Bitcoin vs Bitcoin Cash
I will share now my position on the BTC vs BCH rivalry, and what can I say, I am not very optimistic. I have had great visions for Bitcoin that somehow it will save us from the corrupt world we are living in right now. Yet what we are seeing in this rivalry is the same corrupt mafia tactics that goes on in politics. On one side you have a heavily corporate backed "Core" team (note they are the core of a supposedly decentralized community), on the other side you have greedy Chinese miners trying to gain a buck or two extra. Hardly your utopian decentralized community that we have been all dreaming about.
And I really start to doubt the integrity of humanity. First I only thought that corruption only happens in higher positions, that only politicians or businessmen in high corporate positions can get corrupted. But now it's clearer than ever, corruption in in all of us, and we will never have a utopia, because even the most righteous amongst us can be up to no good whenever the circumstances dictate.
Bitcoin
So we had Segwit activated. Everyone was cheering like a sheep. But TX costs didn't went down a single penny:
- TX cost still going up, so fuck Segwit: https://blockchain.info/charts/cost-per-transaction
- 25000 Unconfirmed transactions: https://blockchain.info/unconfirmed-transactions
- And % earned from transaction fees: 17.9%
What the fuck? So are you saying to me that these greedy miners are earning 18% of their revenues from fees alone? I thought the fees would only be a big thing after 2100 when the block reward diminishes and goes away. So we are both paying in inflation and in fees. It starts to look like a Government extortion racket isn't it?
And take a look at /r/Bitcoin it's just full of propaganda and disinformation, it's so obvious that even a child can see it:
Between a few morons posting repetitive childish memes:
- https://www.reddit.com/r/Bitcoin/comments/6wjqg7/miami_knows_whats_up/
- https://www.reddit.com/r/Bitcoin/comments/6wm05u/insanity_wolf_knows_how_to_scale/
You have serious propaganda going on there. If you have read any propaganda book you will quickly identify all the characteristics of it like:
- Massive censorship
- Attack campaign against the competitor using any means possible
- Backing your own propaganda position with leaky arguments and quickly banning any person that points out the obvious fallacies.
- "Rallying behind the flag tactics" - As in you have, probably paid shills, that just spew kind of lousy chearleading bringing all people together with emotional manipulation (like those memes) or provoking anger (like bashing Roger Ver) and then groups attack everyone who dissents from that point of view. So when the shills leave, the others are already indoctrinated to automatically attack any dissenter.
- Character bashing: they are always bashing Gavin Andersen, Mike Hearn, Roger Ver and others. Mostly with fake stuff and lies. It literally looks like a 2 minutes of hate session from 1984
In short it's just a total propaganda operation right in front of your eyes, and if you are not a gullible sheep, you can easily see it.
And I also have my concerns with the fact that the Bitcoin development team is now too close to the corporate/banking system. While I have no problem with businesses, and especially not when they bring money into Bitcoin. I alway had the vision that the development team should remain independent, apolitical, and science oriented.
I really don't want any kind of bullshit corporate tactics getting in front of development, I don't think the two mix, there is just too much risk of corruption.
So it kind of looks like to me like Bitcoin is finished if something is not done about this. Then you have the upcoming Segwit2x proposal. It’s just a giant mess right now, and I don’t see any light at the end of the tunnel.
Bitcoin Cash
So now you would think instantly that converting BTC into BCH is a good idea. Well I don’t think so.
As much as I like Roger Ver and his hard work to expose this kind of corruption in the Bitcoin community. I really don’t trust the new Bitcoin Cash devs. They are unknown people with really not much reputation in the community or anywhere else that I know of. Then there were many bugs in the software in the past, and the website looks like shit.
So I am really not in the mood to put my life savings in such an obviously amateur project, and amateur project that is currently worth 10 billion $. Basically you have 2 guys working on it:
And I also don’t like what is going on behind the scenes with the Chinese mining takeover shenanigans.
You also have hashpower fluctuations and they move back and forth between BTC or BCH so transactions might or might not be confirmed. Certainly not a reliable blockchain. If you are on an exchange you have no idea. I did send a BCH transaction on the blockchain, it took 10 hours to confirm, and it had a fee even higher than BTC. So no thanks.
