Bitcoin and Grin : A Rise from the Ashes
In this article; I will try to explain;
· the story of the Phoenix bird, which has an important place in mythology and
· the message given by the Times magazine in 1988, which predicted a common currency in the future, and the connection of all these with Bitcoin and Grin.
Note: This article does not qualify as an investment advice and its conclusions do not claim accuracy.
The Phoenix’s Story
Legend has it that the Phoenix lives in the branches of the tree of knowledge and knows everything imaginable. It is also immortal, hence, having eternal life. When it feels that it is going to die, it wraps its nest with dry branches and waits for the sun to come out in all its glory and burn it. In the nest that turns into a fireball, the Phoenix turns into ashes and is reborn from its ashes.
One day, a great trouble befalls all the birds. So, they gathered together and decided to go to the Phoenix in search of a solution because according to them, the Phoenix is wise, knows everything and is a friend of all birds. After the birds decide, they set out for the top of Mount Kaf, where the Phoenix lives. There are 7 bottomless valleys to pass ahead of them.
1. Valley of will
When the birds set off, the first valley they enter is the Valley of will. This place is like paradise for birds. They think they can have everything they want here, and many birds, fascinated by this place, stay in this valley and reduce the flock.
2. Valley of love
The next stop after the valley of will is the valley of love. When they enter the valley, a mist covers the eyes of all birds. They mistook the shapeless stones, and pieces of wood they saw as pheasants or swans, and fall in love. They’re all blind now. They get caught, dragged, and then disappear.
3. Valley of ignorance
After many birds were left drowning in love in the valley of love, the next stop for the remaining birds is the valley of ignorance. Everything looks good in this valley for birds. They even forget the phoenix. It doesn’t matter where they go. They see interesting objects, but do not question what they are. If they do not question, they start not thinking and if they think about it, they forget. As they forget, their burden gets lighter and they start to smile aimlessly.
4. Valley of disbelief
After the valley of ignorance, they come to the valley of disbelief. When they enter the valley, their thoughts suddenly change. They believe that finding the phoenix will not solve their problems. Some of them say that we will die, others say that the bird’s wing has been cut off and is already dead. This disbelief causes many of the birds to return from this valley.
5. Valley of solitude
After the valley of disbelief, more than half of the birds are no longer on their way to meet the Phoenix. The next stop for the rest is the Valley of Solitude. This place terrifies all the birds that enter into it. They think they are alone and when they are hungry they try to hunt their own. When they hunt alone, they become prey. Each chooses to act on his own, and many perish, forgetting that all birds fly for the same purpose.
6. Valley of gossip
The remnant of the birds that could not hunt in the valley of solitude and were therefore hungry and weak enter the valley of gossip tiredly. When the birds enter the valley, they begin to hear whispers from every corner. The bird at the rear end says that when the Phoenix is reborn, its feathers are burned. A bird in front hears this and believes that the burned feathers are not growing again. A bird in the front says that the phoenix is hidden because its burning feathers do not come out. A bird in the front hears this and says that because the Phoenix is in a bad mood, he hurt those who see him hiding. When a bird in the front hears this, he says that the Phoenix bird, who hurt everyone, can’t stand it anymore and kills himself. The front bird says that there is no need to go and that the Phoenix is in the soil. Thus, many birds decide to return, believing the rumors.
7. Valley of me
After a total of 6 valleys, the 7th and last stop of the remaining birds is the me valley. As soon as you enter this valley, a great turmoil begins. Some begin to criticize the wing of the other bird, some claim to know everything, some claim that they went the wrong way. A voice begins to emerge from every head. All of them want to be the leader and they collide with each other to get to the front and they lose a lot in this valley.
