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https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
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In this video, I discuss Satoshi’s approach to Bitcoin network security, and how he was not averse to using more powerful hashing hardware to defend the network.
Trying to make your crypto ASIC-resistant is like mandating that you can only bring a knife to a gun fight. There’s nothing virtuous or commendable about it.
Satoshi understood that a hash arms race would unfold. He was correct, and now Bitcoin has passed the “ASIC event horizon” unlike any other crypto.
If Monero ever actually became valuable like Bitcoin, companies would develop ASICs for it.
There’s no way to stop people from building highly specialized hardware to mine your crypto. You can keep changing the hashing algorithm, but if it makes economic sense, large companies will develop ASICs to mine it.
This creates massive centralization and benefits large incumbents with billions of dollars to spend on R&D.
Bitcoin has fortunately passed the ASIC event horizon. Bitcoin ASICs are no longer made by a single company like Bitmain. Bitcoin ASICs are becoming commodified, and there’s no other crypto asset that has made this transition.
Not investment advice! Consult a financial advisor.
Bitcoin Controlled By Two Mining Pools?
SHA-256 hash calculator:
https://xorbin.com/tools/sha256-hash-calculator
Was Satoshi against GPUs?
Satoshi was against Graphic GPU which later became a specialized ASIC. Justification to grow the network and spread adoption equally. "Itβs nice how anyone with just a CPU can compete fairly equally right now,β Nakamoto said."
— Cogitx (@ModestDayTrader) December 14, 2022
Satoshi knew that a hash arms race was coming:
https://bitcointalk.org/index.php?topic=12.msg54#msg54
And he was prepared to use GPUs to defend the network:
Satoshi Invented GPU Mining to Defend the Network Says Early Dev
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#bitcoin
#bitcoinmining
#asics
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42 Comments
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the reality is that satoshi cared more about keeping the network true to its original goal rather than keeping it profitable for home miners, not to mention if you have been paying attention the largest miners are all going broke right now. its actually the home miners who are properly budgeted into mining that are in profit whether thats for bitcoin or any other proof of work currency. so even though bitcoin is not asic resistant it is very much greed resistant and also changing an algo to be asic resistant is very much unproven and theoretical science at this point, satoshi didnt force us to comply with any mining ideology other than sha256 eventually i imagine asics will be just as decentralized as gpus are now
Hello Matt.
Matt, question: another idiot one maybe butβ¦ why Monero doesnβt use ASICS? Not using the same kind of protocols/algorithm? So I donβt understand how it can be as secured as BTC?
How do these people expect to enforce 1 CPU 1 vote? it's not possible and it never was. Satoshi probably had dozens of machines running code.
Removing ASIC would be bad, it's one thing that gives Bitcoin value as there are tens of billions invested in the infrastructure. These people will fight to keep Bitcoin alive.
The sole reason Bitcoin mining is difficult is ASICs. That there's now three companies, after a decade plus of mining, who will sell anyone, with tens of millions of dollars to meet the minimum order size, a $10,000 device that's going to generate noise complaint and creates stop much heat you can only run it comfortably year round in Antarctica isn't great.
Some people only see problems where other people see solutions.
I was not familiar with Monero but one of the things I don't like about Bitcoin is the lack of privacy. Maybe the Bitcoin devs could incorporate some of their ideas. Other than banning ASIC mining.
Satoshi was a brilliant mind, his every word matters. The Satoshi quote was, it is nice everyone with a CPU can mine "right now." This made sense back then because it means anyone had access to mining. But network priorities change and evolve over time. Which is exactly what has happened. This is just another lame FUD attack that relies on narrative. Knowledge refutes FUD stories every time.
Barry and foundry π
I think the difference between Bitcoin and a ponzi is Hodling, in a pyramid or ponzi scheme, people 'trade up' with the intention of increasing profit. Understandable until you consider the massive ammount of small Bitcoin hodlers or holders. Ths serves no short term function of financial gain and in my opinion as such deliniates the line between ponzi vs Bitcoin.
One of the most valuable Bitcoin channels around.
Hey Matthew i have a question. my 24 seed is secured in protonmail. but i have the passphrase aka the 25th word. no soul knows thaat word except me. is it safe to do so. i never had issue with protonmail and i use 2fa and second password even. what do you think? i appreciate what you do for btc community
Thank you Matthew π
At this point, does it really matter what Satoshi said 10 years ago? Satoshi is a nice story about a leader who left the project, but the biggest reason it is a remarkable story is that he left the project, leaving it to everyone else to decide what bitcoin is and where it goes from here.
Just watched some vids by James Jani – ex. https://www.youtube.com/watch?v=brABoguf7uc
Might be interesting to disect some of his FUDs presented regarding BTC in his vids, while I must say the unveiling of Crypto-scams was spot on…
Seems the guy does not really understand money and Bitcoin properly to appreciate it ("Check you financial privilege" problem).
Thx for considering it, love your content.
Another point I would argue is that if you make your cryptocurrency ASIC resistant, you are essentially artificially and inadvertently drying up the supply of CPUs and GPUs. I would prefer for this hardware to be used for its intended purpose of general computation. Having specialized hardware like an ASIC, in my opinion, frees up and lowers the costs of general computation, which can then be used for more useful applications such as medical sciences and servers.
I would also make the same point in regards to Bitcoin's supposed lack of intrinsic value outside of its monetary function. For example, if we go back to using gold and silver as money, you are adding an extra monetary value on top of their industrial value. Do you think this would increase the cost of things like solar panels, which use silver? I would rather have silver be used in productive assets (helping with greenhouse gas emissions) than just sitting in a vault collecting dust.
