[Saving Private BTC Project]
By
Concerned Crypto People
For Donations:
BTC Address: 1CYxJ7G1NwoqvWcaHA2fqWm2yLi5XZ3FdR
ETH Address: 0xfaeb255DacE5DE3E81F51a56D09Ffc6783577E6
Contact: info@londoncoin.io
Credits: BK Brian Kim, Dr. MyongSu Choe, Keith Rabin, Mikel Garces Etxebarria,
Table Of Contents
Introduction
Value of Bitcoin
Technology Issues
Business Model Issues
Community
Conclusion
Action Plan
Introduction
The Goal of “Saving Private BTC Project” is to make the Bitcoin price stable above $10,000.
Bitcoin is the cryptocurrency leader which did a remarkable job for the good of people in the world in many aspects such as wealth redistribution from rich old generation to poor young people which no government in history has done. Also, it is a very good anti-inflationary tool against the paper printing fiat currencies with unlimited quantities at the disposal by governments in which most of countries are in budget deficit. This will cause more fiat currencies to be printed with resulting inflation to make fiat currencies less valuable for all eventually.
And the US is leading the way for the collapse of the fiat currencies as we know it due to mounting debts by the public which is almost certainly unstoppable.
With this in mind, if one compares with gold all the fiat currencies in the world historically have not held their value over time. This made people lose the value of their currency to near zero as shown in the chart below:
Bitcoin can serve as an alternative and be favored as a medium of exchange compared with fiat currencies especially in times of global financial crisis where the minimum price of Bitcoin should be greater than the cost of mining which is estimated at $3,000.
But in order for the price of Bitcoin to be stable over $10,000 which is the goal of this project, Bitcoin needs to be developed further to meet the following objectives: 1. Bitcoin’s TPS should be faster than 56,000 for payment solution, 2. Bitcoin should “own” real assets such as gold to provide it with minimum intrinsic value, and 3. And easy to use solutions for everyday use need to be developed, especially for smartphone based use. The internet data traffic coming from the smartphone is about 80%, compared with 20% of these data come from PC. .
With current price of Bitcoin, pre-mining 3 million BTC to purchase gold for backing up BTC will make the only currency with gold standard. This is not the same as pegging with gold or any other assets. With 3% reserve as recommended by BICC, Bitcoin can enjoy $19,000 buying power with $583 per Bitcoin with gold standard status.
- Value of Bitcoin
Like most cryptocurrencies, Bitcoin does not have intrinsic value, because it is not tied to any real assets.This makes it vulnerable to price fluctuations that make Bitcoin unusable as a means of exchange since there is no entity or asset that guarantees its value. To remedy this, there are several coins that are pegged to real assets such as the dollar, gold, real estate, and others. But, the transaction speed of Bitcoin is around 7 TPS which was sufficient when it was developed but is now unusable in real world application. In comparison, the transaction speed of VISA is 56,000 at the peak.
But if the cryptocurrency is simply pegged to real assets, it will be hard for the cryptocurrency to expect significant valuation because the value will be about the same as the those of the real asset whereas Bitcoin “owning” real assets which the ownership of the asset belong to Bitcoin holders.
On the other hand, one way to consider the value of Bitcoin is as follows:
“Our total estimate for global value of mediums of exchange and stores of value thus comes to 72.1 trillion US dollars. If bitcoin were to achieve 15% of this valuation, its market capitalization in today's money would be 10.8 trillion US dollars. With all 21 million bitcoin in circulation, that would put the price of 1 bitcoin at $514,000.” - https://www.investopedia.com/ask/answers/100314/why-do-bitcoins-have-value.asp
This will be true if and only if Bitcoin can compete with legacy payment technologies such as VISA. i.e. TPS up to 56,000.
A more reasonable way to calculate the value of Bitcoin would include several factors. This includes Technology, Business Model, and most importantly community along with interests by the general public who are the potential new investors to Bitcoin. For examples:
Cryptocurrency technology is one of the factors to create the value of Bitcoin since it needs to be working in real world applications. If the technology behind Bitcoin is not safe, secure, and fast technologically for real world applications, its value will be minimized or worse it will be worthless. Therefore, technology is the most important factor since there are other technologies that can perform what Bitcoin does, and even work better such as Ethereum, IOTA, and Hedera Hashgraph, and LondonCoin etc. These are faster, more secure, safer, and more scalable. At the same time they do not enjoy the same recognition by a wide audience. Essentially, the technology for cryptocurrency is a game changer when proven and accepted by the community.
Therefore, to make the Bitcoin price to move upward there needs to be the a flexible technology structure that enables it to compete with other solutions such as VISA, Hedera Hashgraph, LondonCoin, and others. This will require a transaction speed that takes advantage of new advances - about 56,000 per second - if it is to be used as the global payment solution as it was designed at the first place.
Once new Bitcoin technology is proven to compete with others, then the technology itself is not the factor to be considered since performance will be about the same for all the coins. If this does not happen, Bitcoin will be short lived.