Finally, these 7 valleys are crossed with great difficulty and some of the birds reach Mount Kaf. However, out of millions of birds, only 30 birds remain. These 30 birds all start looking for the Phoenix. Hours pass and they do not see a single movement on the big mountain. When they are about to run out, they find a bird’s nest with 30 written on it, but there is no one in it. They believe that this nest is the home of the Phoenix, and they decide to wait. Hours pass, days pass, weeks pass, but no one comes back home…
Just as the birds, staring at the number 30 in front of them, are about to lose their hopes, a thought suddenly lit up their minds. Only 30 of the millions of birds that have passed through the difficult valleys have reached the Phoenix’s nest, and they see only number 30 instead of a bird. At that moment, they realize that the meaning of Phoenix actually is “30”. So all the remaining birds are actually Phoenixes. Savior, wise, perfect, these birds are all those who crossed these seven valleys.
Therefore; those who dominates his will, does not blindly adhere, thinks, develops himself, believes in himself that he will succeed, knows that should act together, does not prefer to be alone, does not gossip, and most importantly, trains his ego are Phoenix bird.
The Economist 1988
As the year turned 1988, a striking article was published on The Economist magazine. The article predicted that 30 years from the time it was written, the world would naturally rally around a common currency. It was stated that the injustice caused by the value differences in the exchange rates of the countries in the current economic order had devastating effects, and in this case, it seriously affected the trade and people. It was written that only if the world switched to a common currency would such destructive effects be eliminated and economic justice could be achieved.
The cover of the magazine in which the article was published was as remarkable as the content of the article. Because, on the cover of the magazine, there was a Phoenix bird with burning above government coins. It was as if this image was made to show us a new phoenix, a new financial system, which will be reborn by burning in the fire of government money, just like the story of the Phoenix rising from its ashes.
Bitcoin
As stated above, 20 years after the article which made such an important conclusion for the economy and completed it with such a beautiful cover image, in 2008, a secret software developer named Satoshi Nakamoto emerged and announced that he was working on a new currency — Bitcoin. Bitcoin was revealing a structure that had no precedent until then, promising to work on its own, universal, unstoppable, unchangeable, and completely opposite to the current economic system. Considering the process of revealing such a well-founded project by such a secret developer, it seemed to show us someone who was disturbed by the above-mentioned article and its results because without the lack of fairness and decentralization in the past economic system, both the article in The Economist magazine and Satoshi Nakamoto and the Bitcoin he created would not have existed in our lives.
Satoshi Nakamoto has also never hidden his reaction to the current economic system. He tried to show us what Bitcoin actually came from, sometimes with secret messages and sometimes with his words.
· Satoshi’s first and clearest reaction to the economic system was seen in his first post on the p2p foundation site, where he introduced Bitcoin. In his words -
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.”
· April 5, 1975
Although Satoshi’s reaction to the economy system was very clear with the message he wrote on p2p, it was not limited to this. At the same time, he was trying to give a big message with the date of birth he entered on the site.
The date of April 5, 1933 is the date when the USA began to force the American citizens to sell their gold to the state at low exchange rates, with a law. This law remained in force until 1975. Satoshi Nakamoto’s chosen date of birth on the p2p foundation site includes the start date of this law, April 5, and the end date, 1975. In this case, it was Satoshi’s reaction in another way.
· January 3, 2009 — The Times
Another reaction of Satoshi is hidden in Bitcoin’s 0th, that is, genesis block. On January 3, 2009, a secret message was placed in this block by Satoshi Nakamoto, unlike other blocks.
In the secret message inside the block, The Times Newspaper’s headline was “Chancellor on the brink of second bailout for banks”. In the content of the news mentioned, it was written that the crisis in the current economic system, which was created by baseless loans, would be tried to be eliminated by printing billions of money. As if showing his discomfort with this system, Satoshi placed this information in Bitcoin’s seed block and showed his reaction again.
· 1st Bitcoin Block — Connection with The Economist
Satoshi’s last reaction, though in the form of a theory, is worth telling. On January 3, 2009, Satoshi did not operate the Bitcoin network for 6 days after Genesis created the block. Then on January 9, 2009, he started the network again and created the 1st block.
