BGL Logical Principles

BGL LOGICAL PRINCIPLES

In the General Demonstration of Logical Principles, introduced by the German philosopher Immanuel Kant in 1781, three simple principles are required to establish the relationship between pure understanding and experience, thereby grounding the possibility of human knowledge. These are the fundamental pillars that uphold rational thought and coherence in formal logic: 1) Principle of Identity; 2) Principle of Non-Contradiction; 3) Principle of the Excluded Middle. 

Any Bitgesell (BGL) holder needs these three pillars, which support rational thought and coherence in formal logic, to understand the significance of Bitgesell in the broader context of cryptocurrencies or fiat money.

Principle of Identity in BGL

The Principle of Identity states that something is identical to itself. For example, one BGL coin in your wallet is the same as one BGL, just as a bar of gold is identical to a bar of gold, or A = A, 1 = 1, etc. Thus, if a proposition is true, it retains its identity in any context. But is this always the case?

Let’s examine a practical scenario. Unlike Bitgesell, the money in our bank accounts doesn’t align with this Principle of Identity. Due to inflation, one dollar or euro in September 2024 will not be equal to one dollar or euro in October 2024. Inflation subtly erodes the value of this money, creating the false perception of unity and identity over time.

In contrast, thanks to integrated burns on the blockchain, Bitgesell makes each BGL more valuable over time. Here, the Principle of Identity is strengthened through the asset's appreciation, as Satoshis are burned with every transaction, every mined coin, etc., unlike fiat money or Bitcoin.

Thus, the Principle of Identity in Bitgesell is reinforced: one BGL equals one BGL plus invisible appreciation every hour due to the decreasing supply from small Satoshi burns. The long-term BGL holder benefits by protecting their wealth, potentially increasing the value of their BGL each day without realizing it.

Principle of Non-Contradiction in BGL

The Principle of Non-Contradiction states that no proposition can be both true and false at the same time. In other words, it is impossible for something to both be and not be simultaneously. Simply put, a statement and its negation cannot both be true or false at the same time.

When applied to Bitgesell, a cryptocurrency based on features such as scarcity and the burning of 90% of transaction fees, the Principle of Non-Contradiction can and should be interpreted within an economic and technical context.

Bitgesell follows a limited supply model, currently capped at under 20 million units, inspired by Bitcoin but with some differences. Since the coin has a fixed and decreasing issuance policy for new units, applying the Principle of Non-Contradiction, it cannot be both deflationary (with a decreasing supply) and inflationary (with an increasing supply) at the same time. The fee-burning mechanism strengthens the deflationary trend and this is a clear and consistent feature of the BGL system.

For Bitgesell’s value to increase, there must be a balance between the limited supply and rising demand. Applying the Principle of Non-Contradiction, the supply cannot increase indefinitely without undermining its scarcity, as this contradiction would destroy the deflationary model on which it is based.

In Bitgesell’s blockchain, as in other decentralized cryptocurrencies, consensus is reached by nodes validating transactions. A transaction cannot be both valid and invalid within the system simultaneously. The network maintains consistency in the rules that determine what is accepted in the ledger.

Bitgesell introduces the burning of 90% of transaction fees, reducing the circulating supply. This is a fundamental element of the project. By the Principle of Non-Contradiction, the cryptocurrency cannot simultaneously burn and not burn fees. The deflationary proposition is intrinsically tied to fee burning, which must be maintained to preserve its scarcity.

In an opposite example, traditional money, as we saw above, can be both real in its essence and false in value at the same time, especially as time goes by, contradicting this principle, primarily due to its inflationary nature.

Principle of the Excluded Middle in BGL

The Principle of the Excluded Middle, also formulated in Aristotelian logic, states that for any proposition, it is either true or fals, there is no third option or middle ground. That is, something either is or is not, without the possibility of an intermediate state. In mathematics and logic, this idea translates into a dichotomy: a proposition is either true, or its negation is true.

In Bitgesell's blockchain, as in any consensus-based system, a transaction is either valid or invalid—there is no third possibility. Network consensus is based on the acceptance or rejection of transactions according to predefined rules. Applying the Principle of the Excluded Middle, a Bitgesell transaction cannot be "partially valid" or "partially invalid." It either meets all the established criteria (such as correct signatures, sufficient balance) and is included in the block, or it doesn’t and is rejected.

In Bitgesell, 90% of transaction fees are burned, reducing the circulating supply. According to the Principle of the Excluded Middle, fees are either burned or they are not. There is no intermediate state where part of the fees is burned and part is preserved, bypassing the official policy. The mechanism is binary: fees enter an automatic burn process when the transaction is confirmed, reinforcing the currency’s scarcity.

Bitgesell positions itself as a deflationary cryptocurrency, in contrast to inflationary currencies like traditional money. Following the Principle of the Excluded Middle, the currency cannot be both inflationary and deflationary. Either the number of coins in circulation decreases (due to fee burns and a limited supply), or it increases, as in inflationary systems like the dollar, euro, yuan, ruble, etc. In the case of Bitgesell, the policy is clearly deflationary, excluding the possibility of a continuous supply increase.

Bitgesell adopts an annual halving model, where the mining reward is cut in half each year. In this case, the Principle of the Excluded Middle can be applied to affirm that either the supply is limited and decreasing over time, as the project proposes, or it is not. There is no third option, as the cryptocurrency’s code dictates that the total supply is limited and newly mined coins decrease over time, with no arbitrary expansion of the supply allowed.

In Summary: These principles ensure the consistency and logic of Bitgesell’s functioning as a store of value cryptocurrency.

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