Reprint #Bitcoin 2.0: $KAS

- The first stateless, digital, hard currency.
From Fiat to Bitcoin to Kaspa
@Altcoinist_com
Analysis of the three parts
TL; DR Summary
Fiat Standard:
▫️ Depreciation: Since 1914, major fiat currencies such as the pound and the dollar have depreciated by over 95% relative to gold.
▫️ Inflation and investment: In 1971, the US dollar was decoupled from gold, making it unfavorable for savings. Inflation soared. In response, people began investing in stocks and bonds to keep up with inflation.
▫️ Risk of Hyperinflation: Due to the issuance of unsupported currency, there is an inherent risk of hyperinflation in the legal system.
Large-scale currency issuance: Over 80% of the US dollars have been printed since 2008 (when the Bitcoin white paper was released).
▫️ Widening wealth gap: Middle and lower-class individuals lack investments that appreciate with excessive money printing, causing them to become even poorer due to the devaluation of cash currency.
Bitcoin (BTC) as an alternative:
🔸 Digital Gold: Bitcoin, as a digital substitute for gold, provides a deflationary model and is independent of government control.
🔸 Investment Transformation: Due to Bitcoin's outstanding potential in fiat currency inflation, people's preference for Bitcoin has surpassed traditional assets.
🔸 Scalability Challenge: Bitcoin faces scalability issues that hinder its effectiveness as a medium of exchange, preventing it from realizing Satoshi Nakamoto's vision of peer-to-peer electronic cash.
🔸 Decentralization issue: Due to the launch of ETF products by institutions and the acquisition of Bitcoin mining companies, Bitcoin will become more centralized and controlled by giants such as BlackRock.
Bitcoin 2.0: $KAS-the first digital hard cash
▫️ Fair and Decentralized Release: Similar to Bitcoin, the release of Kaspa is fair, with no pre-mining or ICO, ensuring equal participation for all stakeholders.
▫️ Solving Bitcoin's limitations: Using BlockDAG technology, Kaspa significantly improves Satoshi Nakamoto's proof-of-work algorithm. This innovation makes the chain faster than traditional blockchain systems, currently running at 10BPS on the test network, with a target of 100 blocks per second, ultimately meaning block production speed (and scalability) is 60,000 times faster than Bitcoin.
▫️ Technological Innovation: The integration of GHOSTDAG and DAGKnight protocols improves transaction speed and security while maintaining the robustness of proof of work. Kaspa uses Rust for application development, further enhancing its potential to be not only a medium of exchange but also a programmable currency.
▫️ Decentralized issuance: Kaspa's rapid issuance plan and unique algorithm ensure fair token distribution, favoring ordinary CPU/GPU miners rather than ASIC operations in the first 18 months.
@BITMAINtech
It took about a year and a half to develop the Kaspa dedicated miner. During this period, 70% of $KAS was allocated to individuals using basic computing devices to prevent centralization and promote widespread ownership.
▫️ Decentralized token distribution: The largest $KAS holder owns no more than 1.55% of the total circulating supply.
Chapter 1: Deficiencies of the Legal Tender System
Analysis of Currency Depreciation, Inflation, and Economic Disparity
Since 1914, the development of legal tender (especially the pound sterling and the US dollar) has been accompanied by severe devaluation and economic challenges. This article delves into key aspects of legal standards and explores their impact on the economy and individuals.
Compared to the depreciation of gold: Since 1914, major fiat currencies have experienced significant depreciation, depreciating over 95% compared to gold. This depreciation reflects the inherent instability and lack of intrinsic value of fiat currencies.
The era of the gold standard: In 1971, the US dollar's departure from the gold standard (the end of the era of commodity-backed currency) was a turning point that led to an increase in inflation rate. This transformation reduced the reliability of fiat currency savings and prompted investors to seek refuge in stocks and bonds to mitigate the impact of inflation.
Hyperinflation and Currency Issuance: The risk of hyperinflation is a major concern in the legal system, and unsupported currency issuance exacerbates the risk of hyperinflation. It is worth noting that about 80% of the currently circulating US dollars have been printed since 2008, highlighting the extent of currency expansion and its potential impact.
The widening wealth gap: Rampant printing of money and the resulting inflation have disproportionately affected individuals in the middle and lower classes. These groups often lack opportunities for appreciating investments, leading to a widening wealth gap as the cash they hold depreciates due to currency devaluation.
In short, the legal currency system characterized by the separation from tangible assets such as gold has led to significant economic challenges, including currency depreciation, inflation, and widening wealth gap.