The article published in The Economist magazine, which states that the world may gather around a common currency within the next 30 years, was published on January 9, 1988. At this point, we can say that Satoshi may have chosen the date of January 9, with a reference to this article. This is because, as of the date of writing, we can say that this article can encourage a person who is uncomfortable with the current economic system to create a common currency that the entire world will want to use. Also when we combine this with the story of the Phoenix bird…
Grin
Exactly 10 years and 6 days after Bitcoin main net, a new project named Grin published main net, which feels us the birth ambiance of Bitcoin. Although Grin was similar to Bitcoin with its origins, it was also very different from Bitcoin. The difference was that Grin emerged in response not only to the current economic system, but also to a number of features of Bitcoin and the existing cryptocurrency ecosystem. This is because, Bitcoin was launched as a crypto currency that defends privacy and anonymity. However, with the fully open blockchain, it was quite ineffective at ensuring privacy. Although, Bitcoin pointed out the injustice of the old economic system, it missed the point which is the fact that its limited supply and ever-decreasing emissions policy could create a different kind of injustice. At the same time, it involved a great risk that, with monetary emissions constantly decreasing, monetary inflation would reach zero and eventually it would not be clear whether the network would work with transaction commissions only. Also, but instead of finding the solution to these issues, many of the cryptocurrencies that emerged after Bitcoin followed in its footsteps. As a result, in response to all this, Grin coin emerged.
Grin had 2 main architects. The first of these was the undercover person named Tom Elvis Jedusor, who told the foundations of Grin’s format Mimblewimble. The other was secret developer Ignotus Peverell, who first implemented the Mimblewimble protocol and named the project Grin. Let’s take a closer look at the birth fundamentals of Mimblewimble and Grin and their reaction to the current cryptocurrency ecosystem.
Mimblewimble and Tom Elvis Jedusor
Tom Elvis Jedusor, the secret creator of the Mimblewimble protocol, in his first sentences about the protocol, said that every transaction on the Bitcoin blockchain depends on the previous transaction. Meaning, anyone who wants to join the network must download and verify everything completely from the beginning. He stated that doing this was not only laborious but long-term and space-consuming.
In addition, he stated that since the transaction graph on the network is completely open, network transactions can be tracked very easily, making privacy completely dangerous.
Therefore, in light of these shortcomings in Bitcoin, Tom Elvis Jedusor, who explained that he designed the Mimblewimble protocol and how it works, also said the average result to be obtained with this protocol. According to his calculation, a cryptocurrency that would work with Mimblewimble would eliminate a lot of information and store about 2.5 times less data than Bitcoin. It would also have both confidential transaction and obscured transfer graph.
The format, told by Tom Elvis Jedusor, was an important step for the privacy of Bitcoin and cryptocurrencies, as well as a first for its ability to provide privacy with such low data. Although, other cryptocurrencies that could provide privacy emerged after Bitcoin, these cryptocurrencies needed additional layers for privacy. It represented the blockchain network carrying more and more data in each additional layer. For example, Monero, one of the most famous secret cryptocurrencies, tries to maintain privacy by adding decoy inputs to real input set to ensure privacy. However, each added decoy to real input set, increases the weight of the network at the same rate, thus increasing the privacy while causing the network to become heavier. That’s why Mimblewimble was completely different from the others in that it did not compromise on lightness while maintaining privacy.
Grin and Ignotus Peverell
Tom Elvis Jedusor disappeared after presenting the idea for Mimblewimble and has never reappeared since then. Two months after Tom, another secret developer, Ignotus Peverell, emerged and announced that he had started making the Grin coin, the first real implementation of Mimblewimble. Now Ignotus had taken over Tom’s flag.
After Ignotus started implementing Mimblewimble in Grin, many volunteer developers as well as followers started to enter the network of the project because Mimblewimble and Grin were quite interesting with their unique features. However, Ignotus never chose to use this interest for his own benefit. He fully embraced open source code and worked with a team of volunteer developers, accepting donations only. In this way, he created Grin with a huge NO LIST, unlike thousands of cryptocurrencies.
