Is bitcoin the Peer-to-peer electronic cash system it was designed to be?
Some thinks that it must be able to facilitate buying coffee in order to be cash system. Wrong.
Even if you make the block size 100GB, you cannot use it to pay for coffee if the wait time is 10 min. The block size have nothing to do with making immediate payment with full settlement.
Peer-to-peer electronic cash... its important to understand the meaning of the word "cash". Cash does not mean fast and immediate (even though it can be in different circumstances). It meant once it change hands, the custody is on the other side, thereby traditionally it is physical cash.
Why it does not necessarily meant it will be fast and cheap? If you have $10 or $10mil in cash, if you want to buy anything that is not within hand-reached, it will be slow and costly. If you want to send physical cash of $10 or $10mil to someone 100km away, it will be expensive and slow.
So, bitcoin with it's 10 min confirmation and if you wanna wait even 6 confirmation, an hour for final, permissionless settlement, where custody is transferred to the receipient in finality, bitcoin is peer-to-peer electronic cash system.
mykopikid
npub1rw…yq2h4
2024-07-14 05:38:43
Author Public Key
npub1rwep9zudeedgxu55v28s5t2tv3ud3se606rvdrnxsmjvcar0yx4smyq2h4Published at
2024-07-14 05:38:43Event JSON
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"pubkey": "1bb2128b8dce5a837294628f0a2d4b6478d8c33a7e86c68e6686e4cc746f21ab",
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"content": "Is bitcoin the Peer-to-peer electronic cash system it was designed to be?\n\nSome thinks that it must be able to facilitate buying coffee in order to be cash system. Wrong.\n\nEven if you make the block size 100GB, you cannot use it to pay for coffee if the wait time is 10 min. The block size have nothing to do with making immediate payment with full settlement. \n\nPeer-to-peer electronic cash... its important to understand the meaning of the word \"cash\". Cash does not mean fast and immediate (even though it can be in different circumstances). It meant once it change hands, the custody is on the other side, thereby traditionally it is physical cash. \n\nWhy it does not necessarily meant it will be fast and cheap? If you have $10 or $10mil in cash, if you want to buy anything that is not within hand-reached, it will be slow and costly. If you want to send physical cash of $10 or $10mil to someone 100km away, it will be expensive and slow. \n\nSo, bitcoin with it's 10 min confirmation and if you wanna wait even 6 confirmation, an hour for final, permissionless settlement, where custody is transferred to the receipient in finality, bitcoin is peer-to-peer electronic cash system.\n",
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}