Chapter 2: Bitcoin Standards - Evolution and Impact
Satoshi Nakamoto founded Bitcoin in 2008, marking the beginning of a new era of digital currency.
Satoshi Nakamoto's creation is not only a technological breakthrough, but also a response to financial crises and restrictions of the legal currency system.
Bitcoin is designed to be a decentralized peer-to-peer electronic cash system, aiming to provide users with a digital alternative that is not controlled by the government.
At the core of Bitcoin is the use of blockchain technology, using encryption to ensure secure and transparent transactions.
This innovation is expected to bring a new type of currency that is both secure and easy to transfer, challenging the traditional financial system with its decentralized nature.
However, the journey of Bitcoin has undergone a significant transformation from its original vision. While its purpose was to serve as a medium of exchange, it is increasingly seen as a store of value, similar to digital gold.
This transformation is partially due to scalability challenges limiting its ability to handle the scale of transactions envisioned by Satoshi Nakamoto. The limited throughput and high transaction costs of blockchain have been obstacles to its widespread use as a daily currency.
To address these challenges, solutions such as the Lightning Network have emerged, aiming to increase transaction capabilities and drop costs, bringing Bitcoin closer to its original purpose.
Despite these scalability issues, the fixed supply of 21 million bitcoins will increase its value over time, as reflected in its high stock-to-flow ratio, which is a key indicator of its store of value potential.
The rise of Bitcoin is closely related to government policies and economic theories. Its emergence during the financial crisis highlighted the need for alternative solutions to traditional fiat currencies, which are susceptible to inflation and government manipulation.
By providing a decentralized alternative, Bitcoin challenges the established financial order and proposes a system where value is determined by market dynamics rather than central authority.
The unrealized dream of Satoshi Nakamoto
Despite achieving groundbreaking achievements, Bitcoin still struggles to fully realize Satoshi Nakamoto's original vision of a decentralized, peer-to-peer electronic cash system.
Satoshi Nakamoto hoped that Bitcoin would facilitate everyday transactions and bring about a new degree of financial freedom and efficiency.
However, the reality of Bitcoin's evolution presents different narratives.
The scalability issues of Bitcoin, characterized by limited transaction throughput and high fees, hinder its widespread adoption as a daily transaction currency. Instead, it has become more like digital gold, a store of value, rather than the medium of exchange envisioned by Satoshi Nakamoto.
This deviation has raised doubts about the future development trajectory of Bitcoin and its ability as an efficient electronic cash system.
Chapter 3: Kaspa (KAS) - Bitcoin 2.0, the first digital hard cash.
Paving the way for Satoshi Nakamoto's vision
Kaspa (KAS) emerged as a contemporary solution aimed at realizing Satoshi Nakamoto's vision of a peer-to-peer electronic cash system, which Bitcoin has been striving to fully embody.
Kaspa emphasizes the fair and decentralized release, reflecting the original spirit of Bitcoin, avoiding pre-mining or ICO to ensure fair access.
Kaspa's distinctiveness lies in its technological leap in addressing the limitations of Bitcoin, especially in terms of scalability.
The core of Kaspa's innovation lies in the use of BlockDAG technology, which greatly improves transaction speed. Unlike traditional blockchain systems, Kaspa has achieved unprecedented running speed, currently achieving 10 blocks per second on its test network and aiming for 100 blocks per second.
This kind of acceleration means that the block production speed may be 60,000 times faster than Bitcoin, fundamentally improving scalability and efficiency. This scalability means that $KAS becomes faster than VISA.
Kaspa's technological advancement is not only reflected in speed. The integration of GHOSTDAG and DAGKnight protocols combines transaction speed with higher security, while retaining the inherent robustness of the proof-of-work system.
Coupled with application development using Rust, Kaspa is expected to go beyond being a simple exchange medium and become a platform for programmable currency.
The project's commitment to Decentralization is evident in its issuance schedule and token distribution strategy. Kaspa initially leans towards CPU/GPU miners, ensuring wide token distribution, resisting centralization, and nurturing broad ownership.
Even if dedicated Kaspa-specific miners appear, the total circulation owned by the largest $KAS holder does not exceed 1.55%, maintaining decentralization and fair distribution.
In short, Kaspa's approach, marked by technical innovation and commitment to Satoshi Nakamoto's original principles, makes it a strong competitor in the field of digital currency.