And then we haven’t even talked about the node problem, how nodes will quickly disappear because the 8mb blockchain will become unbearably large pretty soon.
Conclusion
It’s just a giant mess for both BTC and BCH, and things won’t really get better, it looks like both are doomed in my opinion. On the long term at least, who knows maybe in the shortterm while this euphoria lasts a lot of money can flow into both, but I am already planning on moving into another currency as my main reserve.
I really think BTC is fundamentally flawed, it has many problems that are harder and harder to ignore as the day goes by, because they are not even addressed. From the node count problem, to the mining centralization, to even the fact that the developers can be corrupted and coopted.
I really think BTC is just a prototype at this point, it’s the 1.0 version of the true cryptocurrency that will be both efficient, resilient, and anonymous, since BTC doesn’t provide that.
You know in 1996 when the Internet came out developers faced a choice to either have encryption by default and thus have privacy on the Internet, or to just leave it public, all your data. They choose the latter, and now we have all this surveillance problem.
We should not face the same problem with our money, this is why we need anonymous currency by default. So probably Bitcoin will not fit in here: Dash, Monero, Zcash and things like that might.
Disclaimer: The information provided on this page or blog post might be incorrect, inaccurate or incomplete. I am not responsible if you lose money or other valuables using the information on this page or blog post! This page or blog post is not an investment advice, just my opinion and analysis for educational or entertainment purposes.
Sources:
https://pixabay.com
I think the bad actors are exactly on the other side than you say. How is it possible that after the Segwit2X agreement was signed the fees dropped and the transactions got mined within the first block till the day Segwit was implemented (I experienced it myself ).
This is certainly spam from the big block side. Furthermore Roger pays shills via his special for this occasion designed website (something with 'Bird' where people earn BTC to retweet). Also Segwit doesn't fix the problem immediately, at the moment less than 1% of the transactions are Segwit transactions, wallets and other services need to implement it too.
What do you think is wrong with Segwit? It is running on Litecoin for a while already without any problem and some projects (like bitcoin gambling sites) even mention in their roadmap that it is depending on Segwit activation (this means they NEED it to build their system).
In my opinion Segwit will transform Bitcoin from a payment network to 'the internet of money' because 2nd layers will be able to do everything that altcoins can do now. Here is my suspicion that Roger is corrupt, he is heavily invested in altcoins and exchanges, and 2nd layers on Bitcoin will make them absolete over the long run.
Who is using altcoins if you can make instant, almost free and anonymous transactions and smart contracts and in the future everything you can imagine on the Bitcoin network with the greatest security and infrastructure.
And who is gonna use centralized, hackable exchanges when you can do atomic swap over Lightning network? Exactly, the 2 categories where Roger and other big blokkers are heavily invested in............
There are bad actors on both sides, but this doesn't address the fundamental problem. Even if we leave out the human error, we still have the small block & huge fee vs big block & few nodes problem.
Bitcoin has a fundamental flaw, the nodes dont make any money for their hosting efforts. So you artificially need to keep the blocks low in order to beg the existing nodes to keep hosting BTC. Then you end up with big fees out of which the nodes still dont get a penny.
It's just a giant mess. Dash had solved it, in Dash the nodes get paid too, so big blocks in Dash are not an issue.
Definitely not putting more money into bitcoin for now but I will stay steady with my positions.
The network effect won't go away and we still have a long way to go before bitcoin is truly threatened. Too many coins at an early stage will help bitcoin survive for the foreseeable future.
While I may not agree with everything You've written in this Post...
This is definitely hitting on some VERY Key Issues...
Thank You 4 Sharing Your thoughts & opinions with the ongoing battle...
Well Done PG !!
Cheers !!
Thats a good evaluation. Personally, while people go with the crowd or take sides resulting in some dumping their free bitcoin cash, i'm unbothered; just here to make money. Bitcoin's initial vision was legit but let's face it, nothing is all fun and games, not when money is involved.
