How Bitcoin is Uncannily Unlocking the Existential Problems Facing Humanity.
In 2008, just after the Banking crash of that year, the mysterious unknown individual, calling himself Satoshi Nakamoto, made public what is now known as the “Bitcoin Whitepaper”, disappearing himself shortly afterwards, without trace, never to be seen or known since.
His paper described an alternative digital monetary system, designed to eliminate the problems we had just experienced with Banks and conventional money.
Before his disappearance, he and some other individuals experimented amongst themselves, forming a small decentralised networked community, testing the first implementations of the Bitcoin code.
At the heart of the code is an algorithm that creates digital tokens; “Bitcoins”, corresponding to the amount of work done to solve a mathematical puzzle.
Each user in the community runs an instance of the code, connected to every other user by a secure peer-to-peer protocol, and every individual can choose to try to solve the puzzle.
Like a brute force attack on something secure, all that is needed for any user to crack a puzzle, is enough computing power, and enough time.
The more computing power, the less time is needed. Higher powered users have a better chance of being first to cracking the puzzle. Only one user can crack a puzzle, after which all users move on to the next puzzle.
Thus each Bitcoin actually requires a certain amount of energy to crack it.
This “Proof-of-Work” activity of solving the puzzles to obtain Bitcoins in return, has become known as “Bitcoin Mining”.
The algorithm is such that at successive milestones, in terms of the number of tokens mined, the mining difficulty throughout the network increases automatically, by making the puzzle more difficult to solve.
The algorithm contains a hard limit of around 21 million which can be produced in total. The puzzle difficulty increases exponentially until then.
The initial Bitcoin community saw its activities as a kind of intellectual money game, where the aim was to compete and/or collaborate with others, to produce tokens.
The community then began to exchange Bitcoins for other things of value, including holdings of other currencies.
The tokens continued to increase in value to an extent which inspired many “Copycat” and spin-off projects, claiming various improvements, some successful some not, but none rivalling the original Bitcoin in value.
Over time, more and more hardware has been needed to continue solving the Bitcoin creation puzzles, to the extent that larger and larger organisations have been needed to be able to compete. Thus also, the energy required to crack each Bitcoin has become steadily greater and greater, with each increase in mining difficulty.
Thus Bitcoin mining has become out of reach of most individuals.
Throughout, Bitcoin has net-gained in value, to the extent that hordes of previously conventional investors leaped in, buying large quantities of Bitcoin and other tokens stock, some to make a “quick killing”. Other investors also got in to hoard longer term.
This pushed the peak Bitcoin price up still further, until at a point in 2017, the price became a bubble, which burst, with the effect of crashing the Bitcoin price from more than twenty thousand dollars, to a few thousand.
All tokens crashed to some extent at that point in 2017, some disappearing completely.
But the Bitcoin miners carried on.
The longer term Bitcoin investors also hung in, and the price again began to appreciate.
But not quickly enough to avoid being caught up by the energy cost.
That cost, even by the cheapest conventional power plants in the world, rivalled the financial value of the Bitcoins being produced.
By some accounts, the power being used to mine Bitcoin throughout the Bitcoin community already rivalled that of a small country.
That statistic, to most who are concerned with the environment, inspired some horror.
What a waste of precious power, so we thought.
It turns out to be very probably, quite the opposite.
The only way Bitcoin could continue to be mined at profit, was if the power could be supplied from infinite free sources.
So Bitcoin started to go green, driven by profit.
In order to maintain mining viability, more and more of the network is now being necessarily converted to be powered from natural infinite sources, including geothermal, wind, and solar.
It turns out that the most scaleable form of power for Bitcoin production, is solar.
As the energy cost of the algorithm continues to increase, so also does the demand for the solar power infrastructure needed to maintain mining viability. The solar energy farms being used to supply the mining network are expanding, and multiplying accordingly.
In effect, the increasing difficulty, and thus the increasing cost of Bitcoin production, baked into the Bitcoin algorithm, is actually driving the implementation of ever increasing amounts of solar power infrastructure.
Around 85% of the 21 million possible Bitcoins have been computed, leaving around 15% still to be yielded.
The energy demand that once might have supplied a small country will continue to expand still further, where that expansion is from now almost exclusively from green sources, mostly solar.