What Ignotus Peverell did was something unique among cryptocurrencies that emerged after Bitcoin. This is because, recently, many crypto money projects, no matter how good they are, cannot reach a point other than the final target of the project “TO THE MOON”. For this reason, the developers and investors of the project are trying to do everything they can. For example, when a valuable new project emerges, it is often sold through an ICO, securing the developers. During the post-ICO period, attempts are constantly being made to create additional benefits for developers and early investors, with attempts to scarce the supply of cryptocurrencies. It’s sad but true, the majority of cryptocurrencies today emerged with this or a similar mission. As a result, the majority of cryptocurrencies form technocrats and central powers by going on a similar mission with state currencies, instead of creating fairness and decentralization compared to state currencies.
Ignotus Peverell reminded the basic mission of crypto money that was forgotten after Bitcoin because;
. Ethereum, which was sold with ICO and whose emission is constantly scarce,
. Dogecoin, which was created as a joke and is Elon Musk’s shill tool,
. unclear what is it Shiba Inu,
. BNB, which is forced to be kept even if not used and whose supply is constantly scarce,
when you go to the essence will you be able to see a completely decentralized crypto money mission?
So far, we have tried to show you the main reason why Bitcoin and Grin were created. Bitcoin and Grin were not projects with simple foundations. Bitcoin was a Phoenix that wanted to burn the current economic system and be reborn from the ashes of that burning fire. Grin, on the other hand, was a new Phoenix bird who brough back to focus the forgotten mission after Bitcoin and wants to burn the missing parts of existing cryptocurrencies with Bitcoin and wants to be reborn from the ashes in that burning fire.
It is very important for us to understand these, because in order to understand what something is, it is necessary to first understand what it consists of.
Bitcoin and Grin Justice Basis
It is obvious that each feature Ignotus added to Grin is different from many cryptocurrencies that emerged after Bitcoin. However, the situation is not limited to this. Grin also has a completely different feature from Bitcoin. This feature is the monetary policies which have quite different missions from each other.
Bitcoin’s Justice Basis
Unlike government currencies, Satoshi Nakamoto created Bitcoin with a limited supply monetary policy. With the total supply limited at 21 million btc, the prize distributed is halved every 4 years. Although this policy seems to present a more fair structure compared to state currencies at first glance, we can say that the situation is different from other points.
1. Injecting Half of the Supply in the First 4 Years
Above, we see the supply model of Bitcoin. According to this supply model, Bitcoin injected 50% of its total supply (10,733,825 BTC) into the market in the first 4 years, that is, between 2009 and 2012. Here, the most important point we can draw attention to is the supply-popularity relationship.
Any meta, no matter how successful it was when it first came out, is just darkness to most of the World. This is because it is impossible to announce and fully explain that meta to the whole world at once. As a result, when Bitcoin first came out, no matter how valuable it was at the time, it was just dark for much of the Earth. But while having such darkness, it was making the fastest distribution of Bitcoin supply. As time passed, the popularity of Bitcoin began to increase proportionally, but this time the distributed supply began to decline inversely. This made a big difference between those who first heard of Bitcoin and those who heard later, and it was a complete contradiction in terms of supply and popularity.
This contrast was noticed by some in the early days of Bitcoin, and first public question was from Sepp Hasslberger on the p2p forum site to Satoshi.
In his first question, Sepp asked about the certainty of Bitcoin’s limited supply, emphasizing the importance of the supply being able to change in proportion to its usage rate.
In response to Sepp, Satoshi Nakamoto stated that there cannot be a reliable system that can adjust whether the supply decreases or increases according to the rate of use, and said that Bitcoin is more like a precious metal with its monetary policy.
Sepp countered this response, saying that early adopters of Bitcoin would be more advantageous. In addition, he stated that if this system is to be used as a payment instrument, it may be vulnerable to high volatility in price and emphasized the importance of price stability.
Satoshi’s last reply to Sepp was not of the nature to argue the contrary, and he replied as follows. “If Bitcoin can’t make enough and small enough coins so that people can trade at the value they want, then it will be replaced by something that can.”
