{ "id": "c50d650447e9", "url": "https://www.lynalden.com/bitcoin-network-health/", "title": "Assessing the Health of Bitcoin - Lyn Alden", "note": "Alden is a notable proponent of Bitcoin, and what makes her work unique is that she is also an engineer and an independent financial analyst. In short, she combines strong technical depth with a rich background in macroeconomic concepts and theories. In this article she assesses Bitcoin based on five major factors:\n\n> 1. Market Capitalization and Liquidity\n> 2. Number of Conversion Points\n> 3. Technical Security and Decentralization\n> 4. Quality of User Experience\n> 5. Legal Acceptance and Global Recognition\n\nThe whole article is a good read, and doesn't require any previous knowledge of Bitcoin. It is a reasonable primer for anyone. \n\nShe addresses the topic of Bitcoin volatility and frames it in a way that clarifies how to interpret it.\n\n> Bitcoin's notorious volatility is unlikely to diminish much until it's more liquid and more widely-held than it is now; there's no fix for bitcoin's volatility other than more time, more adoption, more liquidity, more understanding, and better user experience with the wallets, exchanges, and other applications. The asset itself is only changing slowly; it's the world's perception of it and the leverage built on top of it or ripped away from it that goes through manic and depressive cycles.\n\nShe also looks at the underlying technical functions of the network.\n\n> Bitcoin isn't magic. It's a distributed network protocol. For it to continue to be valuable, it has to function through opposition and attacks, and has to be the best and most liquid way to do it. The _concept_ of Bitcoin is insufficient to really matter for anything; it's the _reality_ of Bitcoin that is important\n\nTwo things I learned here were:\n\n1. The Bitcoin network has had 100% uptime since 2013. That is remarkable. \n2. Bitcoin has a 32-bit Unix timestamp issue, but it is an unsigned implementation so sometime before the year 2106 Bitcoin will need to figure that out. Iā€™m not worried. šŸ˜\n\nIn the last section she talks about the legal risk and government threat to Bitcoin. This is a lengthy excerpt, but I liked how she framed this topic up.\n\n> Instead, the biggest legal challenges for the Bitcoin network ahead are likely in the area of privacy, and by major governments like the United States. Governments really don't want people to have any sort of financial privacy, especially at scale. Financial privacy was the default for most of history, but in recent decades it's increasingly not.\n> \n> The premise from their perspective is that in order to prevent the 1% of bad people from doing terrorist financing or human trafficking or other bad things, 100% of people have to give up their rights to financial privacy and allow the government to surveil all transactions between all parties. In addition, governments have shifted much of their revenue toward income taxes, which rely on ubiquitous surveillance of all payment flows to enforce. But of course, such a thing can lead to massive overreach, and with grave consequences.\n> \n> In addition, we live in an age of surveillance capitalism. We are offered myriad free services by corporations if we sign away our digital soul, meaning all of our data. What we look at, and what we spend on, is very valuable commercial information. And governments enhance this and help make it the norm because they plug into the back-end and collect that data too. Sometimes it could be for national security reasons, and other times it could be to try to control the whole population (e.g. China's social credit scores).\n\nUltimately she gives it a grade of A-. Alden's recent book [Broken Money](https://www.amazon.com/Broken-Money-Financial-System-Failing/dp/B0CG8985FR) is on my shelf for an upcoming read.", "voice": "mixed", "saved": "2024-01-21T22:12:16Z", "host": "lynalden.com", "kind": "page", "tags": [ "_feature" ], "record": "https://links.thingelstad.xyz/links/c50d650447e9/", "markdown": "https://links.thingelstad.xyz/links/c50d650447e9.md", "issues": [ { "number": 274, "slug": "274", "title": "Weekly Thing 274 / Gibberish, Happyfeed, Airshow", "date": "2024-01-27T13:00:00Z", "section": "Featured", "position": 1, "url": "https://weekly.thingelstad.com/archive/274/", "page": "https://links.thingelstad.xyz/issues/274/" } ], "connections": { "same_host": { "count": 12, "page": "https://links.thingelstad.xyz/hosts/lynalden.com/", "nearest": [ { "id": "11f42b5ba2d0", "title": "March 2023 Newsletter: A Look at Bank Solvency - Lyn Alden", "url": "https://www.lynalden.com/march-2023-newsletter/", "record": "https://links.thingelstad.xyz/links/11f42b5ba2d0/" }, { "id": "de726db87bc3", "title": "Implications of Open Monetary and Information Networks - Lyn Alden", "url": "https://www.lynalden.com/open-networks/", "record": "https://links.thingelstad.xyz/links/de726db87bc3/" }, { "id": "057542956a6f", "title": "The Speed of Transactions vs the Speed of Settlements - Lyn Alden", "url": "https://www.lynalden.com/speed-of-transactions-vs-settlements/", "record": "https://links.thingelstad.xyz/links/057542956a6f/" }, { "id": "0550d582e11f", "title": "Bitcoin: A Global Liquidity Barometer - Lyn Alden", "url": "https://www.lynalden.com/bitcoin-a-global-liquidity-barometer/", "record": "https://links.thingelstad.xyz/links/0550d582e11f/" }, { "id": "365b6aeb5a7a", "title": "December 2024 Newsletter: The Rise of Digital Assets - Lyn Alden", "url": "https://www.lynalden.com/december-2024-newsletter/", "record": "https://links.thingelstad.xyz/links/365b6aeb5a7a/" } ] }, "same_week": { "count": 16, "nearest": [ { "id": "8e5551d69c71", "title": "Happyfeed - Daily Gratitude Journal App for iOS and Android", "url": "https://www.happyfeed.co/", "record": "https://links.thingelstad.xyz/links/8e5551d69c71/" }, { "id": "f8bc0d31307d", "title": "Domain redirect service hassle-free - redirect.pizza", "url": "https://redirect.pizza/", "record": "https://links.thingelstad.xyz/links/f8bc0d31307d/" }, { "id": "1934cdb20c87", "title": "CheckmateChamp.net: Chess Tactics Trainer", "url": "https://www.checkmatechamp.net/", "record": "https://links.thingelstad.xyz/links/1934cdb20c87/" }, { "id": "e1160973da55", "title": "Inventor of NTP protocol that keeps time on billions of devices dies at age 85 | Ars Technica", "url": "https://arstechnica.com/gadgets/2024/01/inventor-of-ntp-protocol-that-keeps-time-on-billions-of-devices-dies-at-age-85/", "record": "https://links.thingelstad.xyz/links/e1160973da55/" }, { "id": "1041ae2b51ab", "title": "Microsoft Actions Following Attack by Nation State Actor Midnight Blizzard | Microsoft Security Response Center", "url": "https://msrc.microsoft.com/blog/2024/01/microsoft-actions-following-attack-by-nation-state-actor-midnight-blizzard/", "record": "https://links.thingelstad.xyz/links/1041ae2b51ab/" } ] }, "mentions": [], "mentioned_by": [], "saved_twice": [] }, "elsewhere": { "wayback": "https://web.archive.org/web/*/https://www.lynalden.com/bitcoin-network-health/" } }