It will keep expanding as long as it must, in order to maintain the viability of mining, in the face of the ever increasing energy cost of mining each Bitcoin.
As things were, using conventional “Zero-sum” power infrastructure, there was no way of getting around the situation of an unprofitable token price, where the cost of energy outweighed the token price. Mining simply had to stop, when the token price dropped below that which it cost to produce more.
But from now, and for the future, the token price will become meaningless in terms of the amount of energy needed to produce it, because that energy is free, after the infrastructure has been built to supply it.
Now, the Bitcoin price will continue to rise, limited only by the rate of solar infrastructure implementation.
The amount of wealth transferred to Bitcoin will continue to increase accordingly.
That will result in a net transfer of wealth, from our conventional fiat money systems, to Bitcoin.
It is impossible to predict the actual final value of Bitcoin in terms of any other (Fiat) currency, as at some point, the proportion of wealth transferred to Bitcoin will render all fiat currencies meaningless.
They will be decommissioned sooner or later, leaving only deterministic commodities like gold, Bitcoin, and other distributed ledger currencies standing alone, to be traded with one another.
When the hard limit of 21 million Bitcoins is reached, all Bitcoin mining will stop.
With only 15% left to mine, this will be reached in only a few years.
In that time, there is no telling what the price will rise to. The more, the better, as this will serve to increase the amount of solar infrastructure implemented.
Then, that solar power infrastructure developed at profit, to power the mining activities on the Bitcoin network, will become available to contribute to, if not completely replace our world’s electricity grids.
By that time, the capacity of that solar power infrastructure will be that of many, many cities. If it is not immediately enough to power the world, it will not require much further expansion, using already available free power, to make it so.
Because the financial outlay of implementing that infrastructure will largely already have been made, effectively, humanity will be almost instantly switched into an infinite free, clean electrical power source.
Energy equates to wealth.
As power is applied in the production of anything, including further solar generation infrastructure, material wealth accrues.
In the case of energy which is completely free, and unlimited, with most individuals being then empowered to create their own localised external supplies of it, one way or another, it will become pointless to try to profit from it, as no matter how much profit any party can make, all people will ultimately have infinite wealth from it in any case.
It will become pointless to hoard savings of any kind as all people will have security of wealth and welfare, regardless of savings. Savings will become seen as something distasteful, against the greater good.
The cost of creating anything will come down to materials alone, which will be bought and sold using crypto-currencies, including Bitcoin.
Implementation of solar powered hydrogen production facilities and the building of new hydrogen distribution infrastructure, and the conversion of oil distribution infrastructure where not already well underway or even completed, will rapidly follow, enabling near-free, alternative green fuel for all existing internal combustion engine driven transports and plants, where those cannot be practically replaced by all-electric propulsion drives.
That will then propagate on to all manner of free services, and for all people.
The cost of any endeavour will come down to the cost of the raw materials needed for implementation alone, and the cost of the food we eat whilst doing it.
People will no longer need to work. They will work at whatever they get pleasure from doing, and they will be rewarded for that alone.
People will no longer need to save.
People will no longer need to go to war, or have war inflicted upon them.
Scarcity will come to have a very specialised meaning, referring only to some examples of food, or rare construction materials.
People will no longer invest financially, they will invest their hearts and souls, in the projects they believe in.
With competition between people eliminated, global scale development projects will appear, such as required for interplanetary spacecraft and fusion power units needed to power them in the absence of our sun.
The future is bright.
The future is the sun.
After all of those things have happened, we will regularly celebrate, with ceremonies akin to the religious celebration of Biblical miracles, that it was all made possible, in fact forced, using a martial-arts-like technique of directing the awful power that profit-making once was, against itself, with devastating precision, with the instrument that is Bitcoin.
We will celebrate Satoshi Nakamoto, a name inspiring in us visions of martial arts, and the rising sun, as a true saint.
The author has no existing holdings of Bitcoin (nor any other tokens), prior to this story, but could certainly do with some. Difficult times for now, another story. If you liked this story, think about contributing. All appreciated.
Bitcoin Address: 33bABw45itMeRuitUq6AdMBMXsDL5tCAf7