cryptoblockchain

1 BTC = 1 BTC": just a meme or a central truth of the crypto world?

Only when you live with the ‘one bitcoin equals one bitcoin’ tag side by side every day, you begin to exist and then develop in the only global economic free zone - the ‘cryptofshore’."

This is the opinion that Web3 researcher Vladimir Menaskop shared with ForkLog's editorial team. He kindly agreed to follow along with the author of the material along the paths of the popular thesis “1 BTC = 1 BTC”, which is unknown to many people.

In this article we will tell you how this formula originated and what its essence is, as well as compare the first cryptocurrency with cocoa beans and remind you how manipulation of information and loud phrases can influence the actions of investors and enthusiasts.

The Immature Becoming Narrative
On February 23, 2019, bitcoin evangelist and vice president of Riot Platforms Pierre Rochard published a graph reflecting the identity of one bitcoin to its own - “1 BTC = 1 BTC.”

This tautology confused many in the community, and six years later still causes frequent misunderstandings due to its multifaceted nature. And in some cases it becomes a way of manipulation due to distorted interpretation.

Then JAN3 CEO Samson Mou reacted to Roshar's tweet. The head of the bitcoin infrastructure company linked the statement to the limited issue of the first cryptocurrency of 21,000,000 BTC. However, he noted that a deflationary mechanism alone is not enough to create sound money - money that can retain purchasing power over time. He added that despite the drawbacks, this characteristic allows for “other things” to be measured with digital gold.

Atsu Dawo, founder of African crypto-payments platform Bitsika, then noted that Roshar's graph is incorrect because not all coins were mined as of 2013. Consequently, the relative value of 1 BTC will decrease over time until mining stops - only then will the judgment become correct.

According to him, the thesis “1 BTC = 1 BTC” - is not a mantra or a meme, but “the whole essence, essence and even existentiality of Web 3.0 and Web3 as an ideology”. It is reflected in the crypto-punk manifesto, which talks about privacy - the transmission of the minimum possible amount of information needed solely for the transaction:

"This information, or more precisely, the transferred value (value) is one bitcoin or any part of it. This approach is the first attempt to transfer value through the network. This is how the paradigm is being broken. Today, few people are starting to come around to the idea that 1 BTC does not have to be sold to be used. It turns out bitcoin is the reserve currency."

'Ours' - what we don't own
In 2019, in the evolving phase of Web3, it was difficult for many to see and realize the breadth of the “1 BTC = 1 BTC” thesis. The crypto market experienced a severe decline that lasted more than a year and a half. Along with the hopes of early crypto traders and short-term investors, the value of digital gold collapsed from ~$20,000 to around $3500.

Oeople who rely on a more systematic and global approach, cryptozyme has been an occasion to rethink the value of virtual assets, particularly their flagship. Here, the established “tautology” became the basis for an interdisciplinary view of the system and the formation of rigid FOMO filters.

In an attempt to get to the truth, we turned to Web3 researcher Vladimir Menaskop for help. The 2021 enthusiast identified 10 fundamental principles that define the concept of “1 BTC = 1 BTC”.

He suggested focusing on three aspects that will help survive the next cryptozyme, when institutional appetites are likely to grow.

When the amount of money is limited, the price of things depends on demand and how rare they seem to be - while the unit of money itself remains stable. But if there is more and more money, the prices of goods begin to “float” because the very basis on which everything is measured changes.

In other words, the value of goods must adjust to the increase in the amount of money in circulation. For example, the price of buckwheat or lobster in bitcoin would be based on a constant variable - the limited supply of BTC - as opposed to an unstable variable - the U.S. dollar.

While a limited supply of currency alone does not guarantee the availability of “sound money,” it can mitigate the effects of inflation and even prevent it.