The Importance of Economic Velocity on Earth Day

Today, on Earth Day, let’s delve into the eco-friendly aspects of Bitcoin and why it matters. Stay tuned for an enlightening discussion, my friends!

In the realm of blockchain technologies, BSV distinguishes itself with a unique approach to scalability: no limits on block size and a highly optimized version of the original Bitcoin protocol. This strategic decision is not just technical but foundational, empowering BSV to process more transactions per block—similar to trains accommodating more passengers per trip.

In essence, being environmentally conscious boils down to efficiency. It’s about maximizing the output from the energy invested in any task!

To draw a parallel: If BTC is akin to a train capable of transporting around 2,500 individuals per journey, then BSV is like a high-speed train facilitating millions of passengers per trip. Clearly, the latter is more efficient, wouldn’t you agree?

Think about the exorbitant amounts spent daily on wasted energy solely to safeguard the wealth of a privileged few who can afford to participate in the system! That’s the predicament with BTC.

This deviates from the original vision of revolution that Bitcoin was intended for.

This enhanced capacity plays a pivotal role in bolstering a fundamental aspect crucial for economic well-being, as highlighted by economists like Ludwig Von Mises: the velocity of money.

The velocity of money, which gauges how rapidly money circulates through transactions, sheds light on the economic efficiency and vitality of a system. Mises, a notable figure in the Austrian School of Economics, contended that a higher velocity signifies a more dynamic economy. By potentially increasing transaction throughput, BSV aims not only for technical excellence but also for a tangible economic impact, striving to be a blockchain that fosters robust economic activity. This stands in stark contrast to BTC’s inclination towards reduced productivity as it hoards value without contributing.

Economic Principles Supporting BSV’s Strategy

A key concept from Ludwig Von Mises regarding economic policy underscores the significance of money velocity. Mises emphasized that the frequency of money circulation is a critical aspect of a thriving economy, which is a primary reason why proponents of larger blocks advocate for such a system. This also explains the criticism directed towards individuals like Saifedean Ammous, who attempt to steer BTC towards an asset contrary to Austrian economic theory. The truth is, Austrian economists advocated for the circulation of hard money as a gauge of economic health. They recognized the efficacy of sound money in fostering more liberated, liquid, and accessible commerce for all.

Mises envisions a sustainable future through Bitcoin

Technological Advancements and Efficiency Gains

BSV’s strategic choice to enable the expansion of block size until global adoption transforms its scalability and efficiency paradigm. Unlike BTC, which expends substantial energy to produce 1MB blocks, BSV’s design allows for the creation of significantly larger blocks with proportionally lesser energy consumption.

While ASIC hashing rigs play a central role in the mining process, their energy usage is not directly tied to the size or number of transactions in each block. Rather, it serves as a measure of mining difficulty, making the high hash rate in BTC seem wasteful. Conversely, larger blocks like those in BSV do not demand exponentially more energy for hashing, marking a significant departure from BTC.

Social Advantages and Considerations

BSV’s capability to efficiently process large blocks brimming with valuable, economically impactful transactions not only showcases its technological prowess but also its potential to drive substantial societal benefits. The scalability of BSV could substantially elevate transactional throughput, positioning it as a robust foundation for global financial transactions. The possibilities here are boundless. Picture replacing industry giants like Mastercard, Visa, Swift, FedWire, with Bitcoin, enabling near-instant, nearly cost-free commerce for every individual on the planet! This potential aligns seamlessly with the broader societal good, akin to other critical services that consume significant energy.

Just as society tolerates the energy consumption of hospitals due to the essential services they offer, BSV’s energy consumption can be viewed through a similar lens. While it requires energy, the economic and social utilities it delivers justify this expenditure. The network’s capacity to enhance economic velocity—facilitating swift, large-scale transactions—mirrors the indispensable functions of other vital infrastructure supporting societal operations.

In Conclusion

With its capacity to scale to global commerce levels, BSV not only pushes the boundaries of transaction volume but also sets new benchmarks for energy-efficient digital transactions, offering hope to the economically disadvantaged to connect with the global digital economy.

This innovative approach harnesses the principles of economic velocity, as advocated by economists like Ludwig Von Mises, to ensure optimal utilization of every kilowatt of energy. By augmenting the number of transactions per block, BSV spreads the energy cost across a larger transaction volume, consequently enhancing economic output per unit of energy consumed.

The societal advantages of BSV are evident: it presents a scalable, efficient solution that could serve as the cornerstone for a novel global financial ecosystem. As technology progresses and more sustainable transaction processing methods are embraced, BSV stands poised to further reduce its environmental footprint. We encourage further exploration, discourse, and engagement with BSV as a sustainable blockchain technology, aiming to challenge and revolutionize the global instant payments and cash market—a multi-trillion-dollar opportunity for disruption. The potential for BSV to significantly contribute to a greener and more efficient global economy is vast, and delving into these prospects is not just advantageous but imperative for the future of finance and technology.

New to blockchain? Explore CoinGeek’s Blockchain for Beginners section, the ultimate resource guide for delving deeper into blockchain technology.