This is the presentation used at the May 15 Brisbane Bitcoin VS Bitcoin Cash Meetup. It's a companion to the full article & thesis I've written (am still writing) on Medium @AleksandarSvetski Note - it's a rush job, slapped together in a few hours so there are probably mistakes. In any case, I hope you find it informative.

1. By Aleks Svetski
Decentralized Podcast @AleksandarSvetski

2. Acknowledgements & Disclaimer
Thanks to everyone that’s come along.
Credit where credit is Due. Hayden & Brendan are smart guys.
Sorry / Not Sorry to anyone who gets butt-hurt. Get over it / Grow Up.
My approach:
- First Principles, Engineering, Economics, Math, History, Evolution, Logic.
- Avoiding: Conspiracies, Dogma, Religious Overtones, Personal Attacks

3. @AleksandarSvetski

4. Why are we here?
We want the same thing!
We have a different approach & different levels of understanding and
experience.
The case I’m going to make is not for or against Bitcoin or BCH per-se.
It’s for the methodology / strategy I believe is most important for this
experiment to succeed and change the world.

5. “Kindly let me help you you, or you will
drown”
Said the Monkey, putting the fish safely
up a tree.
Every disaster comes from “good
intentions”...
Alan Watts.

6. Foundations

7. WHY did Bitcoin work in the first place?
Bitcoin is a fluke. It’s a freak of nature accident that’s had a global impact and will
change the course of history for all of us.
It worked because:
1. Satoshi disappeared once it had gained enough initial traction / level of
‘decentralization’
2. Game Theory. The Selfish Gene is inherent in all humans & ecosystems
3. Network effects. It was allowed to grow mostly un-inhibited until it was too late
to stop!!

8. WHY did Bitcoin work in the first place?
● The timing of when it was launched (2008/2009)
● The kind of people who initially supported it
● It was a 0 to 1 innovation at the time
● It’s become the reserve currency for the space
● All the infrastructure has been built around it
● It’s the most trusted network, and the players who actually count, all have their
funds held in it.
The timing, and the factors listed above mean that if we tried to “re-do” this
experiment, it’s not going to work in the same way.
- Remember Egold?

9. Bitcoin was not successful because:
- “Blockchains” are some amazing innovation,
- Of some “magic economic formula” of 21 million coins,
- Of a 4yr half life on mining rewards,
- Of how quick the transactions are,
- How big the blocks are!!!
NOT BECAUSE

10. Decentralization and Censorship Resistance
Because of the weird concoction, of all of the above factors, we have something
that is:
● Digital
● Divisible
● Mathematically secure
● Surpassed a critical mass
● Neutral (in just about every way, ie; politically, racially, status, etc)
● Decentralized (on more levels, AND, more than than anything else)

11. Decentralization and Censorship Resistance
And as a result provides:
1. Censorship Resistance
2. Sovereign Ownership
Of a Bearer Asset, which can represent a value, for anyone,
anywhere, at anytime.

12. VALUE

13. 2 Strategies. One is Superior.
Store of Value - Bitcoin
- Security First.
- Decentralization
- Censorship Resistance
- Robust Network
- Multi-Layer Redundancy
- Settlement Layer
- Reserve Asset
- Abstract frequency & complexity
off chain (exponentially scalable)
- Multi-layer crypto-economic
guarantee (miners, nodes, lighting)
Transactional “Currency” - Bitcoin Cash
- Speed & Transactional Utility 1st
- Frequency & complexity kept on
chain
- Linearly scalable
- Faster transactions (currently)
- Cheaper transactions (currently)
- Single layer of security
- Single layer validation
- Scales → Centralisation

15. Bitcoin Cash
Disadvantages
Weaknesses
Null Arguments

16. Blockchain Trilemma
Vitalik Buterin:
The trilemma claims that [decentralized] blockchain
systems can only at most have two of the following three
properties:
● Decentralization
(Defined as the system being able to run in a
scenario where each participant only has access to
O(c) resources, ie. a regular laptop or small VPS)
● Scalability
(defined as being able to process O(n) > O(c)
transactions)
● Security
(defined as being secure against attackers with up
to O(n) resources)