As a result of all this talk about Bitcoin’s monetary policy, we see that what Sepp predicted in the early days of Bitcoin came true one after the other because Bitcoin;
. has been an incredibly advantageous asset for early adopters.
. in terms of price volatility has always been very high compared to many other commodities.
. rather than being a means of payment, was often kept in a wallet.
2. Electronic Cash? Or Precious Metal?
Satoshi Nakamoto introduced Bitcoin as a Peer-to-Peer Electronic Cash system in his white paper where he explained Bitcoin.
However, on the p2p site, he said that Bitcoin is more like a precious metal.
In fact, Bitcoin, with its limited supply and aggressively declining emissions, may not be likened to both cash and precious metals, which Satoshi points out in two ways. The limited supply and the ever-decreasing supply increase is a feature that is not found in any cash fiat money. When we evaluate it as precious metal, we know that no precious metal on earth half of the total supply was not mined in the first 4 years. It is also absent in any metal where 90% of its total supply has been mined in 13 years. Also, although precious metals are viewed as limited assets, no precious metal has yet reached the end of its supply.
Therefore, it is not possible to say exactly what Bitcoin actually is. However, it is also a fact that Satoshi calling it cash at first and then precious metal shows that he is actually confused about what Bitcoin is.
3. Can Limited Supply Be Sustainable Money or Investment Tool?
To question whether Bitcoin is sustainable, we can look at the properties of government moneys and precious metals, which are two real examples of sustainability to date.
The most important monetary policy feature of state currencies is that the supply is never limited because otherwise, business could come to a standstill when people or institutions do not move the money they have. You can think of it this way, today, the x richest persons/institutions in the world may have the title of being the richest until the last day of humanity, unless the states create new supply. Since the majority of the money will be in these x persons/institutions, trade in the world may come to a level that cannot function properly after a period of time. Therefore, we can say that the limitedness of goverment money has the potential to contain significant dangers in terms of trade, justice, functioning and sustainability, and perhaps because of this, we can say that no state has preferred a limited monetary policy until now.
With the example given, when we look at the dollar supply increase graph printed by the FED in real terms, we see that there has been an upward increase for years. We can see similar graphs in almost every central bank.
When we move on to precious metals after government money, we can think Gold which is the longest money and investment tool. Gold with its attractive yellow color, machinability and at the same time its use in industry, it has taken its place both as a money and an investment tool until today.
When we check the monetary policy feature that Gold has, although it is the most valid theory today that it is limited in number on Earth, the reality takes us to a very different point.
In the chart above, we see the gold’s mining production amount graph for the period 1900–2014. The result in this graph; It is the increase of gold production, which is stated to be limited in supply, instead of falling against time. In fact, there is such an increase that the total amount of gold excavated in 2014 is 4 times more than in 1912. Although there is no clear information about whether Gold production will reach the limit in the future or how much Gold will be mined, we know that the increase in Gold supply has not stopped and the mining rate is constantly increasing.
When we move on to Bitcoin after government moneys and Gold, we come to the conclusion that Bitcoin qualifies from Satoshi as a cash and precious metal, but with its rate of increase in supply and its limited supply is neither like cash nor similar to Gold.
In the light of all this information, we can say that the fact that Bitcoin is different from two real sustainable examples creates question marks for its sustainability.
4. Can Cash Or Precious Metals Be Completely Disappeared?
When Satoshi Nakamoto identified a limited supply of 21 million units in Bitcoin, he was missing out on an unimaginable danger, perhaps for a limited supply cryptocurrency.
Today, it is almost impossible for them to disappear completely from the face of the earth, be it cash or precious metals. Because if we define state money as cash, when these moneys are burned to ashes as a result of any reason, new moneys can be printed that can be replaced by the states. Also, no any weapon or chemical reaction has been found that could completely wipe out precious metals from the face of the earth. What about Bitcoin?
