Wikicoin George Shnurenko

Bitcoin Cash Price Prediction 2018\20\25: BCH Forecast

📚 Wikicoin
Is this altcoin promising enough to invest in it?
Bitcoin Cash Price Prediction 2018\20\25: BCH Forecast

Bitcoin Cash is gaining its value not only due to its parent Bitcoin cryptocurrency. Investors start realizing that it's one of the most convenient ways to pay with crypto and withdraw the virtual assets. Is this altcoin promising enough to invest in it? Let's read Bitcoin Cash prediction to find this out.

Is Bitcoin Cash much different from Bitcoin?

Although Bitcoin continues its reigning on the cryptocurrency market, it’s far not the best coin from the technological standpoint. The number of transactions it can process is only seven per second– this is too slow. For reference: Visa processes transactions at the rate of 1,700 per second having the capability to process over 24,000 transactions per second.

Due to an increasing popularity of Bitcoin, people started mining it hardly and the mining pools gave about 80-90 percent of their power for BTC mining. That required a lot of energy and room for storing data.

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Advantages of Bitcoin Cash

In July 2017, the Bitcoin community voted for the introduction of SegWit2x technology– it minifies the volume of blocks to be mined by removing signature data. However, the size of the blocks still continues increasing, and now the blocks can weigh even one GB and more. Of course, that slows down the mining process and makes it less efficient.

Understanding that, miners and developers have introduced a hard fork of Bitcoin– Bitcoin Cash.

It has optimal block sizes (eight MB against one MB in BTC which boosts safety) and ensures a great speed of the verification process.

How has Bitcoin been improved?

In other words, Bitcoin Cash is a better version of Bitcoin. So what’s changed?

                            Bitcoin

                                        Bitcoin Cash

A standard block is one MB maximum.

Uses power blocks of eight MB maximum.

Uses SegWit– the signatures can be discarded from the Blockchain.

SecureSigns– signatures must be secured and validated on the Blockchain.

It has been developed by one centralized team. Bitcoin Core is the only implementation.

Has been developed by several teams and features several client implementations (Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited, etc).

Off-chain payment channels.

On-chain transactions and increasing for block size.

About Bitcoin Cash price prediction 2017

Just like its parent coin, Bitcoin Cash experienced an exponential boost in growth in 2017. Justifying the major community’s prediction Bitcoin Cash has started quickly making its way to the top and managed to reach important cost milestones. The coin was launched at the price of $250, and the next day, it already cost $651 per coin! In the middle of the month, it already cost $900.

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How Bitcoin Cash price changed in 2017

Of course, its development has been accompanied by hot debates over what’s better– the original of the ‘affiliate’ coin. The value of Bitcoin cash started falling when people realized that the fork is not a versatile answer to the problem of BTC scaling. Although it gained the maximum of $2,442, Bitcoin Cash price prediction for further months wasn’t justified– like all other coins, it started falling at the beginning of 2018.

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Bitcoin Cash prediction 2018

Different sources provide us with different Bitcoin Cash 2018 prediction:

  • According to technical analysis (cost estimated is done by software based on the price trends and trade volume), within a year, the coin can raise to $2,363.42 doubling in its value. So if you invest $100 in Bitcoin Cash, you can earn $211 within a year. That’s what Walletinvestor.com claims.

  • Alternatively, tradingbeasts.com says that Bitcoin cash can grow to $1,930–$2,838 in December 2018. That’s almost the same Bitcoin cash price prediction 2018.

  • Roger Ver, one of Bitcoin millionaires, says that the currency will continue its growth, and Bitcoin Cash will double its price in the coming months due to simplicity and convenience of use.

  • A less reliable but popular smartereum.com predicts 500 percent growth of BCH cash– the cost can grow to $6,700 within less than a year!

  • Similarly, profitconfidential.com claims that Bitcoin Cash will reach the price of $7,000 by the end of 2018.

As we see, most Bitcoin Cash 2018 price predictions are optimistic, and traders see it as a better Bitcoin alternative that brings about a lot of benefits, including fast transactions and low fees.

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Bitcoin Cash prediction 2020

When looking for 2020 Bitcoin Cash price prediction today, we can see that most sources provide almost the same information:

  • Tradingbeasts.com predicts that Bitcoin cash will cost from $4,037 to $5,937 by the end of 2020.

  • Brian Kelly, a cryptocurrency expert, didn’t mention any certain numbers but said that this is one of the most promising coins that every smart trader should buy.

  • priceprediction.co claims that by the end of 2020, Bitcoin Cash price will grow to $9,562.28.

