BECOMING RICH - EP. 38. - Bitcoin Cash
Bitcoin Core as it is is finished in my opinion, it’s toasted, the Core team has successfully made it unusable, slow and unnecessarily complicated piece of software so I have from this day stopped using BTC, and I have transitioned to Bitcoin Cash (BCH).
As of today Jan 20, I have converted my last remaining Bitcoins into BCH, thankfully the last pieces were on an exchange so I got spared the enormous TX fees.
Unfortunately I had some BTC on a hardware wallet a month ago or so which I had to send to an exchange, and that cost me almost 30$ to send it, it’s unbearable, I’d rather just use Paypal or whatever, it’s ridiculous.
As of today I only accept BCH and ETH for business transactions or main storage of wealth basically. I already made some posts about BCH and how to use the BCH wallets, more will come later….
It’s funny though, shills are against ETH, while ETH has some problems with it’s “Turing Complete” nonsense theory, from a price and technology standpoint, it’s OK in my book. It’s fast, usable, and it’s price is very appealing. I have no problem in transacting in ETH, given that it has a good and smooth wallet service for it like MyEtherWallet, and it’s actually usable as money for goods and services.
So ETH is probably closer to money as it is. But the true replacement for Bitcoin is Bitcoin Cash, that is not even up to debate.
The mining power and economic web that already exists on top of Bitcoin, can just transition to Bitcoin Cash, much easier than ETH or other coins.
It makes no sense to transition to another crypto, since the BTC code is still the safest and simplest. All other coins have a lot of bloated, insecure and non-reviewed technology incorporate in it.
So I’d consider BCH as a main storage of wealth, period. ETH is second to that due to it’s majority, however I have some concerns about it’s code security (especially after the DAO fiasco).
I also have some DASH and MONERO, but I don’t think they are ready yet, too little userbase, so at this point it’s risky to call them money.
DASH has a lot of potential in it, I’ve said on the forum that if it’s going to be a crypto fight, it will probably be between DASH vs BCH, in terms of popularity and calling it actual money.
But due to some concerns with DASH’s masternode system, which I have talked about, it’s still BCH that is my choice.
So my main currency choice is BCH at this point, in my opinion, BCH might replace BTC pretty soon, and then a lot of money will flow into BCH making it an excellent investment in my opinion.
However I’d not sell my STEEM for it. Interestingly, I think the potential of STEEM is even bigger than BCH.
So converting STEEM into BCH is foolish at this point in my opinion. However I’d convert all BTC into BCH, and even phase out a little bit from ETH into BCH.
So basically if Joe has 10 BTC and 100 ETH, he should swap the 10 BTC into BCH, and about 60-70% of the ETH into BCH as well, in my opinion.
The ETH market might go up, but the ICO madness has to end at some point, at which the market will need stability, and only BCH can provide that (or USD).
So BCH is the only stable currency at some point, but I’d not trade my STEEM for it, but only my BTC and some ETH in my opinion.
Also I’d not use TETHER for a proxy for the USD, this post came out recently:
(Not to mention what happened to the Liberty Reserve, the regulators don’t like dollar substitutes)
So either swap back to USD (in my case EUR), or keep BCH is my strategy, for the larger part of the portfolio.
While keeping investments in STEEM, MONERO, DASH, ETHEREUM, AMP, VERI, and so on….
That is my financial roadplan for Q1 2018 basically, and then we shall see what happens….
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To what extent do you suspect these cryptos might fade away Friendster and MySpace style?
Eventually, but not that quickly, Bitcoin itself could fade away, I mean the TX fees are ridiculous, most Earthlings make about net 250$/ month, and the TX fee is now approaching 40$, it's not going mainstream.
Bitcoin Cash is the real deal, but it will take some time until the economic essence transitions, although it's not that hard since it's basically the same protocol, we already see many payment processors, vendors and exchanges switching to BCH.
No consideration for Litecoin as a BTC/BCH competitor? And what about EOS vs Ethereum?
Nope, Litecoin is just a cheap Chinese copy of Bitcoin ( sorry if that sounds racist, no racism intended).
Whatever problems BTC has, LTC has them, plus it's barely being adopted.
LTC has literally no use case, especially now with DASH and BCH coming to the scene, it will probably fade away in my opinion.
I haven't really looked into EOS, Dan is a great guy, I am sure he will deliver, but I don't know to what extent it will disrupt ETH.
ETH already has a large userbase and economic essence via it's tokens, I don't think many of them will transition over, it would be too costly.
Whatever ETH has it will keep, so even if EOS is far superior, I don't think it will disrupt ETH.
Just as Linux hasn't disrupted Windows despite being far superior in every way, the money doesn't move that quickly.
If only Linux would become the killer game platform.
Then, winders would be toast.
But, never the less, the charts on LTC show a breakout very near. And they keep hinting at releasing news. If it is anything good, then it will have a huge run up. (and maybe by the time LTC starts hitting the BTC wall, the BTC core group will have worked out the bugs, then just plug and play into LTC)
Yeah that is the only problem with Linux, games don't work.
But I bet most computer users are not gamers, I mean certainly most adults are not.
