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

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.