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Bitcoin Cash long term prediction

When it comes to Bitcoin Cash five-year prediction, there are not so many opinions regarding it. According to Walletinvestor.com, the price of Bitcoin Cash will rise to $7520.50, which means the growth of 572 percent- that seems to make sense.

If we look in smartereum.com Bitcoin Cash price chart prediction, we’ll see that Bitcoin Cash can raise to  $24,600 within five years. That seems to be too optimistic. With such a high volatility, it’s hard to make any predictions– price movements are sudden.

What can affect the coin value?

There’s a myriad of factors influencing the Bitcoin Cash prediction: Reddit users have shared their opinions and claimed that the development of Bitcoin cash can be affected by the following things.

  • The dominance of Bitcoin.

  • Other advanced altcoins.

  • Poor adoption of technology.

  • Centralization of mining.

Should I invest in Bitcoin Cash?

Bitcoin Cash prediction today is not just optimistic– it seems to be close to reality. Besides, considering the current Bitcoin Cash prediction flip, the forecasts are expected to be justified pretty soon. Therefore, if you’re still in the dark about Bitcoin Cash and want to make your first investment, it’s high time to do it now– you can surely double the sum within a year.

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📈 Pricewise Andrew Strogoff

Bitcoin, Ethereum, Ripple, EOS, NEM at Bearish Targets, U-Turn Nears: Price Analysis, July 13

Pricewise
Bitcoin and its rivals almost reached their lows, but U-turn is close
Bitcoin, Ethereum, Ripple, EOS, NEM at Bearish Targets, U-Turn Nears: Price Analysis, July 13

The cryptos from the top 20 developed their bearish tendencies and reached our targets that we have set previously. However, sellers are unable to push currencies lower and we can see that the major cryptos are ready for U-turn.

The majority of coins have almost reached their June lows, where huge support lies. However, sellers have no power to develop their progress as the prices retreated from there, staring a correction.

As for the interesting news, there are a couple of things we want to mention. The first one comes from China. The Yuan is no longer the major player in the cryptocurrency market as its volumes declined from 90 to one percent. However, this does not mean that Chinese traders and investors are no longer important players on the cryptomarket. They choose other ways to buy and sell cryptocurrencies.

Another interesting fact comes from the Bancor exchange, which is operational again after a pause, related to a hacker attack. They have already reached a $2.5 mln per day volume. However, the local coin still fails to reverse its tendency and remains red.

Bitcoin (BTC/USD) price analysis, July 13

The currency pair went downwards according to the bearish scenario but failed to reach June lows and makes a U-turn currently. Bitcoin losses for the last 24 hours are non-significant and BTC/USD shows signs of a correction.

BTC/USD 4H Chart

Bitcoin has successfully broken through the support area at $6,329 in the past couple of days and moved lower. The currency pair reached $6,071 support area but BTC price retreated from there showing that bulls have prepared a very strong defensive line there.

There are no signals from price action neither from graphic patterns currently but we think that Bitcoin is going to start an upside correction at least which is able to become an uptrend in the future. The closest target for the growth is at $6,329. We think that BTC/USD aims at $6,510 in the next couple of days.

There is an alternative scenario as well, which is less probable at the moment. Bitcoin will test the support area at $6,071 and if successful, bears will push it lower.

Ethereum (ETH/USD) price analysis, July 13

Bears were trying to develop their progress in the past couple of days but had not enough power to do it. ETH price remained almost unchanged in the past 24 hours meaning the bulls have built a strong support line there.

ETH/USD 4H Chart

Ethereum reached the support area at $417.28 but retreated from there. ETH price returned above the $31.42 line. The bearish flag worked, but we think that ETH/USD is going to start a correction in the nearest future.

We can see a bullish hammer on the four-hour chart and this is a strong signal. We think that ETH/USD is going to develop its upside tendency targeting the next resistance area at $453.24 at least. If bulls are successful, they will be able to develop their progress even higher.

A bearish scenario is less probable. However, let’s see what the sellers can do. Their first target is at the $417.28 support line. The next one lies lower at June lows.

Ripple (XRP/USD) price analysis, July 13

Ripple reached June lows and makes a U-turn there. The currency pair has lost less than one percent in the past 24 hours as its downside tendency slows down significantly. We think that bulls are now in the game and they are going to develop this upside correction in the nearest future.

XRP/USD 4H Chart

Ripple has reached the support area at $0.4232, but bullish defensive lines were strong and the price retreated from there. Bulls are taking control over the market and drive the currency pair towards the resistance area at $0.4495.