17. I don’t give a shit how fast your
transactions are, if there is
volatility in the price;
YOU DO NOT have a currency.
A currency is stable, and it’s that
stability that gives rise to its use as
tender.
Transactional Currency 1st is NOT going to Work
Network Value starts with
security/safety/trust.
NOT with transaction speed.
BTC / BCH / Crypto network value
is WAAYYYYYYY too small and
thus volatile at the moment.
Volatility KILLS currencies! You don’t put the cart before the horse

20. On the WRONG Battlefield
BCH is Fighting a losing battle.
- Stable Coins
- 10 other major “payments” Altcoins
- Newer, Better technologies
- Government Digital currencies
- Corporate / Charter Digital currencies
You’re fighting on THEIR home turf

23. BCH is a better medium of exchange??? pfft...

24. Incremental Utility Increase → Void
It’s not enough of an innovation to make a difference.
BTC has enough transactional utility for its level of security & decentralization.
Utility is a “feature” and moving money 5-10 minutes quicker for 10c - $1 less is NOT strong
enough a reason to go down the path of decreasing the strength & censorship resistance of
a global store of value
Impacting that for a short term, linear scalability increase sounds like something a junkie
would do, ie; A quick fix.

25. Bitcoin Dominance
ZERO impact from fees
or block size!
OPEN SOURCE software
Competition was always
going to come.
Classic Gartner Hype
Cycle.
Some will survive, the
rest will wash away.

26. My Shitty Diagram (not to scale)

27. Bitcoin Advantages

28. Crypto-economic Guarantee on Multiple Layers
Miners
- Validate the Network.
- Proof of Work Consensus.
- Thermodynamic Guarantee of Security
Full Nodes
- Monitor the Network
- Communication medium between Miners & Users
- Non-financial incentive.
Lightning Nodes
- “Proof of Stake” type incentive / disincentive structure
- New layer of security that ANYONE can participate in.
- Scalable support layer for the network at large.
USERS

29. LESS IS MORE
The best form of architecture for Bitcoin to achieve maximum long term utility, security,
decentralization & censorship resistance:
Core Chain:
- Focus on security over speed.
- Deliver immutable, impenetrable source of truth.
- Strict language / function → Minimal attack vectors
All other applications should abstract OFF CHAIN
- High frequency / low value transactions
- Other more “smart” contract type functionality
- Anchored back to a neutral, secure source of truth.

30. Fundamental Engineering Principles
Building any complex structure, whether physical or
virtual requires using the right tool & the right constituent
for each individual purpose. Eg:
- A Bridge (Materials, Compression, Tension)
- Software (Front End, Back End, Middleware)
- Arterial / Capillary:
- Plumbing / Electrical Network
- The Internet
- The Human Body
- Layer 1 + Layer 2 Scaling

31. Solves Blockchain Trilemma by segregating
the problem / solution framework:
- Core layer focuses on Decentralization &
Security.
- Layer 2 network facilitates a subset of
transactions that require frequency &
speed.
- Layer 2 security achieved via
simultaneously anchoring all side chains
to the core chain.
- Layer 2 “mesh” architecture increases
overall decentralization
Blockchain Trilemma

32. Bitcoin Cash:
Goal: Stay true to title of the whitepaper
Reasoning:
Satoshi started with a core chain, so we
should stay with a single chain and do
everything on chain because “Satoshi said
so”, even if it’s to the detriment of it’s core
tenets.
Evolution vs Stagnation
We need to move on from the original hypothesis and stop referring to the original whitepaper
Bitcoin
Goal: Stay true to the essence of Bitcoin, ie;
Security, Decentralization, Cens. Resistance.
Reasoning:
“We need to build the right architecture to
achieve our goal, which means it MUST evolve
in order to accommodate new users at greater
scale, whilst maintaining the essence of Bitcoin.
Dogma = StagnationEvolution = Progress

33. Fee Market
- A fee market is a powerful thing.
- Markets create robust ecosystems with actual value
- Unlimited free transactions are stupid. It = Spam!
- Long term high fees are not a problem except for those who have NO long term view

