From: skybuckflying@gmail.com   
      
   Bitcoin scalability & financial & competition problems and solutions:   
      
   Link to youtube video discussing the above topics:   
      
   https://youtube.com/live/zT0fs8KtaG8   
      
   List of concepts discussed/tags of video:   
   Bitcoin, Problems, Scalability, Financial, Costs, Competitor, Solutions,   
      
   Distribution, Coins, Bittorrent, Merkle Hash Tree, Tree Numbering, Tree Node   
   Number   
      
   Translation, Redundancy, Risks, Storage, Root Hash, Intermediate Hash, Binary   
   Tree,   
      
   Growing Binary Tree, Tree Storage, Energy, Magnets, Glass, Lasers, Holy, 3D   
   Glass,   
      
   Seeking, Bandwidth, Network, Scanning, Number of Peers, Number of Nodes,   
   Number of   
      
   Blocks, Tree Blocks, Virtual Tree, Computational Tree, Partial Tree, Bitsets,   
      
   Compressed Bitset.   
      
   17 FEBRUARY 2023 BY SKYBUCK FLYING.   
      
   (Sorry for Caps, don't mean to scream or anything, just makes it a bit easier   
   to   
      
   read on highly compressed video images)   
      
   Lately I have been thinking about the "financial costs" of the banking system.   
      
   Today I also more or less considered the "financial costs" of bitcoin.   
      
   And I more or less came to the conclusion that bitcoin might actually be more   
      
   expensive then the centralized banking system in a certain way, if true then I   
   think   
      
   this high financial cost problem should be solved.   
      
   Bitcoin should be cheaper than the centralized banking system and not more   
      
   expensive.   
      
   I AM GOING TO DISCUSS THREE IMPORTANT TOPICS IN THIS VIDEO:   
      
   1. THE FINANCIAL COSTS OF BITCOIN AND HOW TO REDUCE IT.   
      
   2. THE SCALABILITY PROBLEM OF BITCOIN AND HOW TO REDUCE/SOLVE IT. THE   
   SCALABILITY   
      
   PROBLEM ALSO AFFECTS/CAUSES TO FINANCIAL PROBLEM TO A CERTAIN DEGREE. IT ALSO   
      
   RELATES A LITTLE BIT TO THE MINING PROBLEM.   
      
   3. THE COMPETITOR PROBLEM.   
      
   4. THE MINING PROBLEM/COIN DISTRIBUTION PROBLEM.   
      
   THE MOTIVATION HERE:   
      
   IS DRIVING DOWN COSTS, BECAUSE COSTS ARE EXPLODING ACROSS EUROPE AT LEAST AND   
   MAYBE   
      
   THE WORLD, POSSIBLY DRIVEN BY POLITICS, GREEN MOVEMENT, DRIVING UP PRICES   
      
   ARTIFICIALLY, ENERGY CRISIS, ENERGY PRICE HIKES AND ALSO SOME WAR AND TRADE   
   BANS AND   
      
   KICKING COUNTRIES OUT OF THE FINANCIAL SYSTEM/SWIFT.   
      
   LIFE IS BECOMING EXPENSIVE, HOW TO REDUCE COSTS ?!   
      
   COMPETITION IS GOOD, BITCOIN COULD BECOME A COMPETITOR FOR THE FINANCIAL   
      
   BANKS/SYSTEM AND OFFER A CHEAPER ALTERNATIVE....   
      
      
   TO MAKE THE BITCOIN PROBLEMS PERFECTLY CLEAR IT HELPS TO EXAGARETTE THE   
   PROBLEMS.   
      
   EUROPE CASE: IMAGINE IF 300.000.000 IN EUROPE START USING BITCOIN.   
   WORLD CASE: PROBLEMS WILL BE EVEN BIGGER IF 7.000.000.000 BITCOIN.   
      
   THE BITCOIN PROBLEMS:   
      
      
   1. THE FINANCIAL COSTS/PROBLEM AND WHAT CAUSES IT.   
   &   
   2. THE SCALABILITY PROBLEM.   
      
   BASICALLY EVERYBODY, EVERY FULL NODE HAS TO COPY/DOWNLOAD THE ENTIRE   
   BLOCKCHAIN AND   
      
   THIS LEADS TO THE SITUATION WHERE EVERYBODY THAT WANTS TO RUN A FULL/SECURE   
   NODE OF   
      
   HAVING TO BUY AT LEAST A VERY BIG EXPENSIVE HARDDISK.   
      
   300.000.000 X 1 HARDDISK X 500 EURO = 150.000.000.000 EUROS   
      
   NOW COMPARE THAT TO BANKS,CENTRALIZED BANKS   
      
   THE ONLY NEED A FRACTION OF THESE AMMOUNTS OF HARDDISKS   
      
   BANKS REQUIRE MUCH LESS HARDDISKS IF THEY USE A CENTRALIZED SYSTEM.   
      
   ALSO MAKING ALL THESE COPIES, REQUIRES A LOT OF BANDWIDTH AS WELL, ALSO A LOT   
   OF   
      
   PROCESSING POWER, WHICH ALSO MEANS MORE ENERGY ETC.   
      
   TRANSACTION COSTS FOR BITCOIN ARE QUITE HIGH, BECAUSE STORAGE SPACE IS SO   
   LIMITED,   
      
   IT IS BEING USED INEFFICIENTLY, BECAUSE OF ALL THESE MANY COPIES.   
      
