Sqaure peg, meet round hole.
Earlier today the Department of Commerce announced that they have begun publishing GDP data to a number of different blockchains including bitcoin, and plan to begin to publish other types of economic data to blockchains in the future. This is being positioned as a signal to the American people that this administration is serious when it says it wants the United States of America to be the "CrYpTo Capital of the World."
While many, particularly those in CrYpTo, are joyfully lauding this as some revolutionary move that validates the existence of "blockchain technology", it is pretty obviously a useless virtue signal that misses the purpose of "blockchain technology"; provide the world with immutable truth via a decentralized, permissionless peer-to-peer network. With the focus being on information that is endogenous to the protocol itself. In the case of bitcoin; how much bitcoin is held in specific address at any given block height and the ability to send bitcoin from those addresses to other valid addresses. It's really that simple. Trying to anchor data that is exogenous to the network and claim "immutable truth" is literally impossible.
Sure you can embed data into a transaction that gets included in a block, but nothing that bitcoin does (or any other blockchain for that matter) can verify the validity of that data. It is impossible for the network to measure and validate anything that happens outside of it. The Department of Commerce publishing GDP data to blockchains has no practical use case other than catering to a voter base. How can we guarantee that the government won't publish incorrect GDP data by accident or make revisions to that data it has to amend in the future? We can't.
What's wrong with the current way GDP numbers are published? The government simply updates a row in an excel spreadsheet, publishes it to the internet and distributes the information to media and data companies who report it out to the public. There is nothing wrong with that and it's certainly cheaper than publishing the data to 9 blockchains.
If the Department of Commerce really wants to make a non-virtue signal gesture to bitcoiners they would get serious about building a strategic bitcoin reserve, find budget neutral ways to accumulate bitcoin, encourage companies to offer bitcoin benefit plans for their employees, and explore tapping underutilized government owned energy production assets to mine bitcoin. They would also rid themselves of the influence of the grifters in the crypto space who are very obviously leading them astray with useless nonsense.
Alas, the government experimenting with shitcoin pipe dreams should be expected. Everyone has to touch the stove.
Tyler Stevens argues that Bitcoin miners are fundamentally misunderstood. These machines convert 100% of their electricity into heat through computational work, making them sophisticated electric heaters that happen to mine Bitcoin. Stevens explains they function identically to traditional resistive heaters, but instead of simple heating elements, electrons pass through ASIC chips performing calculations. The physics are identical - electricity becomes heat - but with an added protocol layer that rewards the computation.
"100% of that energy you push through your desktop or your laptop... it doesn't have a screen... all that electricity used to mine is converted into heat." - Tyler Stevens
Stevens emphasizes this represents a complete inversion of how we think about mining. Rather than mining operations that waste heat, these are heating operations that generate Bitcoin as a rebate. This reframing is crucial for understanding why hashrate heating makes economic sense - the heat is the primary product serving an essential need, while Bitcoin rewards offset electricity costs.
Check out the full podcast here for more on HVAC industry disruption, Proto's modular hashboards, and Alaska's heating oil crisis.
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Final thought...
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