There is no price action nor pattern signals, but it is almost clear that the buyers are going to test the resistance at $0.4495 in the nearest future and will target the next resistance at $0.4744 at least.

As for the alternative scenario, bears will be able to retest the support area at $0.4232 and push the currency pair lower. However, this one is less probable.

EOS (EOS/USD) price analysis, July 13

EOS reached June lows but retreated from there as bulls have built strong support line. The currency pair seems to start a correction currently. EOS/USD has added more than two percent in the past 24 hours.

EOS/USD 4H Chart

The currency pair tested the support area at $6.65 but failed to decline lower. EOS reversed and moved higher. The currency pair managed to jump over the resistance area at $7.10 where it fluctuates currently.

We think that EOS has all chances to develop its growth in short-term targeting the next resistance area at $7.65 at least. If buyers are successful there, they will be able to drive it even higher.

An alternative scenario is less probable, but if bears will regain control over the market, they will be able to push the currency pair even lower.

NEM (XEM/USD) price analysis, July 13

The currency pair reached another support area and stopped there. XEM/USD seems to start an upside correction. NEM has lost more than four percent in the past 24 hours but bears are out of power to push it lower.

XEM/USD 4H Chart

XEM/USD tested the support area at $0.1539 and retreated from there. XEM price has formed a bullish hammer and seems to target the next resistance area at $0.1682 at least. We think that there lies the first target for NEM.

The second tier is higher at the next resistance area at $0.1873. As for the bearish scenario, it is less probable but sellers can retest the support area at $0.1539.

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Everything As a Service Without a Clear Roadmap: Past-ICO Review

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Lots of hype but little info, Bankex had a great ICO, but what is there to show
Everything As a Service Without a Clear Roadmap: Past-ICO Review

Bankex is an organization that unites members of the financial markets in order to build a community and implements the Proof-of-Asset Protocol that enables the community members to profit from the mutual use of assets. Furthermore, it allows for the tokenization of other assets, like many other coins promise.

Financials

In a one-month ICO token sale from Nov. 28 to Dec. 28, 2017, Bankex raised a whopping $70 mln! Its token (BKS) entered the market on Jan. 23, 2018 at $2.82 and has been in decline ever since its launch into the market.

It is currently down to $0.18, losing 93 percent of its initial value over the past eight months. While it has a relatively high trade volume, $1.2 mln per day, its market cap has taken a plunge by 80 percent to $14 mln a fall from the initially raised funds of $70 mln.

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Barebone website

While reviewing the website, it was hard to find information that most companies make very accessible, such as who is on the team.  

Constantine Kurbatoff- CEO

Kurbatoff has previously been involved with founding other companies in the US, Luxembourg, Russia and Israel. He has a BA in computer sciences.

Denis Khoruzhiy- CTO, Blockchain Analyst

Previously an associate professor in radiophysics at Volgograd University for almost 10 years, he left academia to join the corporate world when he became the CTO at wired and then ID East for 10 years. He has been at Bankex for one year now.

Dmitry Dolgov- COO

Previously, Dolgov has been CEO of several other technology companies before coming on as COO at Bankex. He has been with Bankex for 2.5 years.

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Everything as a service (EaaS)

Nowadays, the -aaS acronym is very popular and just about everyone tries to market their products as a service.

Bankex is offering, you guessed it, Banking as a Service or BaaS. BaaS is a business model that allows building new financial products integrated with numerous existing technological solutions and jurisdictions.

That is, this is a single window that a corporate or retail end customer addresses, selects and receives services that are provided by different banks and technology companies and in different countries.

This platform takes on the solution to the problem of technical and legal connection of various players in the financial market.

Lots of hype little info

It appears to be that there is a lot of hype about this company, but little concrete information about the company or the services it provides on the website and in general. Without a proper explanation from on the website, it is hard to tell what is actually going on with the project.

To try and fill the gaps, we reached out to the company to try to learn more but were met with silence.

It’s funny, you have got media inquiring about your project and you don’t want to reply; it does not speak well about the company. Silence isn’t golden when you are a Blockchain-based company trying to make a name for yourself; silence is deadly.  

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Why Does Bitcoin Have Any Value?

📚 Wikicoin
Some naysayers believe that Bitcoin doesn’t have any value since it’s “just data,” but they seem to forget that we live in the era of digitalization
Why Does Bitcoin Have Any Value?

Back in 2013, when a famed American economist Paul Krugman wrote his infamous op-ed article “Bitcoin Is Evil” for the New York Times, it sparked a debate about whether Bitcoin has any value. In 2018, he wrote another article entitled “Bubble, Bubble, Fraud and Trouble” which states that Bitcoin fell by over 40 percent in merely weeks. Therefore, let’s figure out why Bitcoin has any value and what major factors determine it.

