P01 - proof of study
notes session 10.13.23 [812036]
Report: #Bitcoin First Revisited by Fidelity Digital
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The primary value driver of bitcoin tokens is scarcity and a reliable supply cap of 21 million units
Based on this scarcity, bitcoin is uniquely positioned to be the primary monetary good and another digital asset is not likely to supersede bitcoin in this role
While Bitcoin is not the most scalable, it is currently the most secure and decentralized network at the base layer
A centralized blockchain is simply a database and these have existed for decades
The decentralized blockchain employed by Bitcoin is the radical innovation and offers the important qualities of immutability, seizure resistance, censorship resistance and trustless design
Bitcoin is a global open-source protocol for value transmission
In contrast to TCP/IP, ownership of the base layer is possible via purchasing bitcoin tokens
Each bitcoin token is divisible into 100 million smaller fractions called Satoshis
Every application built on Bitcoin increases the value of the network and therefore also increases the value of ownership tokens for the network which are called bitcoins (lowercase b for the asset, capital B for the network)
Lightning is a layer two application built on top of the Bitcoin base layer
Lightning is a decentralized network that allows off-chain transactions between persons with the ability to make final settlement on the base layer
Lightning increases Bitcoin’s scalability while maintaining Bitcoin’s security with the option to settle any time on the base layer
It is beneficial for investors seeking to better understand digital assets to separate Bitcoin and all other digital assets into separate categories
bitcoin is the scarcest monetary asset in human history and deserves to be considered separately from all other experimental tokens in the digital asset space that are separate from Bitcoin
While nation state attacks and protocol bugs remain risks to Bitcoin, those risks continue to diminish each day as the network grows stronger with more users, miners and infrastructure being built
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21min
pgs 15-19
