Bitcoin Update: Divide and Conquer Theory
While observing the chess game between Chinese miners and Bitcoin core developers I've noticed that the advocates of mining centralization might follow a very smart plan.
It's called divide and conquer.
From wiki:
Divide and conquer: gaining and maintaining power by breaking up larger concentrations of power into pieces that individually have less power than the one implementing the strategy.
Now it's just my theory but consider this:
- Bitman, the largest Chinese Bitcoin miner and mining equipment producer controls Bitcoin Cash - both mining and source code.
- Bitman controls also SegWit2x source code (via btc1).
Currently Bitcoin is upgrading to incorporate SegWit - a backward compatible change in Bitcoin protocol that will allow to it to support new technologies on top of "classic" BTC.
While SegWit is a technology created and tested over 2 years ago, the Chinese miners decided to support SegWit2x - a hard fork, not backward compatible.
Currently Bitmain is fighting with Bitcoin Core - a community of over 100 devs that created SegWit and that look after the Bitcoin code. They are quite conservative, they take their time when implementing new features to the Bitcoin protocol as it seems that safety and stability is their #1 priority.
Bitcoin Core devs are against bigger blocks in Bitcoin as they believe it leads to mining centralization. I believe that this is the reason why Bitman wants to remove Bitcoin Core developers. How? As the title states:
Stage 1 - pump Bitcoin Cash to make it look attractive to investors and to show that it's not gonna end like many of its predecessors (bitcoin unlimited, bitcoin XT, bitcoin classic).
Stage 2 - cause as much FUD (fear, uncertainty, doubt) in Bitcoin as possible by supporting SegWit2x hard fork - which will divide the community and cause price drop.
Stage 3 - present the Bitcoin Cash as the one and only Bitcoin - and continue to control it 100%.
In case you're wondering - 90% of Bitcoin Cash blocks of were mined by one, unknown miner. He can basically do whatever he wants with all Bcash coins.
source: https://cash.coin.dance/block
In my opinion on November we're gonna have a really big battle in the war that I wrote about four weeks ago. Chinese miners and friends vs Bitcoin Core and the community that support their decentralized vision. Let's hope it's the last one.
"Currently Bitmain is fighting with Bitcoin Core - a community of over 100 devs that created SegWit and that look after the Bitcoin code. They are quite conservative, they take their time when implementing new features to the Bitcoin protocol as it seems that safety and stability is their #1 priority."
You have been absolutely co-opted by propaganda.
Start here to undo the damage:
https://steemit.com/bitcoin/@lexiconical/seg-wit-is-a-trojan-horse-bitcoin-scaling-debate-explained
https://steemit.com/bitcoin/@lexiconical/bitcoin-scaling-s-western-front-of-propaganda-outsider-s-guide-to-the-bitcoin-subreddits
Bitcoin Core are the clear and obvious enemy, and anyone who can't see that after reviewing the facts is a propaganda shill.
SegWitCoin is not Bitcoin by definition.
"Bitcoin Core devs are against bigger blocks in Bitcoin as they believe it leads to
mining centralization.their mainstream banking system buddies like Blockstream/AXA being less able to manipulate and destroy cryptocurrency for their own personal profit"FTFY.
Oh look, it's that comment again... Anyway thank you for your opinion.
Can you tell me how bigger blocks do not need more time to be propagated in the network? And what happens if smaller nodes can't receive it on time (tip: they got cut out)? And why it wouldn't concentrate more and more power in the bigger and bigger nodes?
PS. Previously my comments were flagged and hidden by big blockers here, rest assured that you are free to speak whatever you want here, no censorship :)
Ah, well, I certainly didn't flag you.
I won't argue that big blocks are faster than small blocks in propagation, but they do massively increase the amount of processed transactions.
I don't really know what else to say in this debate. 1MB was a temporary setting when computers were 7 years slower. Satoshi specifically said it should be raised, and it's pretty clear he meant "long before fees got to be $3+". Increasing the block size right now does not make the blockchain unmanageable, but it does prevent off-chain transactions from becoming a thing.
Large blocks would drastically lower mining fees, so it's hard to point at a mining conspiracy here IMO.
I think it's more about internet speed than computers not being fast enough / storage space. But yeah, I get the argument about pushing transactions of the chain. I often read that there's no reason to store your coffee purchase forever on blockchain on every node.
Honestly, I don't think Bitcoin was ever really intended for things like coffee purchases. There's not all that much trust needed at Starbucks.
Yeah, that's the two ways of looking at btc - as a store of value or as a currency too.
I always thought of it more like digital gold that had solved the transaction problem for everything like...$10-$100 and up, depending on your viewpoint and tolerance for fees.
It totally eliminated bank counterparty risk and reduced wire fees by 90-99%.
It's much less good at small, fast transactions that require near-instant confirmation.
Great job explaining.
Every Bitcoin crisis makes him stronger! There were so many Bitcoin rivals and still he is the King.
Great perspective and a very detailed one too. November will be a gold mine for me though.
I wish bitcoin would stay relativity stable, as a trader who uses bitcoin as his base currency to trade, these events cause major price fluctuations which can negatively impact my trading. I too wonder what November will bring. Thanks
Nice analysis. I think come mid-Oct / Nov we'll see the next BTC downturn over the FUD. I continue to hold BCH as an insurance policy.
yep, seems the best option although often when bitcoin is going down, all cryptos are going down :)
True, I'm thinking at some point all the cryptos won't trade in the same direction. But we'll see.
Love your article thank you for the tip and helping me understand more inside the world of Bitcoin and Bitcoin cash!
Please remember that it's just my opinion and I may be missing many elements in the puzzle :)
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sound good for alt and other coins and like there will be some volatility in bitcoin .... all sound profitable for the traders