It can solve the scalability challenges of Bitcoin while maintaining the spirit of decentralization, which may realize Satoshi Nakamoto's early vision of a truly efficient and decentralized electronic cash system.
Consider the theoretical analysis of the depreciation of fiat currency, the scarcity, utility, and game theory of $KAS.
Impact of Legal Currency Depreciation:
▫ Inflation Pressure: As major fiat currencies such as the USD experience severe inflation, purchasing power is decreasing. This trend may prompt more investors to turn to cryptocurrency as a hedge against inflation.
▫️ $KAS as a hedging tool: Compared to fiat currency, Kaspa is seen as a stable deflationary asset, which may attract investors seeking preservation of value, potentially increasing demand and price.
Scarcity and Token Economics:
▫️ Fixed Supply: The fixed supply of 287 billion $KAS for Kaspa may lead to its scarcity, which is a key factor in its value proposition in the world of monetary inflation. As more KAS tokens are mined and the issuance rate slows down, this scarcity may intensify, potentially driving up prices.
▫️ Emission Schedule: Kaspa's unique emission schedule roughly halves the rewards annually, creating a cyclical scarcity effect similar to Bitcoin's halving event, which is typically associated with price increases.
▫️ Practicality and Adoption:
Technical Advantages: Kaspa's faster transaction speed and scalability can enhance its practicality in various applications such as Decentralized Finance (DeFi), thereby potentially increasing its adoption rate.
▫️ Network Effect: As more and more users and applications adopt Kaspa, its value may increase due to the network effect. As more people use it, the utility and value of the network will also grow.
Theoretical practice: $KAS price prediction
We can use certain models and assumptions, including the historical price growth of Bitcoin and specific properties of Kaspa. Please note that this scenario is hypothetical and should not be considered financial advice.
Assumptions and Considerations:
▫️ The historical growth pattern of Bitcoin: with the large fluctuations in price, Bitcoin has shown exponential growth, especially in its early days of scalability and specific scalability. The driving factors of its growth include the increase in adoption rate, technological progress, scarcity caused by halving events, and its attraction as a digital store of value.
▫️ Kaspa's unique features: Kaspa's fast block time, scalability, and innovative use of BlockDAG technology set it apart. If these features lead to increased adoption, usability, and significant price fluctuations, they could have a positive impact on Bitcoin's price. Bitcoin has already shown exponential growth, especially in its early stages.
▫️ Market dynamics: The cryptocurrency market is influenced by the global economic situation, regulatory changes, technological progress, and investor sentiment.
▫️ Scarcity and demand: Kaspa's fixed supply and emission schedule may create scarcity, which would have a positive impact on its price if demand increases.
Price prediction scenario:
▫️ 2024:
Assuming that Kaspa's technology is attracting attention for its speed and scalability features, if they lead to increased adoption and utility and the cryptocurrency market remains bullish, we may see a significant increase in the price of KAS. If it follows a growth pattern similar to early Bitcoin, a 15-30x growth within a year is not unrealistic. This would make $KAS approximately $1.80 to $3.60.
2025 - 2026:
Continued adoption can sustain its growth, especially if Kaspa finds niche markets in DeFi or other blockchain applications. Assuming a growth rate of 6-12 times over the next two years, $KAS valuation could be between $3.60 and $14.40.
2027 - 2029:
As the market matures and Kaspa's emission rate decreases, the scarcity effect may emerge. If Kaspa maintains its technological relevance and practicality, a further 6-9x growth during this period may be reasonable, potentially driving the price of $KAS to around $7.20 to $43.20.
Silver and $KAS:
Assuming Kaspa can achieve a market capitalization equivalent to silver due to its utility, scarcity, and advantages as a digital asset, we may see a significant appreciation in its price. If Kaspa's market cap reaches $1.4 trillion, considering a maximum supply of 28.7 billion tokens, this would equate to a price of approximately $48.78 per $KAS.
Key factors to pay attention to:
🔍 Adoption: The scope of Kaspa's practical application.
🔍 Technological development: Innovation of Kaspa's internal and competitive blockchain.
🔍 Regulatory environment: policies affecting the cryptocurrency market.
Market Sentiment: Investor Confidence and Speculative Trends.
🔍 Global Economic Conditions: Macroeconomic Factors Affecting Cryptocurrency Investment.
🔍 Fiat currency devaluation: The inflation rate of fiat currency.
It is critical to treat such predictions with caution. The cryptocurrency market is highly unpredictable, and many unforeseeable factors could significantly alter any digital asset.
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