Why Bitcoin Is Not Enough: "All these coins stealing market share f...

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This is a value for value post: see the explanation in the footer.

Once again the Bitcoin Maxis 🦃 are cheering for the SEC 🎄

The FT (archive link) is quoting Brian Armstrong of Coinbase:

“They came back to us, and they said . . . we believe every asset other than bitcoin is a security,” Armstrong said. “And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than bitcoin.”

If Coinbase had agreed, that could have set a precedent that would have left the vast majority of the American crypto businesses operating outside the law unless they registered with the commission.

And as usual BTC Maxis are acting as if this is a good thing for the world and cheering on the SEC.

https://twitter.com/JessicaVaugn/status/1685874225859727360
- JessicaVaugn

I'm sure I could find much more of this kind of sentiment (but searching on Nostr is almost impossible).

I find Jessica's comment particularly interesting:

All these coins stealing market share from bitcoin ....

Let's unpack that a bit with something I helped build here on Hive, Podping.

Podping is

Podping is a global message bus for podcast infrastructure events. Entities that publish feeds can "write" events into the system and those events are then visible to all parties who "watch" for them. Anyone can watch/monitor for events and respond appropriately, depending on their needs. It was developed as an alternative to WebSub and rssCloud which both have major drawbacks when it comes to podcasting infrastructure.

Podping carries

Currently, as anyone can see if they dig into the public stats on podping.org, Podping sends out notifications for between 500 and 2000 new podcast episodes per hour. It does this via custom_json data on Hive.

These are picked up and processed by a number of podcast indexing sites and by Podcasting 2.0 Apps which use these to notify of live events.

Data rate

Podping is putting out between 50 and 250 KB per hour of data. Not very much in the global scheme of things, but phenomenally useful for the entire podcasting industry and growing in usefulness as more an more hosts and clients discover the utility of live notifications.

Maths

Now let's see if Bitcoin could "take market share from Hive" and help with Podping. Before I'll even do this, however, Bitcoin's 10 minute blocks make this completely pointless. Podping relies on messages going out within a few seconds so this calculation of the cost is somewhat academic because already on that score alone, Bitcoin can't be used.

Here's what ChatGPT had to say about the cost:

If you want to post 200 KB of data per hour in 1000 transactions, we can calculate the cost as follows:

Calculate the Size of Data per Transaction:
```
200 KB / 1000 transactions = 0.2 KB per transaction
```
Since each transaction in our previous example was 399 bytes (including the 211 bytes for the JSON data), we can assume that the constant part of the transaction (without the data) is 188 bytes.

Now, if each transaction is 0.2 KB (200 bytes) including the data, then the data portion is:
```
200 bytes - 188 bytes (constant part) = 12 bytes
```
So, each transaction would have a total size of:
```
188 bytes (constant part) + 12 bytes (data) = 200 bytes
```
Calculate the Total Cost per Transaction:

Using the rate of 10 sat/Vb:
```
200 bytes * 10 sat/Vb = 2,000 satoshis per transaction
```

Calculate the Total Cost for 1000 Transactions:

2,000 satoshis/transaction * 1000 transactions = 2,000,000 satoshis

So, the total cost to post 200 KB of data in 1000 transactions at the given rate would be 2,000,000 satoshis.

Again, it is worth noting that these numbers are only rough estimations, and the actual cost may vary depending on many factors. It's also worth considering the ethical and practical implications of using the Bitcoin blockchain for such purposes, as it is not designed for storing arbitrary data, and this practice may be frowned upon by the community. Other solutions like IPFS or specialized blockchain storage solutions might be more appropriate and cost-effective for storing large amounts of data.

What is 2,000,000 sats per hour

Right now that is just shy of $600 per hour it would cost to write to the bitcoin blockchain. Noe that I used 10 sats/vB. That's what it is around now but last month it was up over 50x that. So $30,000 PER HOUR to run Podping during a fee spike!

I've been running my Lightning Node for v4v.app for a couple of years now. Lately I've been doing a bit of routing traffic and picking up sats for it. Over the last YEAR I've earned less than 2m sats.

Cost on Hive

So the cost of running all this on Hive is really just the cost of HOLDING about $7,000 worth of Hive as Hive Power. That supplies the resource credits for the whole system.

There are some podcast hosting looking at sending Podpings out via their own Hive accounts and infrastructure and as and when they do this, they would be using their own Hive Power invested to use the system.

Bitcoin is not the only blockchain or use of a blockchain

It's just ridiculous to think that you know everything. In the past I've used the term Bitcoin maxi shitcoin paradox.

Bitcoin, which exists because it incentivises hardware operators via inflation to run the system by paying them at the core protocol level, is the most revolutionary tech ever and changes the world.
Any other system which uses the same cryptographic and technological ideas to incentivise hardware operators to run any other system at the core protocol level, is shit.

And yet none of these people can figure out a way for me to run Podping such that I don't have to own and manage all the infrastructure but yet nobody else can shut it down or block any given message from going out on it.

The conceit of this point of view is to make up one's mind that "All these imposters are unregulated securities" without actually doing the work to find it out.

Why grant the SEC any legitimacy?

And WHY does anyone submit to the idea that the SEC should be allowed to "regulate" securities when they've done such a shitty job for so long at actually protecting investors from "regulated" investments like Madoff, FTX or any of the the long list of frauds which they failed to take action against BEFORE the little guys lost their money.

Hive's incentives

Hive's in built financial incentives are the reason why Podping can run on Hive and the blockchain roots of Hive are integral to that. There's no getting away from this.

Value for Value

For the last few months while building @v4vapp I was generously supported by the DHF. Going forward I have a much more modest support which covers direct server costs and a little of my time.

If you appreciate the work I do on and around Hive, you can express this directly: upvoting posts on Hive is great. Also consider a direct donation (there's a Tip button on Hive or a Lightning Address) on all my posts.