A production quota is defined as a limit on production, set by someone other than those purchasing the good in question – a government, a cartel, etc. In the case of Bitcoin, miners produce “transaction entries in the Bitcoin ledger” and those wishing to make those entries must pay miners to do so. The question is if this good is subject to quota. Continue reading “Note on the block size limit”
I wrote this just over one year ago, but only made it public for a few days. Here it is. I still agree with perhaps 80% of the content. As for the style? Pfah.
Blockchains as a natural phenomenon
Bitcoin is real. We can keep it, lose it, give it away or receive it — but we can’t counterfeit it. There is no such thing as a fake bitcoin, nor will there ever be, radical developments in cryptography or quantum computation notwithstanding. Yes, this makes it similar to gold or crude oil. That’s not important. Gold’s been around for a while already; it’s shiny, but then again, it’s rather dull.
What I want to argue is that owning and using Bitcoin is fundamentally different from owning and using fiat currencies, precious metals or any other asset. Bitcoin turns social relations into effectively innate objects and properties. These include “transferable property”, “trade” and “autonomy”.