When a Bitcoin is lost, that is, the private key accessing that money is deleted or a Bitcoin is sent to the wrong address, these transactions are irreversible and the owned Bitcoin will be destroyed forever. Therefore, Bitcoin is not never reversible like government moneys or indestructible like precious metals. While this is the case, we can say that a limited monetary policy is open to uncertain and dangerous scenarios, as the amount of lost Bitcoin will increase as time goes on. One day, the amount of lost Bitcoin will surely exceed the remaining amount of Bitcoin.
5. What Happens When Block Rewards End?
Another important issue that needs to be questioned about Bitcoin’s supply model is how to ensure network security when the Bitcoin supply comes to an end. This is because the miners who protect the network work in exchange for earning in the block rewards and with the ever-decreasing block rewards in Bitcoin, it is not entirely clear whether miners will profit in the future or not.
Satoshi Nakamoto’s theory on this subject is that when Bitcoin reaches the end of its supply, the miners in the network will earn income from the commissions from the network transfers and the network will work in this way. Well, then let’s examine Satoshi’s theory with the data up to date.
In the chart above; We see the revenue from Bitcoin’s block rewards. In the process up to now, with the continuous increase in Bitcoin price, the block rewards have increased in dollar terms, even though they have decreased in btc basis. This is a good result for the network to work more securely day by day because it means that the more rewards there are, then the more miners, and therefore the more secure the network.
When we give the chart a little more detail, we see that the revenue from Bitcoin’s block rewards has peaked in the $44 million, $66 million, and $67 million regions and has bottomed out in the $5 million and $7 million regions over the past 4 years. The average block reward for the last 4 years is around $20 million per day.
After the block rewards, when we look at the commission income from network transfers of Bitcoin, we see that in the last 4 years, it has peaked in the regions of $21 million and $17 million and bottomed out in the regions of $50 thousand and $90 thousand. The average commission income for the last 4 years is around $1 million per day. Now, let’s start thinking about all this data.
First of all, bottom income regions are the most important region for the network to maintain its miner power. When the reward amount in the network starts to decrease, the miners who make little profit or even can’t get the electricity money start to turn off their devices and the network starts to lose power. So, when we first check the amount of rewards in the bottom income regions, we know that in the last 4 years, there has been a minimum of $5 million in block rewards and a minimum of $50,000 in commission rewards. There is a difference of approximately 100 times between these two ratios. With this, when we control the average mining revenue, we know that there has been an average of $20 million in block rewards and $1 million in fee rewards over the past 4 years. The difference between these two ratios is about 20 times.
In addition to all these, let’s examine one more data.
In the chart above, we see the price of Bitcoin and simultaneously the daily tx number. While the daily tx(transaction) number of Bitcoin was in correlation with the price until 2017, the correlation started to deteriorate in 2020. Also, although the price in 2021 increased 3.5 times compared to 2017 but the usage rate(tx number) decreased by 28% and 50% in the peak price zones.
When we summarize all these; We can conclude that there is a significant difference between the revenue from Bitcoin’s block rewards and the revenue from tx fees, and the usage rate of the network has lost its correlation with the price. These results may suggest a significant drop in mining power, and hence a weakening in network security, when Bitcoin’s block rewards come to an end. At the same time, there will always be a concern about what will happen in the future.
Grin’s Justice Basis
Ignotus Peverell knew most of what we were discussing about Bitcoin. He summed up most of what we said in just 8 items in a forum post and made us question things.
With what he knew, he brought to life the idea of a new monetary policy that was rarely seen on Grin and Ignotus created Grin with an unlimited and fixed incremental monetary policy, unlike both Bitcoin and government moneys. This way, it paved the way to be a more sustainable and more equitable resource than Bitcoin with unlimited supply, and to eliminate the uncertainty of what will happen to state currencies and precious metals in the future with its fixed incremental supply.
1. Constant and Unlimited Injection of Supply
The constant and infinitely increasing supply in Grin’s monetary policy makes the amount of Grin distributed the same from day one to eternity.
