Bitcoin CAN be Double Spent… HOW?! | Hashpower Academy

Video Transcript:

and the topic of today’s video is Bitcoin can be double spent but first let me introduce myself hello there my name is Jake and I am the lead educator here at the hash power Academy where we learn about Bitcoin and anything to do with Bitcoin from a fundamentals first perspective that is to say that we go through through the energy side of Bitcoin then the compute and Bitcoin mining side and learn about blockchain and Bitcoin as money in a financial context talk last and this allows you to go through the different steps of how bitcoin’s produced mathematically and based in physics those are the fundamentals and all the other Financial fund stuff works on top with clear understanding as to how it works why it works and everything in between and the question of today’s video can Bitcoin be double spent but let’s just go through the layers and we’ll get some broader perspective on this question we produce energy we transfer it over time electricity we consume electricity in Bitcoin mining hardware and that Hardware produces compute power which adds Bitcoin blocks to the chain so Bitcoin miners are earning a certain amount of Bitcoin based on how much compute power they’re producing over time their energy bill electrical bill converted into compute converted into Bitcoin it’s three steps energy compute and finance and on the Bitcoin blockchain side of things this is where people store the data for their transactions when when you pay a fee to send Bitcoin you are essentially paying for the storage space of your transaction information because in a central banking system all of the information the source of Truth is one single place and one single node in that sense but in a decentralized system everyone has multiple copies of the same transaction file think of it as a giant Excel spreadsheet where only the people that have access to edit are the minors everyone that has the ACC has the the copy of the file a readon format is a node and those that own the line items in the Excel spreadsheet those are the Bitcoin holders with their wallets and essentially the transaction Integrity of Bitcoin is secured on the digital side that is the understanding of who owns the units what wallets they are in all in a public verifiable format but the double spend operates from both dimensions of Bitcoin the physical world below this line of electricity production electricity and Hardware the physical aspects the physical components and then the digital side is compute power and the blockchain and Bitcoin the native digital money and what what happens here is the double spend interestingly enough is not anywhere on the digital side yes electricity produces compute produces Bitcoin that’s one single branch of economic energy flow from the physical side to the digital side but there is another heat heat is well as the rule goes energy is neither created nor destroyed only transferred so yes those electrons racing around little circuits to compute produce compute power to find the next block in the chain to earn Bitcoin that’s one branch of earning income from your energy costs but the second one is all of that heat has to be removed everyone’s experience putting their computer on the bed and it overheats because it needs to remove the heat effectively if the heat is not removed it warms up and becomes inefficient or breaks and that is the same with the entire Bitcoin mining industry the energy is neither created nor destroyed only transferred through the computer to perform computations but you still have to remove that heat but it’s considered a waste waste heat you have to remove it but is that all no there is an entire branch of Bitcoin using the heat as its commodity such as heating greenh houses heating pools heating schools district heating which is one single module of computers with pipes running out to say different homes or underneath the pavement next to roads so that the roads never freeze essentially using heat as a commodity in of itself which which means that you have one energy input but two revenue streams one on the physical world and one in the digital world so the double spend is not some risk to transaction Integrity that is always maintained as your data goes into a block and more blocks are added that data cannot change because it changes all blocks after that and so it’s like platting your hair you can’t plat the hair and untie this bit without unwinding the whole lot in a different sort of analogy and on the heat side of things heat as a commodity is incredibly valuable because over 50% of our needs globally and our consumption of energy globally 50% of that is just for heat and there is an interesting metric to say that if 1% of global heating demand was using hash rate heating where the energy cost is some of it’s being subsidized through the production of Bitcoin in the process why run energy through an electric heater to generate heat when you could run it through a computer that consumes the same amount of power but produces you money in the process imagine that every time you turn the heating on your heating system is paying you now wouldn’t that be a turn of events and so this entire branch is worth your understanding and worth your knowledge to delve into to learn about because it’s going to become an an entire sector of Bitcoin in of itself and as I said if 1% of global heating used Bitcoin mining it would quadruple the size of the Bitcoin Network and if you’ve seen other videos of mine if the network was to quadruple in size the Bitcoin price could reach to over a million dollar because the production cost would rise to about $250,000 per Bitcoin and price typically trades at four times multiplier at the peak of the bull market against production so if production was 250k Bitcoin price could be shooting up to a million dollar now wouldn’t we all like that because as you produce more compute and the price goes up miners capture that premium of price and cycle it back into more um production I hope this was an interesting sort of video an interesting twist that yes Bitcoin can be double spent but it’s spent once in the digital world and twice in the physical world so it’s if you run a business that you have a need for heat let’s say you have a a la Dre you have a big tank of water sitting behind all of these washing machines and customers paying you to use that hot water and to wash their clothes you could have that tank of hot water heated by Bitcoin miners so you’re generating one income stream on the digital side from that energy cost and the second income stream of having readily available warm water for your business I also believe that these sorts of heating systems will be connected to electric car charging stations where they have a business of selling energy and if there’s no cars currently charging you could be consuming that energy into Bitcoin mining machines the heat from the machines into laundry systems into a building into a coffee shop into a sauna there’s all these Endless Possibilities when you expand your mind in the concepts of how many different applications we need for heat in this world thank you for listening I hope you hope you enjoyed this video and I will see you in the next one goodbye