Bitcoin Prime

Dec. 04, 2017 10:07 PM ETGBTC, COIN-OLD, BTC-USD4 Comments
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The Angry Bear

By Robert Waldmann

Also know as collectors vintage bitcoins.

This is a crazy idea with no redeeming social value.

BitCoin is valuable only because people expect it to be valuable in the future. I am sure there is BitCoin bubble, but it wouldn't be that strange for for something useless to be valuable. Cancelled stamps may be valuable. Old coins have numismatic value. Old coins hmmm … pity BitCoins are just numbers uh first recorded on a given date … hmmm

OK so I want to invent the Vintage BitCoin blockchain. The idea is that it is a subset of the BitCoin blockchain with only BitCoin awarded to miners before 2011. It would not be very hard to create this.

It is important that it remain a subset of the bitcoin blockchain so updated with edited down bitcoin blocks.

OK before going on here is the Bitcoin wiki (which is pretty much all I know).

To be even briefer, Bitcoin is just the bitcoin ledger, that is, a record of all bitcoin transactions. Each transaction has a payer, receivers and a number (an amount of bitcoin). Bitcoin is a quantity a measure - there aren't identifiable bitcoins with serial numbers. In a valid bitcoin transaction the payer lists as "input" the transactionw by which he or she got the amount of bitcoin. These must not have been used as input before (you can't spend the same bitcoint twice). A proposed transaction is sent out over the web and joins the pool of proposed (but not yet validated) transactions.

Bitcoint "miners" check transactions and form blocks of valid transactions. Then they do pointless math which is there just to slow down the creating of bitcoin blocks. The pointless math is that a block must be an approximate root of the bitcoin hash function which I will call F. I have to define a function G such that G(a,b) = F(a+b).

The block is a bunch of ones and zeros. the N+1st block starts with G(the Nth block) (this is important). then there are the valid transactions which were in the pool of proposed transactions. They are described with text and numbers, but it is all 0s and 1s on the web. The miner then claims a reward, so the block includes her identifier and the statement "receives 12.5 bitcoin". So far the block is a huge number which I will call x. Then there is the "nonce" y which is any number such F(x+y) < epsilon. For very small epsilon it is very hard to find such numbers. It is very easy to check. Then the other miners all check the block. They check that it is made of valid transactions which have not yet been validated and that it is close to a root. The block is of the form (x,y) that is both the useful record of transactions and the pointless nonce are recorded separately. The amount of the award was originally 50 and is divided by 2 every 210,000 blocks. The difficulty epsilon is adjusted so that one block is added every roughly 10 minutes (after 2016 new blocks are made it is adjusted so that it would have taken an expected 2 weeks to make those blocks -- the hash function is well understood but not by me). The awards are the only way new bitcoin is created. To make a vintage bitcoin block, one has to check that transactions trace back to an award for a block made before January 1 2011. Sadly the vintage bitcoin inventor can't award bitcoin for making such a block. They can only be rewarded with a record of another quantity (I call it prime for the part of bitcoin prime which isn't bitcoin) which might or might not be worth anything. To make up for this, the difficulty of making vintage bitcoin blocks can be set to quite easy. Now I need to make a ledger of transactions of prime. I would put them in with the transactions of filtered bitcoin in the vintage bitcoin block (clearly marked). The modified program guarantees a fixed supply of prime which might be worth something. Also the vintage bitcoin might be worth more than plain ordinary bitcoin. This is totally pointless. Really a reducto ad absurdum of bitcoin. There is a rival blockchain to Bitcoin which forked off August 1 2017, so someone has been playing my sort of game (they have a justification, but I think they were mostly playing).

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In 2010 24/7 Wall St. named Angry Bear among the top twenty independent financial blogs on the net. Quote: "The Angry Bear Half a dozen professionals, including a tax law expert, a historian, PhDs in economics, business consultants and financial professionals provide perspectives on the financial world. Despite their expansive coverage of economic issues, their articles are as deep as their coverage is extensive. Topics include world trade, industrial production, U.S. Government programs, and major regulatory issues." 2010 FINS from The Wall Street Journal named Linda Beale's Ataxingmatter in The Top Five Tax Accounting blogs to read for 2009-2010. Our current economists are Mike Kimel, Spencer England, Robert Waldmann, and Rebecca Wilder. Linda Beale is an expert in tax law and matters related to taxes. Ken Houghton has expertise in finance. Bruce Webb has added his expertise in particular on Social Security. Daniel Becker brings a small business perspective to his writing. Daniel Crawford: aka Rdan and Angry Bear blog Bios in alphabetical order: Linda Beale: I am a law professor at Wayne State University Law School who teaches various courses in the area of federal income tax, such as introduction to federal income tax, corporate taxation, partnership taxation, international taxation and perhaps in the future a course in statutory interpretation focussed on tax. Daniel Becker: I have two businesses: a practice in the health care field and a retail business of flowers and plants. I have served as an officer of 2 non-profits and my state society. I have testified before my state legislature. I have personally won in my state supreme court. Ken Houghton: A principle in his own company and former economist for several major financial companies. Spencer England: Before I started my own consulting business I was an economist for the CIA for 10 years and worked for a couple of Boston investment management firms as their in house economist, investment strategist for some 12 years. My original field of study was international economics and international finance. I celebrated the 20th anniversary of publishing SEER -- my equity strategy product. I model the S&P industries and advise portfolio managers on how to structure their portfolios by recommending industry weights. Mike Kimel: Formerly an economist for a Fortune 500 company and now an economist for a private corporation and author of Presimetrics blog and the book Presimetrics: How Democratic and Republican Administrations Measure Up on the Issues We Care About to be published August 2010. The book can be pre-ordered. RobertWaldmann: I have a PhD in economics (Harvard 1989) and teach economics at the University of Rome "Tor Vergata". Oddly, I don't blog much at my own site rjwaldmann about economics or Italy. As an economist (roughly) I am interested in behavioral economics, growth, and the economics of inequality. Actually much of my current research, such as it is, is really in econometric methodology and statistics. I was very unorthodox in the 80s, but the orthodoxy is much less rigid now. Bruce Webb: is a current member of the National Academy of Social Insurance (NASI). I am by training a historian who then has spent my working career in information retrieval and land use regulation. My interest in Social Security arose when I noticed in passing that the dates related to 'crisis' were moving but that nobody seemed to be noticing that and still less asking the key questions 'why?' and 'can this go on?' Rebecca Wilder: After receiving my Doctorate in Economics, I was an assistant professor for two years. However, I realized that teaching just wasn't for me and took a job in private sector. Now, I am an Economist in the financial industry. As an economist in finance, I analyze data, write commentary, and offer economic insight to traders, chiefs of staff...
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