This situation is for Grin;
. does not make early adoption very advantageous because the distributed supply does not constantly decrease
. price volatility has the potential to be low because this monetary policy creates longer-term monetary inflation and make resistance to high price volatility.
. creates an incentive to be used as a real means of payment rather than being held in the wallet because without mass adoption and use, Grin is of no value.
2. Can Grin Be Both Electronic Cash and Precious Metals?
It is safe to say that Grin, with its unlimited supply and continuous emission, has the potential to be both a precious metal and a cash payment instrument because it has the feature of constantly increasing and unconstant supply that both government coins and precious metals have.
In addition, since it will be known how much Grin will be produced each year, the Grin can be a better system than them since there is no uncertainty about how much will be produced as in goverment currencies and precious metals.
3. Can Unlimited Supply Be Sustainable Money or Investment Tool?
If we speaks of sustainability, we can claim that an unlimited supply might be a better choice because, when we consider silver and gold, which are the longest-lasting sustainable examples in the world, we see that these metals still do not reach the end of their supply and also the quantity mined keeps increasing instead of decreasing.
In addition, limited assets are often those that generate a desire to hold. That’s why limited edition artworks and assets are of great value, but they don’t change hands too much. We know this situation quite well from Bitcoin because it makes desirable to hold it in hand. But, the disadvantage of limited supply is to be considered again, as cryptocurrencies are of no use when held.
4. Is It A Problem If The Grins Disappear?
Since the supply of Grin increases unlimitedly and constantly, no matter how much Grin is lost, Grin is unlikely to be harmed because the supply problem will gradually be resolved with new Grins to be produced in the coming years. For a better understanding of the situation, think of 50% of Bitcoin’s supply being lost. While this is an irreversible scenario, if 100% of the Grin supply is lost, this problem can be resolved as new Grins will be produced over time.
In addition, since transfers are made through online connections in Grin, if transfers are made to wrong connections, the probability of the Grin being lost is less because the wrong receiving connection will be less likely to be online. In this case it is an added advantage of Grin.
5. Block Rewards Fixed and Never Ending
Grin’s block rewards are set to distribute 60 Grin every minute, forever. This monetary policy is highly advantageous for the sustainable security of the network as miners constantly receive a fixed amount of Grin because
. since block rewards will never end, the network security risk will be much lower in the future compared to networks that will only work with commissions.
. the contribution of fixed block rewards to price stability also has the potential to stabilize changes in the number of miners. Stable changes, create stable network security.
In addition, Grin’s monetary policy is very simple and easy to understand. Since 1 Grin is distributed per second, 60 seconds equals 60 Grin coins. It is that easy!
The Destiny Intersections of Grin and Bitcoin
Intersection of 19
Satoshi Nakamoto, the inventor of Bitcoin, opened his Bitcointalk account on November 19, 2009.
Tom Elvis Jedusor, the inventor of Mimblewimble, wrote the Mimblewimble article on July 19, 2016.
Ignotus Peverell, the inventor of Grin, opened his Github account on October 19, 2016.
Intersection of August 2
Tom Elvis Jedusor disappeared after posting his last message on August 2.
Ignotus Peverell disappeared after posting his last message on the forum on August 2nd.
9–15 January
The publication range of the article, in which The Economist predicts a common currency in the future, is January 9–15. The Bitcoin network started to work on January 9, 2009. The Grin network started to work on January 15, 2019.
Conclusion
Bitcoin was the first cryptocurrency to be born in response to government currencies and tried to be decentralized step. It was very valuable during the period it emerged and for the features it had. However, it is necessary to know that Bitcoin is man-made, and that it may have shortcomings and ultimately, an end. Grin, on the other hand, is a new step that focuses on and tries to address many of the shortcomings in Bitcoin, other cryptocurrencies, precious metals and government currencies.
Minexpert — Cihat M. Ozturk
Note: More will be in the book “SUNRISE OF GRiN”. If you find a message about date intersections or if there is a point in the book that you want me to explain, you can leave a comment without hesitation.
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