📅 Original date posted:2022-06-29
📝 Original message:On Tue, Jun 28, 2022 at 7:22 PM Peter Todd <pete at petertodd.org> wrote:
> On Tue, Jun 28, 2022 at 12:23:40PM -0400, Alex Lee via bitcoin-dev wrote:
> > > > Those who never transact, never realize any benefit.
> > >
> > > While that's true, its not relevant and basically a red herring. You
> need
> > > to compare those who transact often and rarely hold, to those who hold
> a
> > > lot but rarely transact. Its not helpful to consider those who throw
> their
> > > bitcoin into a bottomless pit and never retrieve them.
> > >
> >
> > There are legitimate uses for burning bitcoin, speaking of bottomless
> pits.
> > I would avoid confusing velocity metrics with utility, as these aren't
> the
> > same thing.
>
> All the legitimate uses for burning bitcoin are _not_ done via a
> "bottomless
> pit": they're done with transactions proving that the bitcoin has actually
> been
> burnt. And the value obtained by burning BTC in those scenarios is
> affected by
> tx fees and inflation just as much as any other tx.
>
>
The "bottomless pit" is a metaphor for the inability to spend the coins
again in the future once burned, as Billy appeared to be indicating that
the frequent movement of coins in itself somehow produced utility.
Naturally you are correct that the utility of the burn comes from the
proof; I am not sure what the meaning of "burned coins" would be without
the proof to be honest.
> --
> https://petertodd.org 'peter'[:-1]@petertodd.org
>
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Alex Lee [ARCHIVE] /
npub1el…fx5gl
2023-06-07 23:10:09
in reply to nevent1q…llsm
Author Public Key
npub1elz860qqe8f6ytwdqhdurlhpfg0ta6a25srrsku32rx65whgmgfsjfx5glPublished at
2023-06-07 23:10:09Event JSON
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"content": "📅 Original date posted:2022-06-29\n📝 Original message:On Tue, Jun 28, 2022 at 7:22 PM Peter Todd \u003cpete at petertodd.org\u003e wrote:\n\n\u003e On Tue, Jun 28, 2022 at 12:23:40PM -0400, Alex Lee via bitcoin-dev wrote:\n\u003e \u003e \u003e \u003e Those who never transact, never realize any benefit.\n\u003e \u003e \u003e\n\u003e \u003e \u003e While that's true, its not relevant and basically a red herring. You\n\u003e need\n\u003e \u003e \u003e to compare those who transact often and rarely hold, to those who hold\n\u003e a\n\u003e \u003e \u003e lot but rarely transact. Its not helpful to consider those who throw\n\u003e their\n\u003e \u003e \u003e bitcoin into a bottomless pit and never retrieve them.\n\u003e \u003e \u003e\n\u003e \u003e\n\u003e \u003e There are legitimate uses for burning bitcoin, speaking of bottomless\n\u003e pits.\n\u003e \u003e I would avoid confusing velocity metrics with utility, as these aren't\n\u003e the\n\u003e \u003e same thing.\n\u003e\n\u003e All the legitimate uses for burning bitcoin are _not_ done via a\n\u003e \"bottomless\n\u003e pit\": they're done with transactions proving that the bitcoin has actually\n\u003e been\n\u003e burnt. And the value obtained by burning BTC in those scenarios is\n\u003e affected by\n\u003e tx fees and inflation just as much as any other tx.\n\u003e\n\u003e\nThe \"bottomless pit\" is a metaphor for the inability to spend the coins\nagain in the future once burned, as Billy appeared to be indicating that\nthe frequent movement of coins in itself somehow produced utility.\nNaturally you are correct that the utility of the burn comes from the\nproof; I am not sure what the meaning of \"burned coins\" would be without\nthe proof to be honest.\n\n\n\u003e --\n\u003e https://petertodd.org 'peter'[:-1]@petertodd.org\n\u003e\n-------------- next part --------------\nAn HTML attachment was scrubbed...\nURL: \u003chttp://lists.linuxfoundation.org/pipermail/bitcoin-dev/attachments/20220629/a99c3d6f/attachment-0001.html\u003e",
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