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5 entries
Satoshi outlines the economic model of Bitcoin, explaining that rational market prices reflect expected future value, and compares production cost dynamics to commodity pricing.
Bitcoin's first price was a production-cost estimate. Satoshi predicted in 2010 that market price would come to dictate production cost — not the reverse. The arc from 2009 to modern models.
Satoshi explains micropayments can be safely accepted immediately, describes how merchants detect double-spends, and clarifies that proof-of-work difficulty is hardcoded rather than transmitted.
How Bitcoin nodes agree on a single chain: SHA-256d proof of work, the difficulty adjustment algorithm, block validation rules, fork resolution, and probabilistic finality.
Satoshi explains transaction finality, the target of 10-minute block intervals, and how Bitcoin transactions become sufficiently irreversible in 1-2 hours.