Dhruv Bansal's unique view of the bitcoin issuance process sheds light on the fact that the 21 million bitcoin aren't being created; they're simply being unlocked. This perspective offers a fresh angle on the issuance process, which is often misunderstood.

The world of bitcoin is divided into two categories: the asset and the network. While the asset is volatile and has a fixed supply, the network, which maintains an unbreakable ledger, is often overlooked. Dhruv's perspective places a greater emphasis on the network, protocol, and immutable ledger, which are crucial components of the bitcoin ecosystem.

In a recent podcast with Peter McCormack, Dhruv discussed the fixed supply of bitcoin in a new light. He framed the concept in a way that simplifies the two versions of bitcoin:

1. Version 1: The commonly held view is that the 21 million bitcoin will be issued over a 131-year period, from 2009 to 2140. According to this view, as of March 2024, approximately 19,659,000 bitcoin have been issued, which is 93.62% of the total supply.

2. Version 2: Dhruv's view is that all 21 million bitcoin were created via the network, consensus mechanisms, algorithms, and protocol on January 3, 2009. The monetary policy and supply issuance for those 21 million were fixed on that date. Therefore, all 21,000,000 already exist but have not yet been released or unlocked.

Dhruv's framing is significant because it helps us understand how the fixed supply of 21 million coins can be protected for 131 years. By viewing mining as buying coins rather than creating them, we can make sense of the constantly increasing difficulty. This perspective also highlights the importance of the network's security layer, which is crucial for the long-term success of bitcoin.

Furthermore, Dhruv's framing highlights the two markets operating in the bitcoin base layer: Layer zero and Layer one. Layer zero is the security and monetary policy layer, which is enabled via math and code at an auction that occurs every block, approximately every 10 minutes. Layer one is the market for block space, where individuals can include transactions in a block for a fee.

Conclusion:

In conclusion, Dhruv Bansal's perspective on the bitcoin issuance process offers a fresh and insightful view on the fixed supply of bitcoin. By emphasizing the importance of the network and protocol, and framing mining as buying coins, Dhruv's perspective helps us make sense of the constantly increasing difficulty and the importance of the network's security layer. Additionally, his distinction between Layer zero and Layer one highlights the two markets operating in the bitcoin base layer. Overall, Dhruv's perspective offers a valuable contribution to the ongoing conversation about the future of bitcoin.