If one person had a quantum computer, wouldn't it make sense to mine Bitcoin vs taking everyone else's? If they start stealing, the version of the protocol they have control "in regards to mining" could be phased out by the community
Don't really agree here. First of all RandomX (the POW algo of Monero) doesn't just make Asics economically unviable instead it's directly designed to make regular CPUs the Asic. If some company wants to develop a Asic for Monero they will have to compete with Intel and AMD to make better CPUs. Also it's seems extremely likely to me that governments will attack Bitcoin through the mining sector which is now dominated by regulated companies who will definitely comply to on chain censorship if the choice is either go out of business or censor the chain. We know that Bitcoin is superior in all aspects to Fiat therefore these attacks are inevitable and they will most likely suceed if users with cypherpunk ideals can't mine to defend the network since they were priced out due to economics of scale related to Asics.
ASICs cement the fact that entrepreneurs will search for stranded sources of power… And the cheapest they can get
Matt, how did you grow up in the Bay Area, live in Berkeley, and end up with so much common sense? π
CRYPTO is a scam including BTC… i give up on this trash… its all the 1% that run everything.. decentralization is not real … The big money controls everything.. look at blackrk partnering with the feds…. al they have to do is get liquidated and we all feel the consequences but they wont since they have a money printer… think for a sec they can buy all the btc and any any crypto… I say margin trading is all thats left..
What if the feds killed the supply of asics with either sanctions or violence?
I kind of figured that you had videos on deck ready to release days before you actually uploaded themβ¦ I think itβs cool that you made a good video responding to commentary made on the previous days content.
Thanks for the video. Once all or most of the coin is mined do you think that cheap personal miners will be spread all over the world to allow for the network to continue to run? At that point I wouldn't think that computational power will need to be as intense.
Monero is ASIC resistent because they do a periodic hard fork, but that requires centralization.
Mining hardware needs to have at least one additional purpose for Bitcoins network to become truly decentralized "infrastructure". If not peoples' phones and computers (because they aren't powerful enough), then that HeatBit you mentioned the other day. Or, pool heaters. Dedicated, single-purpose miners will only be ever be owned by the tiny tiny "crypto nerd" minority, who are able to be influenced as a group due to their common interest in the travails and complexities of mining. They'll probably coalesce at "miner conferences," to discuss the latest hardware, software, and industry. Until mining is drawn up into some other purpose used by Joe Blow, this small minority will be where mining is concentrated.
I've got an idea for a video. Ethereum and MEV sandwich trades that scam users for millions everytime they swap their tokens.
So Satoshi doesn't want people to take over the mining, but Satoshi has 1 million of the 21 million Bitcoin
Nobody analys market like u. U r genius. Thank you. Bitcoin always surprises everybody. So, I wonder what the surprise would be. Nobody ever predicts Bitcoin very well. There are just too many random guesses now. This is the best time of the year to invest in bitcoin and also trade as well. You need to invest in order to protect your hard-earned funds from anything eroding it. You need to invest now because your money is more valuable today than it will be in a year. I think we really need more experts in this field to give newbies a sense of how the community works. I lost 10k because of stupidity of trading without knowledge but Thomas Fuller came in and taught me how to make profitable trade since then I have been trading and waxing strong and now I can boast about 90k I made from day trading with his help and trade signal in a few weeks of trading. His trade call alert works on all timeframes using his setup.
1:40 Ethereum is trash, omg, I feel pitty about not being able to superlike this video, sir
This is special pleading. Monero's CPU algorithm took a number of tries and failures before landing on an algorithm that checks all the boxes. If Satoshi had access to the current algo (or even earlier iterations) at inception, of course he would have preferred it.
Hey Matt, hereβs a video idea.
https://youtu.be/d5AvBsxRMYk
Can talk about whatβs happening in Africa with Bitcoin, and those old Nokia phones being able to be used to send and receive Bitcoin without an internet connection.
If Satoshi was still around, he would also be ASIC resistant. To not think so is maxi cope.
What is your opinion on the BIP 52 draft of a hard fork for implementing the optical proof of work consensus? It's an interesting concept utilizing lasers for hash computation, but would a lower energy process and a new SHA-3 algorithm "HeavyHash", be as secure as the current ASICs hashing SHA-256? Or its all a pipe dream? Thank you Matt for your logical honest content in a sea of fraudsters.
At 2:00 you forgot about the FPGA stage after GPU
Using asics eliminates possibility of conventional cloud computing companies with mountains of server grade CPUs and GPUs suddenly getting a call to whip-round and vaporise XMR or any other "non-asic" network…
These companies XMR bros are 'fighting against', don't stockpile asics, but they most likely have much more computing power than entire XMR network combined.
just a food for thought as to "what happens wen XMR gets too big"
in my opinion, open source privacy-oriented sidechain to btc would look more secure
One thing thatI have never been able to understand is how people claim the value will go up to 1 million. For example, given the majority of coins have been mined, if five banks spent money now buying all coins in existence and everyone else in the main is holdingβ¦.there could never be enough supply to create volatility??
Hi,
Can you please make a video on Border Wallets, a tool to make your seed phrase a easy one to remember where you can essentially memorize 24 word and never rely on paper or metal plates?
Meanwhile…. GOD IS BLESSING AFRICA… no banks, no internet, no power et al!!!
https://youtu.be/d5AvBsxRMYk
Bitcoin in SA load shedding and all, education centre in Mosselbay
Wow
God is blessing Africa!
Bitcoin is like a samurai without katana against CBDCs that is backed up by governments and centrals backs with powerful armies with nukes and other powerful weapons.
Bitcoin and other cryptos have no power guns, only government has power guns.
That analogy doesn't work. The POW algo defines the battlefield, not the weapons. You can have algos where the best ASIC for the job is very close to what ppl have in their laptops. All the big guys can do is buy GPUs/CPUs/SSDs in bulk vs avg Joe's