I finally tried Pat’s Coffee from fellow CoinGeek author and friend Patrick Thompson. Patrick accepts Bitcoin SV as a payment method, so I decided to use my HandCash Bitcoin wallet to pay for merchandise and shipping. As an online merchant, Pat’s Coffee has a strong incentive to accept irrevocable low-fee transactions online rather than credit cards. The only current drawback is price volatility, which has decreased since this deal took place.
I can pay for the goods via a completely private P2P transaction BSV dollars Which has 20 times lower fee rate (total total of 47 satoshis) than him BCH dollarsbut somehow #BCH It is “the best peer-to-peer money for the entire world”
– Joshua Hensley (@cryptoAcorns) 11 July 2022
The above transaction costs only 47 satoshis, which is about 3/1000 of a penny at $50 BSV. This is enabled by the 20x fee rate on BSV dropping to 0.05 satoshi per byte over the past two years, providing by far the lowest fees of any Proof of Work (PoW) blockchain. Note that the fee would have been cheaper if the transaction was executed with fewer UTXO coins spent. However, 2 UTXOs are split into 18 to maintain privacy, and take advantage of HandCash’s Output Bills technology.
Note that the actual transaction amount is hidden by this technique, (a bag of coffee doesn’t cost $25…however – more on that later) Was this the transaction I used for payment?
I could just pick a random transaction from the blockchain and confirm it as my own and no one would be able to contact me about it, except for Patrick himself. However, he has no incentive to do so!
Can anyone prove that this deal was mine? Can they prove that the deal resulted in income for Patrick? I’d like someone to explain why this level of privacy isn’t enough to justify having a Taproot, a Mimble-wimble or a Monero?
Even if I could prove that this transaction was between us, how much was sent to Patrick, and how much was spent as my change? How can one tell unilaterally how much sales tax is owed, or how much income tax Patrick owes? Is this even a taxable transaction? If this is the case, only Patrick and I know, and therefore it is our responsibility to report it.
The key is “not to add complexity, but to use it as it was originally designed”. Bitcoin has this ability as of January 3, 2009. However, when you specify block size, transaction size and remove script, this type of transaction is not possible. Arbitrary constraints enable developers to make themselves more important, and all recommended solutions are unnecessary and add complexity.
Given the economic conditions the world is facing, a return to this method of dealing is more important than ever. Inflation is out of control, supply chains are in shambles and food supplies are being artificially destroyed to the point of nausea. These circumstances demonstrate the failure of current governments and institutions. The only ones who will help ourselves are ourselves and we have to start doing that. Peer-to-peer transactions both in person and online keep money flowing between consumers and producers and enrich ourselves, while making miners brokers for settlement rather than corrupt financial institutions.
It’s as if someone told us about this 14 years ago…
Watch: BSV Global Blockchain Agreement Show, LiteClient: Scaling Blockchain With Simplified Payment Verification
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