I Read The BitTorrent Token Whitepaper. Here's What I Learned.

I Read The BitTorrent Token Whitepaper. Here's What I Learned.

By SkinnerCrypto | Magic and Lasers | 8 Feb 2020


First and foremost, I gotta tell you that BitTorrent has a special place in my heart, going back to when I wanted access to all kinds of... Internet things. When I heard that BitTorrent is wanting to put their foot in the BlockChain Game (and their subsequent acquisition by Tron) I was interested to say the least. Now, this is relatively old news in the way that the Internet goes, but I like to cover things as a both a retrospective and when I understand more about it. So then, I can tell you about it in my signature way of telling things.

And so... I went and learned more about it. Oh God.

This Requires Rocket Surgery

Okay, I'm no stranger to the intricacies of reading shit and being damn confused as to what exactly I'm reading. The BitTorrent Whitepaper was something I needed to take in stride. And that's coming from someone who read the Stellar Whitepaper:

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To BitTorrent's credit, you didn't need to be goddamn Good Will Hunting or have a PhD in Mathematics to understand their paper. It was for the most part in "plain" English. It was just their... implementation of protocol that made me do a double take.

So basically, the BitTorrent Token is supposed to be a currency that allows people to mediate/pay for/ be incentivized for downloads. They are treating downloads, seeding, and every other torrent activity as if it were a transaction. There is additional functionality on top of this which I believe they mean is something akin to a Dapp environment, where developers can get BTT tokens and use these in their apps, which are then trickled down to end users and such, which then make their way back into the pockets of exchanges, developers, downloaders, peers, seeders, and so on. They also want to "pay" end users so to speak, for their "attention" or their activities on BitTorrent. Here's a little diagram that they have that makes a little more sense:

351665157-a6ded2282ff9c1418caacd0b854685e819c3ceb36860d1e634ae6172958d9727.png

Ah, the circle of life.

This makes a lot of sense, especially if you understand Tron's PoS system and its super fast potential of having over 2000 transactions per second. Unfortunately, since the number of transactions they anticipate with the tokens will be enormous, they are doing what's called an "On-Chain Off-Chain" type  of infrastructure. This probably scratches the surface of what they're hoping to be capable of, but I think this is a great primer to the idea of P2P token for downloading movies illegally.

My Reaction To BTT

Okay, so I'm one of those folks that thinks blockchain isn't needed everywhere. We don't need to tokenize everything. Sure, it's crypto and it's cool and there are definitely a BUTTLOAD of use cases for blockchain and crypto tech, but where does it end? Are we eventually gonna tokenize toilet paper? Am I gonna have to someday go into my AssWipe Token Wallet, powered by ShitChain 7.6.00 in order to have me a proper roll for the bathroom? Am I gonna get paid a small amount of AWT for the attention I put into wiping my own ass? I'm sure there will be an app for that someday...

No, all levity aside, I think BitTorrent's idea is interesting, but also ambitious and this is why. Guess what their Token supply is gonna be. Go on, take a guess. Okay, if you're reading this and have been in crypto for long, you know the answer. Their total token supply is gonna be:

990,000,000,000 BTT TOKENS

Good god. I wrote once before that having an ungodly amount of tokens in the supply means you're hoping that the currency will appreciate in value only when we become a multi-trillion population Interstellar Species. Well, despite this, I do see what they are trying to do. These tokens are intended to be really super mobile, meaning they transfer to a shitload of different transaction all the time everywhere among the 100 million+ users of BitTorrent at any given time.

And if you read my stuff and see where my crypto philosophy stands, this is a good thing for a these reasons.

1.) By building crypto into the BitTorrent system, you are GUARANTEEING mass adoption. What better way to spread a token than by giving it to 100 million of your buddies and giving them reasons to use it? This is EXTREMELY important. Without this adoption, you can hang up any kind of increasing value.

2.) This is VERY much supporting In Flows and Out Flows. If you want a good supply and demand, you gotta have trading volume, both in and out. This is a fantastic thing, because by having a rotating system of tokens, you can guarantee that there is a possibly good stock to flow going on with BTT. It is smart to say the least.

3.) If Bitcoin's Stock To Flow Trajectory Stays true, a Near Trillion+ Market Cap for High Supply Coins Seems More Feasible. Again and Again I say it; Say Stock to Flow stayed good, and BTC reaches say, 100k in the next 5 years (This is within the realm of possibility) the market cap would be several trillion dollars. In a much larger mass adoption era like that, Half billion to nearly 1 trillion or more caps might not be unheard of.

HOWEVER, All of This Hinges on ONE SINGLE THING. The adoption and use that they expect to occur, MUST OCCUR. Otherwise, this is gonna be an absolute abject failure. My opinion only. One thing I did not read in the whitepaper was any method of deflation. If there is a method to burn tokens over time based on use, I didn't see it.

Should you invest in it? Well...(NOT FINANCIAL ADVICE. I AM JUST SOME ASS ON THE INTERNET).

Surprisingly enough, even with its outrageous supply, it is competing nicely with other small caps. The volume is impressive, and frankly I am not surprised at all. That's a ridiculous volume for such a small cap. But BEWARE! How much of this value is Hype? How much is over-value? If the adoption takes off like they say, then sure no problem. This could increase. Get it while it's cheap. IF in 5 years or so, it increases to say 0.25 per token, you're gonna kill it. Buy it, sit on it, or hell, use it. It seems alright.

Thanks for reading, I REALLY really appreciate it. If you like this post, then please check out some of my others if you want.

AND if you want an easy way to earn a little extra crypto and help me out for FREE, please consider becoming my referral for the app FREE LITECOIN! They payout reliably every Tuesday. I have recieved several payments from them religiously and the offerwalls they have bring in some nice amounts too. Highly recommended.

Until Next time...Keep your eye on the markets, and watch your step. you might walk into a large pile of BTT.


SkinnerCrypto
SkinnerCrypto

I'm a futurist, cryptocurrency enthusiast, techie, artist and aspiring land surveyor. I like to solve problems. I have some ideas for a planned community.


Magic and Lasers
Magic and Lasers

This blog is dedicated to the talk of Cryptocurrency topics, Futurism, Technology, and scifi/Fantasy.

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