   IF THE NUMBER OF COPIES WAS REDUCED AND INSTEAD THE HARDDISK SPACE MORE   
   EFFICIENTLY   
      
   USED, THIS COULD ALLOW THE BLOCK-SIZE OF BITCOIN TO BECOME BIGGER/LARGER AND   
   WOULD   
      
   ALLOW MORE TRANSACTIONS TO BE STORED IN THIS BLOCK, BASICALLY ALLOWING MORE   
      
   TRANSACTIONS PER 10 MINUTES, BASICALLY MORE TRANSACTIONS PER MINUTE BASICALLY   
   AND   
      
   WOULD RELIEF SOME OF THE PRESSURE ON THE SYSTEM, BECAUSE BASICALLY USERS OF   
   TODAYS   
      
   BITCOIN HAVE TO COMPETE WITH EACH OTHER TO GET THERE TRANSACTION THROUGH,   
   BECAUSE   
      
   THE TRANSACTION STORAGE SPACE IS LIMITED AND ONLY THE TRANSACTIONS WHICH OFFER   
   THE   
      
   HIGHEST TRANSACTION FEES ARE PROCESSED AND STORED IN THE BLOCKCHAIN...   
      
   IF EVERYBODY WOULD START USING BITCOIN IN IT'S CURRENT FORM IT WOULD DRIVE UP   
      
   TRANSACTION COSTS AND WOULD MAKE BITCOIN EVEN MORE EXPENSIVE.   
      
      
   THE MORE OR LESS CURRENT FINANCIAL BANKING SYSTEM COSTS ESTIMATION:   
      
   IT COSTS MONEY TO HAVE A BANKING ACCOUNT.   
      
   4 EURO PER MONTH FOR AN BANKING ACCOUNT.   
      
   EUROPE CASE:   
   300.000.000 PEOPLE x 12 MONTHS X 4 EURO = 14.400.000.000 EUROS PER YEAR.   
      
   EVERY BANK TRANSACTION MORE OR LESS COSTS:   
      
   15 EURO CENTS.   
      
   BUT SOME MIGHT BE MUCH MORE EXPENSIVE LIKE INTERNATIONAL TRANSACTIONS.   
      
   THIS COULD PROBABLY ADD ANOTHER FEW BILLION TO THIS COST NUMBER.   
      
   I DON'T KNOW THE EXACT COSTS HERE...   
      
   BUT THERE IS AN INCENTIVE FOR BANKS TO GET RID OF COMPETITORS INCLUDING CASH...   
      
   SO THAT IF EVERYTHING GOES VIA THEIR SYSTEMS, IT WILL DRIVE UP TRANSACTIONS   
   AND THUS   
      
   THEY CAN ALSO MAKE A BIG PROFIT.   
      
   ROUGHLY SPEAKING AFTER 10 YEARS, BITCOIN AND BANKS ARE BREAK EVEN, EXCEPT BANKS   
      
   ACTUALLY SERVE A MUCH LARGE COMMUNITY.   
      
   RIGHT NOW I WOULD ESTIMATE BITCOIN AND BANKS ARE BREAK EVEN AFTER 10 YEARS, SO   
      
   CURRENTLY THERE IS NO REAL COST REDUCTION, WHICH SUCKS.   
      
   3. THE COMPETITOR PROBLEM.   
      
   BANKS HAVE WAKEN UP, CENTRALIZED BANKS HAVE WAKEN UP, AND THEY HAVE BECOME A   
   BIT   
      
   NERVOUS ABOUT THIS BITCOIN TECHNOLOGY... THEY SEE IT AS A POTENTIAL THREAT TO   
   THEIR   
      
   BUSSINESS/BUSSINESS MODEL AND THEY WORRY ABOUT BITCOIN IF IT WOULD EVOLVE INTO   
      
   SOMETHING MORE EFFICIENT... THEN BITCOIN COULD BECOME A SERIOUS COMPETITOR FOR   
      
   BANKS.   
      
   FOR NOW THE BANKS HAVE STARTED PLANNING, WHICH YOU MAY HAVE HEARD OF, A   
   CENTRALIZED   
      
   DIGITAL CURRENCY/BANKING SYSTEM. BASICALLY SOME KIND OF DISTRIBUTED LEDGER   
   SYSTEM   
      
   AMONG BANKS THEMSELFES... AND THEN LIGHT CLIENTS WOULD PROBABLY COMMUNICATE   
   WITH   
      
   THESE HEAVY NODES RUNNING AT THE CENTRALIZED BANKS.   
      
   I REFER YOU TO GEORGE GAMMON'S YOUTUBE VIDEOS ABOUT THIS AND OTHERS THEN   
   DISCUSS IT   
      
   IN MORE DETAIL HOW THAT COULD WORK AND HOW IT WOULD EFFECT THE FINANCIAL   
   SYSTEM.   
      
   TO SUM UP GEORGE GAMMON'S HYPOTHESIS OF HOW THIS WOULD WORK:   
   1. COMMERCIAL BANKS WOULD KEEP SERVICING/MAKING LOANS TO COMMERCIAL   
      
   ENTITIES/ENTERPRISES/BUSSINESS.   
      
   2. THE CITIZEN ACCOUNTS WOULD TRANSFER/TRANSITION FROM THE COMMERCIAL BANKS TO   
   A   
      
   CENTRALIZED BANK, THIS CENTRALIZED BANK WOULD THEN GET A LOT OF INSIGHT INTO   
   THE   
      
   TRANSACTIONS OF ALL THE CITIZENS.   
      
   3. THE COLLECTION OF DATA ABOUT CITIZENS, FACE SCANNING, MOUTH SCANNING AND   
      
   PASSING/COLLECTING OF DATA OF BUSSINESS ANYWAY <- MIGHT BE INEVITEABLE.   
      
      
   [continued in next message]   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)