Commodities vs. Assets-- BitCoin as computational commodity
The extraordinary vision to commoditize today's cloud assets (AWS, iCloud, Firebase, etc...).
by John Pitts
Dedicated to: Malcolm McLean & Dr. Craig S. Wright-- whose visions for faster, cheaper, more secure, worldwide shipping containers improved every civilization on earth-- TWICE during the author's lifetime!
What are commodities?
Oil is an asset; a barrel of oil is a commodity. A silver spoon, a silver ore nugget, and the Queen’s silver crown are silver assets; the Roman denarius, the Spanish “pieces of 8” coins, and the American silver dollar are commodities. When you slaughter a cow on your yard to slice up and have your family eat it for sustenance, that’s an asset. When the USDA grades a huge slab of beef “Prime” in a Chicago meat-packing plant, it’s using a fat-marbling PROTOCOL to create a commodity. Commodities are supposed to be interchangeable for a reason: efficiency.
What are some of the most important ways to measure commoditization efficiency? Cost, Speed, Security & Universality
Cost: How cheap can we send value? What’s more attractive: a $20 fiat Wire Transfer, or $0.0002 BitCoin transaction fee? Here’s a simple question: If a monetary transaction costs a lot of money, and the main expense of computers is electrical energy, can that transaction network possibly be energy efficient? 🤔
Speed: How fast can we move an asset? In food shipping this is obvious, as items like seafood taste better the less amount of time they spend in transit to the market. The same can be true in digital "shipping". Did the Fortnite Tournament prize money go to the best player, or was the match decided by the difference in network latency for the Florida player versus the Vietnamese player whose avatar didn’t get his winning shot off even though he clearly pressed the trigger before his opponent? A transaction can have a large negative value, in something like eSports, if it cost a player a $1 million prize because it was too slow.
Security: How much waste and/or pilfering can be eliminated? If a central authority can decide that an investment product was hacked, but its solution is worse than doing nothing at all — wouldn’t it be better to have a system which can democratically make fast decisions based upon a pre-agreed protocol? Barrels carrying oil should not break easily, should not be easily stolen/siphoned, and should be easy to verify as carrying oil and not heroin by measuring a uniform weight without opening the bunghole. Security in bitcoin means knowing the money you received wasn’t double-spent — like knowing your husband isn’t maintaining a second wife and family on the other side of the river.
Universality: What percentage of a worldwide system can be made low-cost, high-speed, and with top notch security? If you have to pay $20 to your bank for a wire transfer of $1,000 US dollars to Coinbase, then $50 mining fee plus a $14.90 variable Coinbase fee to convert the $1,000 into btc plus another $50 mining fee to transfer btc to another exchange such as Bittrex plus yet another $50 mining fee to trade the btc for an digital good which is less “fee-happy”, then even small costs tend to build up over time. Likewise, if you’re using BitCoin and it is accepted by only 1% of the world’s businesses, you’re going to spend a lot of wasted fees and time on-ramping and off-ramping to fiat. Did you ever have the wrong currency in your pocket at a Swiss train station when you needed to use the wash-closet? Universal acceptance matters!
In a previous article ( [0] ‘What is BitCoin?’ Zen Yotta Mund Data) the commoditization of island-city LAND was proposed as an excellent comparative to BitCoin due to it’s limited amount. Here we briefly point to another fruitful comparative — the shipping container. In ‘What is Money?’ ( [4] “the Wampum article”) bitcoin is compared to the commoditization of sea shells, oil, and electricity; whereas, shipping containers provide an example of the commoditization of a haphazard asset market — shipping — to emphasize the COMMODITY nature of BitCoin.
Not just ANY protocol will lead to massive amounts of efficiencies, including energy costs, but a well-planned commodity protocol will last generations and have many many things built on top of it. Containerization of shipping helps us see, via historical precedent, what the commoditization of (cloud) computing can truly accomplish!
A BitCoin is a standardized container, but for goods which are invisible —> information
In 1956 the first standard shipping container ship, named “Ideal X”, began it’s journey from Port of Newark NJ to port of Houston, Texas carrying about 60 aluminum uniform-sized shipping containers, fulfilling the shipping efficiency dreams of Malcolm McLean. He was the owner of a trucking company who was disappointed with all the wasted time spent moving goods from ship to truck at the wharf. He built shipping containers which could be stacked securely with each other, and were safe from piracy and pilfering. His vision also foresaw the need for intermodal innovations and therefore helped the Southern Pacific Railway to make rail cars which could take a double-stack of containers. Many others extended his vision, and decades later architects would design housing and even shopping centers from containers, and moving companies would create mini-containers which fit nicely into standard shipping containers — a sub-protocol.
How could he possibly look so far into the future, to see that his commoditization of shipping protocol would reduce longshoreman by 66% in just the first 16 years? Did he know that his “fitting” system for lifting, stacking and stabilizing containers would reduce loading prices by more than 99% over the last 64 years? These questions are similar to asking whether BitCoin (SV) will conserve energy and thus produce savings versus the Visa network and Amazon Web Services.
McLean didn’t have the numbers to give anyone as proof in 1956. He relied on fellow visionaries to see what he saw and imagine the savings; likewise, Satoshi Nakamoto didn’t provide the energy answer for BitCoin in his white paper either. However, EFFICIENCY IS WHAT COMMODITIZATION DOES for an asset! ( see [2] for the link to a raw unedited vision-based proto-article on BSV's future energy usage )
No other digital coin other than BitCoin Satoshi Vision (#BSV) creates a STANDARD format for transactions which can change how we do worldwide computing, and all its Nodes MUST enforce that standard. Why? To save time and make money. This is how we increase the efficiency of our worldwide internet by an order of magnitude vs today's cloud assets such as Amazon Web Services, Apple iCloud and Google Firebase-- just like how McLean "do" in 1956 [3].
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
HandCash: $JOHNPITTS
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
REFERENCES:
[0] "What is BitCoin? Zen Yotta Mund Data"-- by John Pitts
https://powpress.org/p/jackpitts@moneybutton.com/10
[1] "Malcolm McLean: He changed your world"
https://movingnorthcarolina.net/malcolm-mclean/
[2] "BitCoin's tail wags the green dog"-- by John Pitts
[3] "how McLean do" = Haitain-American slang from "StartUp" (a Netflix series)
How Ronald Dacey of GENcoin do... 🤣
[4] "What is Money? How smart coders can miss BitCoin"-- by John Pitts
