Craig Wright on Bitcoin and SegWit

Craig Wright unexpectedly showed up as guest speaker at the Future of Bitcoin Conference on Bitcoin 2017. He talked about SegWit – the answer is NO, nodes, connectivity, volumes and fees, economic behaviour; almost every aspect of bitcoin. It is a must for everyone interested in the (political) economy of the Bitcoin network. After the presentation I certainly take a closer look at the comments in the original code he’s referring to. After the 55 minute presentation an interesting Q&A followed. Besides the usual “Are you Nakamoto?” questions, a far more interesting question followed.

Q:  What do you think is going to happen to governments when Bitcoin does take over [the role of national fiat currencies]?

Craig Wright: They’re going to have to be honest. I don’t know if they can actually do that, but they’re going to have to learn because they can’t manipulate the money anymore. […] So either, they start actually not lying – if they start being honest about things and start treating all their policies economically, or they die. And by economically I mean: Every time you make some bullshit political statements saying “we’re going to do X, Y and Z” it comes at a cost. Everything is economic. Every life you save is a life that you sacrifice. When you take money away to give to healthcare there are other uses. Money is a scarce good. Scarce economic goods have alternative uses. You always have things at the margin and you always have to trade one for the other. There is never everything, it is always a choice and they have to start being honest in that choice.

To those who wants a closer read first about the following presentation. Wright published a paper about miners behaviour recently: Proof of Work as it Relates To The Theory of The Firm. Miners, micro economic behavior, Rational Choice, Social Choice, Transaction Costs, Coase, Arrow, Adam Smith, Schumpeter. Bitcoin is more than coding.

Credits for Gavin 9001  showing this presentation.

Bitcoin = code + market

A class example where political science and IT meet. Listen to Dr. Peter Rizun’s 20 minute presentaties about the effects of SegWit in Bitcoin. Bitcoin is not just programming code. The network is used by rational actors -who sometimes behave irrational though, but in general try to maximize their profits. The rules of the game, in this case the incentives for miners are new coins after finding a block and transaction fees. Take a look at Satoshi’s white paper while listening, Rizun refers to section two. These incentives are decisive in making the miner’s choice how and what coin to mine.