Bitcoin was created to transfer money anywhere at bare minimum fee. Bitcoin is however used for everything except that. Bitcoin has grown into an investment business, which isn't all bad but bad nevertheless. Greed is what driving the market and the value of bitcoin upwards. I can't see it any other way. I really thought the value of BTC would surge only after much progress was made in solving in solving the slow and high transaction fees problem. But it seems like this isn't the case. Furthermore, I am yet to see a cryptocurrency with their main goal being to allow anyone to transfer funds quickly, anywhere at low transaction fees while trying to maintaining or attempting to control volatility. The hope of the masses is always for the currency to , as they say, go to the moon!. Greed greed greed! Everyone wants to be rich but they never see the big picture. Soon visa and the big banks will apply the blockchain to their system, and we will have accomplished nothing. We will be stuck with a centralised system forever. Humans do not even know what is good for them!
Romans 3:10 As it is written, There is none righteous, no, not one KJV
Crypto-currency appears to be the future one world monetary system. It seems like a good idea and that it will lead the world to financial freedom, and in the short term it probably will for some. But in reality it will very likely do just the opposite in the long term. The day will come when all monetary transactions are monitored and controlled by some world government agency. It will all be for our good you see, private thefts and the funding of unlawful terror groups will be almost non existent. But State sponsored theft through taxes and extortion will become rampant, and the State controlled enforcers will make the terrorists of our day look like a kindergarten group at play. JMHO
Yes I have already talked about this possibility, tyranny can come in any form.
But we have to remember that it;s just a tool. It can be used for anything we want. It's human nature to blame for it, just as a knife can be used to cut bread or to murder people. It's not the object's fault.
Cryptocurrency may not have this dire fate if we make it right this time, and start using anonymous cryptocurrencies.
Thus the reason I'm here, the idea is good and the possibility that it could be used for the good of the world is certainly there and inherent in the technology. As you pointed out so well in your blog, it is human nature that becomes the problem and the great stumbling block. I appreciate you for posting your thoughts on the subject, and concerning the parts that I can readily understand I'm in total agreement with you. Sorry, I'm still in the learning process when it comes to every aspect of the operation and mechanism for cryptocurrency and the blockchain but I'm getting there.
Whenever there is money there will always be corruption.
Yes but the problem is that it;s our money at stake. Whenever there is authority there is corruption should be a better statement.
And it looks like Bitcoin is not decentralized enough. I mean they literally call themselves Bitcoin "Core" as if they are the Gods of Bitcoin, and their words are holy.
And thats what I meant to too. The higher their authority is, same goes with corruption.
The desire of nakamoto financial freedom for all seems to fall on this high authorities. Its not for everybody after all because as long as there is this thing called "greed", there's always this imbalance.
Good insight, we are starting to see a lot of corporate entities getting in on the Bitcoin and crypto wave. I don't see how this will be a good thing in the long term but still have hope for similar decentralized systems in the future.
For now they are useful, they bring in a lot of capital, investors and popularize Bitcoin and the entire crypto movement, not to mention they can lobby the Government on our behalf.
I am not sure about the long term though.
For now BTC is still king. Time will tell if it will remain as king of the hill in the crypto world. Thanks for sharing your thoughts, great post.
Great information for a newbie like me. Thank you for sharing.
Great points and ones that few want to touch upon.
While I am not as pessimistic long term, I do think many of the challenges brought up can be over come, I think there is a long bumpy road ahead. To get there, we might need to see a culling out of some of the major hecklers involved at this point.
I am not saying the danger is imminent, but I am already starting to look into alternatives if or when Bitcoin might suffer a disaster or becomes useless due to high fees.
Agreed....it is only prudent.
I have ltc and eth also in my basket.
I, too, am monitoring how things go....never got in on BCH so I avoided that one if it does go south.
You already have BCH if you owned BTC before the fork happened. Did you knew that?
I didnt.
Well then you should redeem your BCH or basically do whatever you want with it, they are on the same Bitcoin address you have had your BTC on, the same private key controls BCH too, it's just that you need to import it into a Bitcoin Cash wallet.
Check your balance here:
https://blockchair.com/