WHAT does Bitcoin DO ?!?!?!?! | Hashpower Academy

Video Transcript:

hello there and welcome to the Hashpower Academy my name is Jake i’m the lead educator here at the academy and this video today is to just delve into some insightful perspectives as to what Bitcoin does as an entire network and it’s all under 21 million units that’s the crazy part so what does Bitcoin do well we teach from a fundamentals first perspective which is to say we delve into everything to do with the energy sector first then the microchips and Bitcoin mining aspect of things that produces the compute power which produces Bitcoin blocks which produces Bitcoin the data money on the blockchain and so you’ve got all of these different components and they’re always changing expanding and being developed into all different weird and wonderful things in their own right there’s different companies in all these different sectors there’s some that have vertically integrated through the whole stack that’s the best place to be and so let’s run through the layers well producing energy well that just delves us into the the concept of planetary infrastructure energy production is the most important aspect of the prosperity of society if we didn’t have energy what you’d be heating your house with fire we’d be back to the dark ages we have to produce more energy and we’ve continually produced more energy and the GDP of countries directly correlates to the energy use of a nation so if you try and reduce the amount of energy of a country you literally just make yourself poor you put on the brakes of human prosperity and what does Bitcoin do it monetizes this industry the electricity now has an economic value on the internet through Bitcoin mining and so it creates a circular economy they can spend money producing energy and that energy converts into money or sold to the local grid and you’ve got that circular economy to continually reinvest and scale this planetary critical infrastructure and electricity in of itself is the most needed commodity of our society it doesn’t matter what job you do or how you do it everything is based on electricity now and the electrification of the world is in full force so everything wants and needs energy to be produced transferred transportation logistics your car and everything in between microchip monetization engine so all of these computers that’s consuming that electricity that’s being produced by the energy sector these computers well they need to be purchased and so there are continual monetization and an incentive structure for R&D in better more dense uh faster quicker chips whether it’s your phone and the older generations as the best analogy and the latest phone comes out and the latest phone comes out why it’s because you continually keep buying phones and so there is an incentive to continually produce better phones bitcoin mining is a demand to acquire microchips that can exchange electrical cost into digital economic value we can call Bitcoin so the demand for compute power and to to gain more compute power is always there and what is all this compute power doing well the digital aspect of Bitcoin mining represents the world’s most powerful computing network you could combine several supercomputers and they still wouldn’t even break a sweat in comparison well the Bitcoin network won’t break a sweat in comparison to these computers they won’t even have a chance to breach into the network and what do I mean by breach into the network well the Bitcoin blockchain the single most unique important component of the blockchain is that it requires energy to produce it you can have all these other blockchains that do other things and are highly efficient but they do not have a cost of energy to produce which means the units have no intrinsic connection to electricity think of Ethereum they disconnected from their energy cost to produce Ethereum and now they live in this simulated world of value that doesn’t really address underlying fundamentals ethereum could have monetized the GPU industry but they cut them off which is not good and this place this blockchain that has a cost to produce it decentralizes the issuance power of money when the issuance power is centralized like we’re hearing the in the USA where there is just a random group of computers that can just send payments issuing money into circulation without zero accountability how do you feel as a person with your time and energy contracted in an employment contract against those quantity of database units that your time and energy is being stolen just by other people spending your energy it’s not fair and so having a place of absolute digital scarcity a source of truth freedom of speech preserved and all of that energy required to produce it being directly priced against a fixed supply 21 million units so everything everything we’ve just discussed expanding innovating building prosperity to society against 21 million units on this database i digress