Why weren’t the burned Counteryparty Bitcoins just given to charity?


What’s up, party people? Chris DeRose, Community
Director of the Counterparty Foundation here,
and on this video, I wanted to address, “Why
don’t we give the Burn Coins to charity?”
This is something I’ve seen. It’s been a bit
controversial for some people, and I understand
why it’s been controversial. For a lot of
us, money is sacred. For a lot of us, Bit
Coin is sacred, and it’s really hard to conceive
of burning something, I think, that is sacred.
And then, too, I think a lot of people have
apprehensions about, perhaps, what is and
isn’t a charity.
And so I think that it’s important for all
of us to consider that, in fact, when we burn
coins, we are giving to charity. That’s quite
literally what it is. We are giving to everybody
on the network in an equal proportion and
in proportion to their holdings, even. So
it’s a bit of a misnomer to suggest that it
isn’t given to a community foundation in the
first place.
Well, let’s get more specific. Some of the
problems you have when you decide to give
to a charity is, right off the bat, what charity?
So it would, perhaps, be nice to suggest Sean’s
Outpost or some such thing, but the reality
is that when you give to a charity like that,
you’re removing funds for another charity.
So then you might say, “Well why not, perhaps,
Rain or one of these other charities?” And
so as you get to be exclusive with these donations,
the opportunity cost is coming out of cost
from some other association. And a lot of
values at work, there’s people that believe
that maybe this charity is better and that
you’re not doing as much good. So I think
that the most democratic, the most utilitarian,
the fairest distribution at that point is
quite literally to give to everybody.
So I think, too, for some people, they have
a hard time conceiving of what it is to Burn.
And you can imagine that, perhaps, instead
of burning the funds, what you do, instead,
is to do the calculations where you say that
this coin is to be distributed amongst all
holders of Bit Coin, perhaps. And you could
divide it into many, many small pieces, and
then you could turn around and send it to
all of these people. Yes, the transaction
costs would make that unfeasible, but if you
could do that exact action, what would you
have mathematically? Nothing different than
burning the coin. So it’s a bit of a source
for confusion, but I think that it needs to
be addressed. And the answer quite simply
is that we do give to charity. It’s a selfless
act, and it’s a virtuous one. And that’s why
we do it because it is the most objectively
fair solution.
That’s it. It’s an easy one today. Again,
I’m Chris DeRose. You can Tweet me @DeRoseTech
on Twitter. Ask me any questions you have,
and if you like the content, subscribe to
the video. I’d love to have you around.

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