the post has been openly removed. The original post can be found(in censored form) at this link: np.reddit.com/ btc/comments/7c8c6v The original post's content was as follows:
This is what happens when you let a small group of computer nerds (blockstream) hijack a world they don't understand. Should have listened to economists too
[uncensored-r/Bitcoin] Bitcoin Mining Consume Too Much Electricity, Miners Cry For An Energy Saving Solution
The following post by ChloeJiang7 is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/80uz3s The original post's content was as follows:
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