Bitcoin Network Structure and Operation

Public-Key Cryptography

Bitcoin Addresses

As of 2022, Bitcoin uses the RIPEMD160 has function, so there are 2^160 possible Bitcoin addresses, which is a 49-digit integer when written in decimal form.1)

Proof of Work (PoW) Mining

Bitcoin mining is a lottery process that costs energy to operate computers to perform calculations.2)

Bitcoin Monetary Theory

Bitcoin's capped supply solves a variety of social problems associated with the Cantillon Effect.3)

Gresham's Law (and Thier's Law)

Gresham’s Law (Aristophanes): Bad money drives out good (when two currencies are required by law to be accepted in parity).

Gresham's law is often stated as, “bad money drives out good”. This aphorism does not fully explain itself, however, so we demonstrate with an example:

When a currency exists in a market place, coined in a metal, and a sovereign ruler decides to save money on new coinage by producing a coin decreed by the authority to be equivalent, but made with an inferior metal (a less useful, thus cheaper to purchase metal), then people in the marketplace spend the “bad (inferior) money” first, while hoarding/saving the “good (superior) money” any time they have the option. Thus, Lord Gresham explained to Queen Elizabeth how coins seemed to have vanished from the marketplace. In the end, we should expect the saved (low velocity) coins to accrue in value over time relative to the spent (high velocity) coins regardless of the decree of values. Such pegs eventually break, as did the bimetallism policy of the U.S.

The notion of Gresham's law can be used to argue in support of the ideas of Bitcoin Maximalism” in the short run and “hyperbitcoinization” due to Bitcoin's non-inflationary protocol. Thier's law comes into play when the bad money's velocity reaches such a high rate that it undergoes hyperinflation relative to the good money to the point that nobody will even take it as a medium of exchange because they cannot get rid of it fast enough for any profit from the exchange not to tend negative. Thus the bad money simply dies off as a currency.

Satoshi Nakamoto

Theories of Identity

Paul Le Roux

Few people believe that Paul Le Roux is Satoshi Nakamoto, but published an article with some circumstantial evidence connecting him to Satoshi.4)

Psyop Theories

  • What is the Bitcoin Psyop? -Questions for (James) Corbett5)

Bitcoin Statistics

Price Tools

  • The Bitcoin Rainbow Chart at puts current price and price history into perspective using metrics that have become standard in the Bitcoin community.

Growing Adoption

As of March 31, 2022, reports that there are 106 million Bitcoin owners, 200 million Bitcoin wallets, 53 million Bitcoin traders, and 400,000 daily Bitcoin users.6)

National Adoption

El Salvador

In 2021, El Salvador became the first nation to make Bitcoin legal tender, and gave some Bitcoin to every El Salvadoran. Not every aspect of that experiment has gone smoothly.7)

COVID-19 Pandemic

During the COVID-19 pandemic, numerous people have been de-banked and are looking for banking and payment solutions.

  • Tallycoin is a fundraising site that takes donations in Bitcoin and distributes them to causes.

Transacting in Bitcoin

Transaction (tx) Fees