34. Mass Adoption
In order for BTC to actually change the world, it needs to be adopted by the governments,
large corporates and broader public as a
1. Self Sovereign
2. Neutral
3. Censorship Resistant
4. Digital
Bearer Instrument
Having the large corporates starting to back BTC and blockstream would bring a level of
professionalism to the development cycle and the ecosystem at large is a sign that the store
of value hypothesis is far more important

35. My Issues with
Bitcoin Cash

36. Impatience / Short Term Thinking
Bitcoin Transaction fees have been “expensive” (> $2) for a grand total of:
2.66% of the duration of its existence!!!
And ONLY during a period of unprecedented speculative mania that made Tulip
Mania look like intelligent investment!
WHO GIVES A FUCK!
Stable, Secure, Steady Networks take time to build.
BCH cracked under pressure. BTC stayed strong.

37. Misinformation / Confusion
Bitcoin.com + Roger trash talking Bitcoin and the developers who built it is dumb.
“The real Bitcoin” that didn’t have mass consensus.
Conspiracy Theories, “Operatives”, “Satoshi Said” and “Dying Babies”.
The market doesn’t give a SHIT!
All you’re doing is scaring all the new people away (great job) and either polarizing
or pissing off all the existing people.
Similar to…. Bible Bashers and Network Marketers

38. Conflict of Interest
BCH Primary Supporters include, 2 key organizations:
1. Bitcoin.com
2. Bitmain
Both are also miners.
BCH has ONE validation (security) model: Mining.
No nodes
No lightning
hmm...

39. Fake Satoshi. 🤦🤦 🤦🤦 🤦🤦

40. “Kindly let me help you you, or you will
drown”
Said the Monkey, putting the fish safely
up a tree…
Every disaster comes from “good
intentions”
Alan Watts.

41. Thankyou...
Bitcoin Cash

42. Exogenous / Endogenous Pressure
If we are to have a global, neutral, decentralized reserve asset, it MUST be Robust.
Bitcoin has faced many enemies. Internal & External.
Each time it has prevailed. Each time it has come out stronger.
Exogenous Pressure makes a “living” organism stronger, more robust & immune.
BCH is the test run.
Governments / Central Banks are Next.

43. Collateral Damage
So Thankyou Roger.
Thankyou BCH Crew.
Thankyou for being the noble monkeys you are, laying down your financial lives
and reputation in order to make Bitcoin stronger.
In every war, there is Collateral Damage.
Bitcoin’s war is not with BCH, it’s with the current monetary system.
BCH is collateral damage.

44. CONCLUSION

45. The Only Strategy that Works is a
Neutral, Censorship Resistant, Scarce,
Digital Store of Value

46. The Real Enemy
Ultimately, we need to remember who the real enemy is here.
It’s not Bitcoin. It’s not Bitcoin Cash.
They are just strategies.
The Enemies are:
- The stale, inefficient, centralized institutions and “status quo”
- Corruption, Greed and Inequality
- Poverty, Financial and Debt Enslavement
- Dogma, Stupidity, Myopia and Ignorance
Let’s change that.

47. We all got in for similar reasons.
We’re all on the same side (at least I assume we are).
The fact that we’re debating shows that we actually care.
So let’s stop attacking each other.
We BOTH have a use case, and we both have a strategy - no matter how stupid we think the
other party is.
So...Here’s a crazy thought…
How about we work together???
Conclusion

48. Conclusion
Let’s change the system, together.
We have TWO attack vectors:
1. Bitcoin can focus on winning the game it can win. Censorship resistant, neutral, secure
Store of Value.
2. Bitcoin Cash can focus on being a transactional currency and competing with the guys on
the front line.
Should that not work, Bitcoin is the hedge & even BCH people have something to fall back on.
Bitcoin has time. It will remain that “boring” Store of Value, and should the network value grow
large enough & the price become stable, we may see a Medium of Exchange abstract off it.
So lets be a team here guys.

49. By Aleks Svetski
Decentralized Podcast @AleksandarSvetski