Business Model which generates profits for the cryptocurrency holders will be the important factors such as owning gold which in time will appreciate against fiat currencies with the expectations of future growth potential. Relying on the psychological hopes of financial gain for a purely speculative asset is like a lottery.
The Community that supports the development of the cryptocurrencies with full understanding of the technology, business model, and the future potential is the most important for the cryptocurrency to increase its value. With community size of over 30 million Bitcoin holders supporting the cause for the freedom bound globally, we can overcome any obstacles.
D. Other factor can be found via Google Trend which has a direct correlation with the
price of Bitcoin where the amount of people search for “Bitcoin” on Google is shown
Below which is another term for people interested in Bitcoin at that moment.
Bitcoin Price Google Trend “Bitcoin” search data
The value of any cryptocurrency can be estimated by;
A, when technology matters; 70% technology + 20% community+10% business model
B. when technology is equal; 50% business model + 50% community
- Technology Issues (Slow TPS and mining cost)
PoW (Proof Of Work) used by Bitcoin has inherent problems to be used as a fiat currency replacement since the transaction speed is too slow. Not only that, PoW requires mining which is too expensive.To remedy this, LondonCoin proposes two solutions;
Payment with PoW
Separating BTC transactions with more than $200 which will be backed with down payment by participants to use Bitcoin as the payment for daily activities.
This will be settled first with the pre-paid amount first in real time with Wallet to Wallet
transfer of funds, and will be filled when PoW based blocks are to be added later. -
Possibly with LondonCoin core(aBFT) ??? Hashgraph??? - Babble???
( ??DO YOU MEAN LESS THAN $200 - AS BELOW YOU SAY MORE GOES THROUGH POW - ALSO DOWNPAYMENT OF WHAT?? FIAT??)
For transactions above $200, it will go through the normal PoW transaction.
B. Payment with LondonCoin core(aBFT)??? Hedera Hashgraph???? Babble???
C. How to mine 3 million BTC cheaply???? Forking? Code change?
D. Inter Wallet Exchange Protocol; Qualified and certified Wallet to Wallet transfer of fund rather than address to address. C.f. Lightning Network,
https://coinpedia.org/news/new-foundation-for-inter-wallet-operability/
- Business Model Issues
Bitcoin is not issued by government or banks. It is good in the sense it is immune from inflation and possible failure of governments and banks, but on the other hand it does not have any guarantee of minimum intrinsic value other than mining costs to make a block if any.
There are many attempts to remedy this by pegging the cryptocurrencies with real assets such as dollar, gold, real estate, and others.
SInce there are about 3 million Bitcoins left to be mined, suppose these three million Bitcoin mining is undertaken by [Save Private BTC Project] Foundation - Proposed. And the proposed foundation would purchase gold to back up the 18 million Bitcoin. This will give minimum intrinsic value to Bitcoin which is about $583 at today’s price. Afterwards, there will be no more Bitcoins to be generated, and the miners will be compensated by transaction fees which will be set with a 10% profit margin.
Hence, transactions will flourish for Bitcoin, providing it with minimum intrinsic value and scarcity of the Bitcoin, which will provide excellent upshot potential.
- Community
Currently, there are over 30 million Bitcoin holders in the world, similar to the population of Malaysia.
With no inflation worries nor the deficit prone government budget to print more paper money along with threat of any kind of conflict whether it is by weapons or by trade, Bitcoin will provide a safer alternative to fiat currencies.
A more important factor is the number of stores accepting Bitcoin, which is increasing. be important since Bitcoin can become the Coin of Coins that can be used as the exchange platform for other coins if the speed and PoW problems were to be worked out.
The explosion of stores accepting Bitcoin will come from the smartphone based small business payment solutions such as NFC or BLE since each smartphone can be the payment terminal without going through the legacy payment clearing and settlement systems. Merchants can simply download the app, and start accepting cryptocurrencies with significantly lower fee than those of credit cards such as VISA.
Fingerprint authenticated H/W wallet, EMV compatible to be used as credit card as well.
- Conclusion
To make the BTC price rise and stay above $10,000, there are two items need to be remedied.
Mine 3,000,000 Bitcoins by the single organization, and 3 million mined Bitcoins will be used to purchase gold, and the gold will be used to give minimum intrinsic value to BTC by making the gold purchased stored forever by escrow to benefit BTC holders. Gold will be stored in several countries to minimize the risks of government policy changes. Operational expenses will be deducted from the gold holding and shall be audited by an independent firm on an ongoing basis. Eventually all the Bitcoins will be mined, and the miners will be compensated with transaction fees rather than mining fees. This proposal is making it bit earlier to benefit BTC holders.
Separate consensus core technology shall be used for the transactions smaller than $200 to make the transaction faster, i.e. near real time.,
- Action Plan
Organize the steering committee by Bitcoin institutional investors and expert in three tracks; Strategy, Technical, and Business - 1Q 2019
Setup agenda to transform Bitcoin - 2Q 2019
Generate the road map for agenda - 3Q 2019
Action 4Q 2019 and on