Bitcoin Isn't A Great Financial Tool....YET! 3 Developments I'm bullish about!
Hey Jessietherums
I'm not here to FUD you know I'm a bullish investor and really believe this space is the future but I have to be realistic about the practical use of the product. But How Can We Expect Bitcoin To Rally When It Offers A Poor Service?
A few days ago I purchased some Bitcoin to send to @fullcoverbetting and it took me an 50 mins to receive my fund sending it from a fiat to Bitcoin exchange and then exchanging the BTC via @blocktrades for STEEM so I could send some STEEM to his account.
To simply send him enough cash to buy a beer I had to pay
- Bank Transfer fees - $1.6 (20 mins to clear funds into my exchange wallet)
- Fiat exchange fees - Which they do not disclose (5 mins to purchase my Bitcoin)
- Transfer fees - 0.00014592 BTC (25 mins for it to be transferred to blocktrades and exchanged for steem)
Seems like an unnecessary amount of loops and fees to get into the crypto space, doesn't it?
When we earmark this payment system as a way to do micropayments in an instant its hardly doing its job with these high transaction fees and long processing times, I may as well us a central bank. For Bitcoin or rather cryptocurrency to succeed it cant be a little bit better it needs to be 1000 times better before normies even take a look at it.
The current price I do feel is inflated but I'd say $7500 seems like a fair price fo BTC to hang around at in its current state.
Image source - cointelegraph.com
We need speed & cheap thrills
Until we have a fully deployed lightning network and reduce fees and transaction times we cannot be ready for any sort of full run that even comes close to the previous 20k ATH everyone is holding their breath for.
Could a run of that nature happen as is? Absolutely it can but it would be a bubble of note as was the case with the previous run. If we can have a network that can handle more transaction volumes and lower fees, it will definitely make for an attractive use for the blockchain.
Halfing here we come
The Bitcoin halving is only a few months away and after May next year though, only around 900 new Bitcoin will be added each day, thereby reducing supply dramatically and driving up scarcity. While we think that BTC seems pricy now, wait till you see where we settle once the price spikes happen.
After the halfing, we will probably see people clamouring for BTC as per normal and the price will pump only for it to fall right back down and eventually level off. I'm not sure where the eventual level off number while is, but I'm pretty sure it should be above 10k.
I've been keeping this in mind and stacking as much BTC as I can at these low prices, I still have a few months to collect more and if we do have a crazy run I'll be sure to cash in but at the moment it's all about adding to my Satoshi value.
Atomic Swaps
This is probably the tool I am most excited about and most bullish about which I really think will revolutionize the space and make P2P trading reality and start to marginalise centralised exchanges as well as pushing forward the cause of DEX.
Atomic swaps will allow us to trade different currencies with one another using our wallets. To put it in simple terms, atomic swaps will enable people to directly trade with one another wallet-to-wallet.
If you have Bitcoin and I have Litecoin, we could swap the value agreed on by the market for it without having to visit exchanges or use trading tools, it can all be done inside your wallet.
If we can get this up and running a lot of wealth sitting in wallets can be unlocked and added to the system with so many tokens and coins sitting on exchanges not doing anything can now be converted into an asset class that is frequently traded.
Bitcoin is the gatekeeper
BTC is and will be the entrance for most cryptocurrency users looking to enter and exit the market and having such an over-reliance on once currency to get users into the wider eco-system alts really are at the mercy of its performance.
While I do think there is plenty of room for alts I feel most of them will eventually capitulate and we will see a consolidation in the top currencies as we've seen in the past, the top 100 looks very different from what it did a year or 2 years ago and so it will continue.
I think that if alts are to survive they will need to look at DEX and P2P trading to get more money and holders into the system and bypassing BTC in a sense and creating their own little market for trade.
There is plenty to be excited about when it comes to our beloved gal Bitcoin and for now there are 3 things that should be kept low, a woman's voice, my weight and the price of Bitcoin then I'm a pretty happy chappy!
See you on the other side of the halfing, hopefully, we will all be a lot richer and thinner too!
Have your say
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Some could think I'm crazy, but I still think that BTC goes way above $100,000, or it implodes.
Yeah with the transactions it's really a pain in the ass. But I think the main problem is to still calculate goods in fiat and convert it to crypto. When a lot of people start to reverse it crypto will be in the advantage. Every month I had to pay my servers in Russia in BTC I hoped that BTC is falling, because when it was raising I traveled 100km to a BTC ATM only to figure out that it ran out of BTC. Every time BTC goes up it's really hard to get anonymously BTC. Localbitcoins is also not anymore local, anyway, I dislike them, I was complaining for which purpose they want my ID (while they were still not forced to it). I had a discussion on their forum, where they deleted my messages and kicked my account.
Now I researching for my book were to get in Germany easy anonymous BTC, but it looks like it vanished almost and the majority buys and sells today on bitcoin.de, what is another terrible way, government-controlled and you need a mobile number (from your country of residence).
I think it's time to charge services more in crypto and also purchase more services which accept crypto, solves a lot of problems.
That is also a worry of mine is that exchanges are sitting with too much BTC and we’re still in this mindset that BTC needs to be cashed out to get real world value
We need to work towards having more DEX and P2P trades so we can put, keep and exchange these assets between wallets and not through third parties
I see exchanges as a necessary evil for now, but in future I hopes we do look at ways to migrate away from it
Posted using Partiko iOS
And it's not so that only the exchange is able to steal you, the government of the country of the exchange as well.
Never heard of DEX, does that mean decentralized? Will look it up later. Yepp, and I think soon this P2P needs to work over Tor because the will be also criminalized.
Think it will come soon.
Yes a DEX is a decentralised exchange. It allows for P2P trades and allows you to keep your keys too. I agree that P2P should be used over Tor in some cases but if you're in a network like STEEM we could do P2P too with your account and a VPN @swapsteem has P2P option
cool, thank you for the link :)
Sadly the current Bitcoin fee paradigm exposes a significant failing within the Bitcoin ecosystem – that of accessibility. The failure of a mechanism which requires all transactions regardless of size (or fee) to be executed on a FIFO (first-in/first-out) basis shows an inherent weakness and failing within the ecosystem.
This is why this will imploded if not fixed. bitcoin is bloated because it is all buyers and speculators and not being used as a currency. If little shops that accept bitcoin want to sell a coffee and a sandwich for $7 bucks how’s that going to work with a huge fee of 3 to 10 bucks?
I agree with your analysis of what Bitcoin is right now and surely it won’t be something we can shake any time soon! I feel that HODL’ing is just part of the ecosystem to reward early investors for their faith in the network
Once we reach a point that I hope can where it’s decentralized enough/more wallets and used enough that price drops don’t affect transactions like if we at a 1million dollar bitcoin kinda level
We can for sure reduce payment costs and speed with the help of second layer networks on top of Bitcoin which I think will happen
Yes it’s clunky and not great to use but it’s still better than what we have centrally and building something robust that the whole world can use was never going to be easy
I’m still pretty bullish on BTC and I think it’s got plenty to offer! Let’s see where the next few years take us
Posted using Partiko iOS
Thanks so much! I’m in love with this song and I found a 10 hour version which is perfect for me since I’m hooked on it 😂🙏🏻
LOL that's one epic find, I love the memes too, they're endless -
I also like this video -
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