⚡ StackSats Saturdays | 2021 Week#9

⛏️ Bitcoin’s energy consumption a problem? ⚡ Speed up a Bitcoin transaction ❓ What is Bitcoin

🤔 How can I speed up a Bitcoin transaction?

To estimate the speed of Bitcoin transaction, we need to analyse the Bitcoin mempool. Visualise it herehere or here.

Before transactions are mined in a block, they are typically submitted to the network to be relayed and stored until block inclusion. The Mempool serves as the main gatekeeper for submitting transactions to the network for inclusion in a block. A Bitcoin miner uses the Mempool to select which transactions they wish to include into a block. Note that in decentralized cryptocurrencies there is no global transaction mempool; every node keeps its own set of unconfirmed transactions that it has seen.

Due to the bulk transactions and frequent congestions some of the BTC Transaction has not been confirmed yet. Transactions with higher sat/vB gets prioritized by miners.

Whenever there’s a high mempool size, it means more network traffic which result in longer average confirmation time and higher priority fees. Miners prefer high fee transactions, a new block usually only removes the top-most 1 MB worth of transactions from the queue.

There are 3 techniques to speed up bitcoin transactions:

  1. Child-pays-for-parent (CPFP)

  2. Replace By Fee (RBF)

  3. Using a transaction accelerator

🤔 What is Bitcoin?

Bitcoin with a capital “B” is typically associated with Bitcoin the protocol.

Bitcoin with a small “b” refers to the popular cryptocurrency. 1 bitcoin (BTC) = 100,000,000 satoshis.

The Bitcoin protocol is a timestamping service that signs up to 1MB of information every 10 minutes.

Recording monetary transactions is only one of its applications.

But because blockchains are expensive to use as record keeping ledgers, activities need to be of economic value.

Money is all our human productivity. Money as energy. Bitcoin is the most efficient way to transfer energy through time and space.

The Bitcoin network is the best battery to hold charge and not lose the energy. Unlike other forms of assets that experience inflation, be taxed etc.

The best way to understand Bitcoin is to read the whitepaper written by the founder Satoshi Nakamoto. Another resource that I recommend is The Internet of Money.

🤔 Is Bitcoin’s energy consumption a problem for the world?

Bitcoin is at a disadvantage right off the bat with this particular argument that it can't really be truly compared to to its competitors because they don't where their energy consumption on their sleeve, just like the Bitcoin network does.

Will Bitcoin mining boil the ocean? Something something bitcoin energy more than [insert country]! There’s 2 sides of the argument, let’s consider the side of bitcoin steelmanning:

  • A significant portion of bitcoin’s energy consumption is generated from renewable resources. If people came to understand the sources of energy that is being converted into electricity to mine, Bitcoin paints a bit of a different picture where you're not really creating net new energy to to mine Bitcoin. Bitcoin miners are not going out drilling a hole in the earth to pull out oil to mine bitcoin, because they are incentivized to drive their cost of power production down as low as possible. Bitcoin consumes energy that is otherwise wasted, if not, flared into the a sphere.

  • Bitcoin will spur innovation in the development of renewable energy technology & resources. Bitcoin mining operations are going to be the impetus for for new sort of hubs to be built, areas where stranded energy exists. A Bitcoin miner is going to be sort of placing a flag down on new territory and attracting people and communities to build cities and small towns around these mining operations.

  • Bitcoin consumes only the energy that the free market will bear at a free market rate. The nature of bitcoin energy demand will improve the efficiency of energy grids. Bitcoin consumes energy resources that would otherwise not be economic to develop.

Under the hood, proof-of-work mining converts kinetic energy (electricity) into a ledger block. By attaching energy to a block, one gives it ‘form’, allowing it to have real weight and consequences in the physical world.

👀 Highlights of the week:

  • Why Won’t Bitcoin Die? Because You Need It. (Bitcoin Magazine)

  • Bitcoin on Your Phone and on Your Mind. (Bitcoin Roller Coaster Guy)

  • The World's First Bitcoin ETF Now Holds 10,000 BTC. (Decrypt)

  • Bitcoin, The Ultimate Offshore Bank (Robert Breedlove)

  • Blockchain and crypto will challenge current finance, Nigeria VP says. (Cointelegraph)

  • The Bitcoinization of the Economy. (Bitcoin Tech Talk)

  • Microstrategy, Square Become Repeat Bitcoin Buyers. (CryptoBriefing)

  • Bitcoin: ‘Digital Gold’ or ‘Lunar Currency’? (Coinmonks)

  • A reminder for our nervous friends - this is what the dip looks like when zoomed out a month. (r/Bitcoin)

  • JPMorgan Strategists Suggests Investors Allocate 1% Into Bitcoin. (BTC Manager)

PS - Joined our community on Quora yet? A bunch of Bitcoin ₿elievers sharing, learning and looking out for each other.

Not financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your own research.