Understand Bitcoin With Just Two Books

This post will discuss two books that provide an in-depth understanding of Bitcoin: “The Bitcoin Standard” by Saifedean Ammous and “The Blocksize War” by Jonathan Bier.

Book 1: “The Bitcoin Standard”

• “The Bitcoin Standard” provides an analysis of the economic principles behind Bitcoin and how it compares to traditional fiat currencies and other forms of money used in the past (such as gold).
• The author, Saifedean Ammous, is an Austrian economist and a long-time member of the Bitcoin community.
• The book explains how Bitcoin’s decentralized, permissionless, and trustless nature, combined with its predefined scarcity, gives it properties similar to gold.
• Ammous argues that sound money is necessary for a stable and prosperous society and that Bitcoin’s digital properties make it a superior form of sound money compared to gold.

“The Bitcoin Standard” is a book that provides an in-depth analysis of the economic principles behind Bitcoin and how it compares to traditional fiat currencies, as well as other forms of money we used in the past (most notably – gold). The author, Saifedean Ammous, is an Austrian economist who has been involved in the Bitcoin community for a long time, and his book is considered a must-read for anyone who wants to understand the economic implications of Bitcoin. The book provides a clear and easy-to-understand explanation of the history of money and how bitcoin will revolutionize the world. It explains how Bitcoin’s decentralized, permissionless and trustless nature, combined with its predefined scarcity, gives it properties similar to gold, which is (was) considered as the best kind of sound money. Ammous argues that sound money is a necessary condition for a stable and prosperous society, and that Bitcoin’s digital properties make it a superior form of sound money compared to gold – it is more transportable, divisible, verifiable and durable than gold.

Book 2: “The Blocksize War”

• The title of the book refers to a debate that took place within the Bitcoin community from 2015 to 2017 over the maximum size of blocks on the Bitcoin blockchain.
• The debate centered around the proposal known as the New York Agreement or SegWit2x, which aimed to increase the scalability of the Bitcoin network but would have led to centralization of the network.
• One of the key factors that led to the failure of the New York Agreement was the threat of a User Activated Soft Fork (UASF).
• As a result of the debate, BitcoinCash (BCH) was created, but it has failed to gain significant acceptance in the market.

The title of the book “The Blocksize war” refers to a debate that took place within the Bitcoin community from 2015 to 2017 over the maximum size of blocks on the Bitcoin blockchain. One of the most notable and dramatic final events during the blocksize war was the New York Agreement. The New York Agreement, also known as SegWit2x, was a proposal to first implement SegWit, and then double the block size. The proposal was supported by a number of companies and individuals in the Bitcoin industry, including BitPay, Blockchain, Circle (i.e. Coinbase), DCG and its parent companies (Genesis and Grayscale) and others.. The proposal aimed to increase the scalability of the Bitcoin network, however, it would have led to centralization of the network. Larger blocks would have made it more difficult for individuals to run a full node, which would have lead to a smaller number of entities controlling the majority of the network (i.e. BitPay, Blockchain, Circle (i.e. Coinbase), DCG and its parent companies and others.).

Conclusion

• Both “The Bitcoin Standard” and “The Blocksize War” are essential readings for anyone looking to deepen their understanding of the history and economics behind Bitcoin.
• “The Bitcoin Standard” explains the economic principles behind Bitcoin and how it compares to traditional fiat and other currencies, while “The Blocksize War” delves into the history of one of the most significant debates within the community, and how it shaped the technology as we know it today.
• Reading these books will give you a better appreciation of the nature of Bitcoin, its potential impact on the world and the core principles and ideas that guide its development.
• It is recommended to read “The Bitcoin Standard” first, and then “The Blocksize War”.