So even if you do business on the computer with spreadsheets, there is literally no reason to not use GPL license based products with Linux. There is no need to purchase there corporate software, full of bugs and spyware usually, when you can have just as good quality safe software for free.
Some games work on Linux, I think pre 2007 all games work through Wine emulator.
I once let myself into temptation and installed 80's console games on my PC, you know the older console games, Atari/Nintendo, you name it.
I used to grow up on that crap in the late 80's early 90's. They had worked just fine, so I had a moment of nostalgia.
As for these modern gamers who play video games all day, well I feel sorry for them, they should do something more productive.
Although nowadays people play on Xbox-es, so the PC is mainly reserved for work not play, and in that case Linux is just fine.
BTC ... I have listened to them, and they have a good idea. All cryptos are going to need to be massively scaled. And, I am glad they are working on it. However, they could have just done 2MB blocks and gave themselves breathing room while continuing to work on their high ideas.
BTC will go to $1,000,000... but, will that be a larger gain than BCH, LTC, Dash or STEEM?
Well, this is capitalism. This is where you put your crypto value where you mouth is.
My favored future technology is such that you can give someone a paper wallet, in such a way that you no longer have it. (and your old copy is no longer good) Such as you wrap the crypto in a old key/new key wrapper.
See this is the ridiculous part. Bitcoin Cash could just as easily implement LN if they want too.
The point is that they might optionally, but not mandatory. They don't force you to use LN, althought there might be a conflict of interest between LN nodes and regular nodes.
So the transaction space in the blockchain has to be guaranteed, if you force people into payment processors, then you killed the spirit of BTC.
In some cases LN might work, for faucets and minigames, usually processes that are automated, since they use up a lot of blockspace. But regular transactions should be included in the blockchain, otherwise you can't guarantee decentralization.
Bitcoin Cash is superior in every way, they can do everything that BTC can, plus more, and it's actually cheaper and faster, they have been working on very fast network propagation tech, so it will be interesting to see that.
I think that's ridiculous, BTC won't go anywhere near 30,000$ in my opinion. I have already underestimated BTC I said a few months ago that it wont even reach 10,000$, I was wrong, but only on the timing.
Regulators simply won't let it, the EU is already nervous about BTC, the globalists don't like it.
They will just start issuing new regulation to BTC businesses, and that will result in a massive crash once they find out that most exchanges are possiblu running fractional reserve schemes, a lot of confiscations could happen.
I don't think it will be 2018, but before 2020 we could see a major shakedownn coming from the regulators.
Only the honest coins will survive. Definitely the ETH ICO's will get a lot of heat.
BTC will break $40,000 before summer. It currently has all the name recognition, and as we start to enter the early adopter phase, there will be a lot of money seeking bitcoins. But, that is only a 300% move.
As you said, its a popularity contest, not about which coin is better. For putting all your retirement funds into, bitcoins creeping transaction speeds are juuuuust fine.
So, BTC will get a lot of people in, just for the safety of not being fiat and its name brand. Its a savings account.
More use cases are what is needed and will fund the NEXT big rise in cryptos. This is not a technical problem, this is a people problem. People have to learn to pay in BCH, and businesses have to learn how to handle wallets. (Waiting for that enterprise level wallet system. With multiple hardware keys and stuff)
When that happens, BTC will be left in the dust, but, a miracle could happen, BTC could get their shit actually worked out.
The biggest thing to remember, its all code. And BTC, BCH and LTC could all go to the same code base tomorrow. If some developer performs a super-super-sayan-genius move.
The risk is massive, since they can't send out the money, all of it will be on exchanges.
It will only take 1 massive hack to make the castle of cards collapse.
There are millions of talented Chinese and Russian hackers working around the clock to make that happen.
I think the risk is massive, I'd stay away from coins which have a very centralized custodianship, the theft risk there is massive.
You should look into hashgraphs, it could be an evolution to blockchain.
https://hashgraph.com
Hashgraph won't work. The limitations in its structure are such that it will kill it.
But, its sales pitch is awesome. And, something that sounds the same as the sales pitch will definitely be the future of block chains.
But it won't be hashgraph, because the problem is inherent in its logic.
But, but, someone will find another way to make the intention work.
There will come a way of forking a blockchain and then recombining the chains.
That is going to be mind blowing stuff
Look I don't know the technical sides of it, but I am sure the current structure of the blockchain can be upgraded. There are already logical holes in the blockchain strucutre.
Like the fact that transactions remain permanently stored, I don't think that is logical. I think a transaction once is no longer holding any reference coins should be discarded.
There should be a way to do that. Again I am not tech expert but it seems illogical to me.
The importance of everything is decaying exponentially as time moves on, thus old transaction should be able to be deleted, without impacting on the integrity of the chain:
Somebody smart will figure that out in the future.
I once argued with Dan over this very thing.
However, this is just a nicety. And you can get compressed snapshots of the blockchain and start from there. The block-chain doesn't have any logical flaws. It has a few execution flaws and there are some things we would like for it to do better.
Hashgraph has a logical flaw where you can end up with part of the network thinking one thing, and another part thinking another. So, although hashgraph has a lot of better features, it isn't even in the running yet.
No doubt someone will come along and say, hey, why don't we do this... and the programming community will collectively smack their foreheads, and say, why didn't we think of that.