#13: The Flippening Begins? &

Proof of Passion

Tuesday, 13th April 2021

Following Bitcoin Cash on its rise to global reserve currency.

Bitcoin Cash (BCH) Stats Update

• USD $708.01 and 1 BTC buys ~88.6 BCH https://coinmarketcap.com/

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Transaction steady

https://cash.coin.dance/blocks/transactions

Sent in USD continues strong growth

https://bitinfocharts.com/comparison/sentinusd-btc-bch.html#1y

BTC dominance declining, 54%

https://coinmarketcap.com/charts/

Meme of the week, @be_cashy

https://twitter.com/be_cashy/status/1380240328603615234

Kim Dotcom sways sentiment

• Lots of posts saying “I had it all wrong, BCH > BTC” etc.
• https://www.reddit.com/r/btc/comments/mjz13i/an_apology_to_bch_and_this_sub/
• https://www.reddit.com/r/btc/comments/mkc58w/bch_change_of_heart/
• https://www.reddit.com/r/btc/comments/mkbfk4/i_want_to_apologize_to_the_bitcoin_cash_community/
• https://www.reddit.com/r/btc/comments/ml9omx/converting_btc_to_bch/
• https://www.reddit.com/r/btc/comments/ml2r5h/moved_90_of_my_btc_to_bch/

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https://twitter.com/DavidShares/status/1378705389995356163/photo/1

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Crypto reserve currency?

• BTC is most traded against fiat pairs
• BCH is becoming the most traded in the crypto <> crypto market
• Crypto <> crypto market rewards:
• Low fees
• Fast transactions
• High reliability
• Universal acceptance/adoption
• BCH clearly market leader across those categories

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https://twitter.com/TheBCHPodcast/status/1381242924743163904

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What makes a cryptocurrency unique?

• Why is Bitcoin Cash my favourite cryptocurrency?
• Why do I have so much faith that it is going to be the global reserve currency?
• There are more than 8 000 cryptocurrencies listed on coinmarketcap.com, how would an investor know which ones are:
• Resilient?
• Undervalued?
• Likely to last the test of time?
• What metrics do I personally look for in a coin?

Peacocks

• Biologists have explained peacock feather displays as a mating signal that relies on the principle of resource expenditure proving an excess of spare energy
• Key property: Impossible to fake

Proof of Work (PoW)

• Cryptocurrency mining for Proof of work is not “wasting” electricity, it’s investing resources in an impossible to fake way
• This allows for others to build trust that the claim is being made by someone invested in the system and therefore lying would be against their own interests
• Key property: Difficult/Impossible to fake, expensive & self detrimental to cheat

Proof of Stake (PoS)

• Investment in the network & incentive not to cheat is instead proven by “staking” coins aka locking up large chunks of the network’s native currency
• Ethereum is migrating towards this model
• Lots of other altcoins use it already - Tron, Tezos etc.
• No need to burn electricity / harm the environment
• Problems:
• Perpetual hodlers can stay rich forever
• In the event of a chain split/fork, there is no opportunity cost to vote on both chains

Proof of Social Media

• Joke in the community etc.
• The idea is that social media tweeting etc. is very low effort and low impact, so coins are criticised if their value proposition or decision making rests on trending hashtags or key influencers making posts (instead of PoW or PoS)
• At the time of the BTC / BCH fork this was very contentious, since it revolved so much around censorship of ideas

Proof of Passion (PoP)

• “People don’t notice that you’re there, people notice that you’re still there.”
• Under the labour theory of value, the only thing worth anything is really the value of other people’s time / skills / labour, and therefore what they will trade for it
• Two passionate individuals can form a trade network, accounting in whatever currency they both deem acceptable
• Long-tail of passionate individuals, the far end is disproportionately represented
• “Intolerant minorities” aka 1 in 10 English speakers makes a bilingual group speak English

Proof of Passion (PoP)

• Low proof of passion:
• Social media posts (“Proof of social media”)
• General disparagement and genuine once off negative “This won’t work”, “dead project” etc. commentary on or offline
• Flipstarters (personal opinion)
• Medium proof of passion:
• Investing money
• Obviously putting cash on the line is a pretty strong vote of confidence
• HOWEVER, cryptos are very liquid so it is very easy for investors to change their minds and swap their funds
• High proof of passion:
• Delivered code, real businesses or projects users can interact with
• Merchant adoption and merchant onboarding
• Any other kind of artwork, projects, advocacy etc.
• Trolling (surprisingly)
• Trolls only go where there is high activity and passionate users to discuss with.
• They’re also very passionate as they tend to regularly come back over and over again, so something that gets their interest among a sea of other similar communities is obviously notable in some way

Other examples of this phenomenon

• https://www.reddit.com/r/btc/comments/mj211a/the_past_few_months_bitcoin_cash_daily_onchain/gt8gvya/

• Businesses - Low/no marketing budget, rabid fan base
• Apple (Steve Jobs era)
• Tesla
• Sports
• Arsenal FC
• Religions
• Sagrada Familia
• Cryptocurrency often referenced to a kind of religion - not without good reason!
• Social movements
• Vietnam war protests

BCH & Proof of passion

• The #1 most hated coin online due to “scam Bitcoin” reputation by low knowledge commenters
• Survived a minority fork from BTC, and majority forks from BSV and BCH-A.
• The only coin (ever, to my knowledge) to survive both a minority and majority fork
• Has more physical retailers than any other coin
• Tends to be in the “big three” of BTC, ETH and BCH (next LTC) that most vendors will adopt first, to the exclusion of all other coins or in addition to their local favourites

Proof of passion examples 1 - Comic /u/0hWell0kay

https://www.reddit.com/r/btc/comments/mork0e/i_drew_another_comic_specifically_for_you_guys/

Proof of passion examples 2 - Art /u/crazyfool01

https://www.reddit.com/r/btc/comments/mnmw53/paint_crypto_paintings_sometimes_just_finished/

To improve BCH, be passionate!

• Passion creates value, momentum in the community, and new adopters

bitcoincash:qzulytrwhw902fgc9rnpxuj4tzwwnphwdccfphwwc6

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