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Economics 101

So, why does Bitcoin have value? In order to determine why anything is valuable, it’s worth mentioning such basic economic terms as utility and scarcity. If there is something that is not commonly found (and it can be useful), it will create demand for this specific product, which would eventually push its price.

Gold, the best performing asset of the 21st century, is probably a textbook example of a valuable product since it has high scarcity (gold is not the rarest metal, but it is still hard to find and extract) and, yes, it is shiny, which drives consumer satisfaction.  

Bitcoin scarcity

It’s now clear that anything that has any value should check the following two boxes (scarcity and utility). Bitcoin naysayers claim that Bitcoin doesn’t have any value, but they are almost certainly wrong. Bitcoin has a fixed supply of 21 mln coins. In fact, Bitcoin seems to be the most desirable asset. If compared to gold, there won’t be another gold rush, which would enhance its supply and the market crash.

“There are potentially millions of times more gold underground than actually has been extracted," said Fundstrat’s Tom Lee.

Bitcoin scarcity

Bitcoin utility

Once we’ve figured out that Bitcoin is actually scarce, let’s get down to Bitcoin’s utility. Of course, Bitcoin’s utility lies in its decentralized nature since not a single person can preside over the network, unlike centralized banking institutions. Another important feature of Bitcoin is that it can be used for making practically any kinds of transactions– from buying candies to purchasing real estate since the coin is trivially divisible. Earlier, U.Today reported about Australian homeowners selling their houses for Bitcoin.

However, now we get down to another popular talking point of Bitcoin critics who claim that Bitcoin doesn’t have intrinsic value. Yes, gold is shiny and appealing to people who want to feel the sense of wealth, but one should not forget that it is also a metal that is commonly used in numerous industries (dentistry, electronic and so on). On top of that, some individuals assume that paper money has intrinsic value as well because you can do plenty of things with banknotes (kindling, making notes and so on). However, if you dig deeper, you will realize that jewelry accounts for more than 50 percent of global gold demand, according to the statistical data provided by the World Gold Council. Meanwhile, barely 15 percent of gold is used in other industries, including electronics and dentistry.

Bitcoin utility

As U.Today reported earlier, Krugman, a vocal Bitcoin skeptic, said that Bitcoin may overtake gold since he thinks that the former has much more potential in the long run.   

It gets even worse when with paper money. The Federal Reserve states that it takes only 13.2 cents to produce a $100 bill, which represents the intrinsic value of this banknote. The remaining $99.87 depending on how much trust people put in the US dollar.

Bitcoin utility

Global IT behemoths in the likes of Facebook, Apple and other companies purely rely on digital trust. Not long time ago, one wouldn’t believe that Amazon could be worth more than $1 tln.

Bitcoin is not wealth

Many people fail to understand the concept of Bitcoin because they have no idea how money works. Money just serves as a facilitator for exchanging wealth, but it does not have any value per se. People do not actually like digital coins or paper banknotes– people like things that they can buy with them.

What gives Bitcoin value? Yes, Bitcoin is just data, but that’s all money is about– transferring information. At the same time, Bitcoin has numerous advantages over ordinarily fiat currencies because of its decentralized nature:

  1. It eliminates the possibility of inflation since a centralized body cannot control the issuance of the coins.

  2. Your bank account cannot be frozen. Earlier, UK cycling merchant complained that his private and business bank accounts had been suspended due to the fact that he would engage in cryptocurrency trading.     

  3. Bitcoin is not the first decentralized currency since we already have gold, but physical gold is extremely inefficient in making day-to-day transactions.

Bitcoin is unique in a sense that this is the first digital currency that is not issued by a centralized governing body. As mentioned above, Bitcoin is rarer than gold because of its finite supply. On top of that, the flagship currency offers more flexibility and privacy than modern banking systems.   

Where does Bitcoin get its value? Once we have already figured out that Bitcoin does have value, it is essential to figure out what exactly determined it. It is worth mentioning that Bitcoin value shouldn’t be confused with Bitcoin price (the momentary cost of the currency). Bitcoin value can be:

  • scientific (Bitcoin’s creator Satoshi Nakamoto has managed to solve the double-spending problem),

  • technological (Bitcoin is a decentralized currency, and this technology cannot be reversed),

  • social (Bitcoin changes the way separate individuals deal with money because they don’t have to be trusted anymore).

Why is Bitcoin price so volatile?

Bitcoin price is determined by the current market sentiment. The demand for the coin– the higher price. Just like with any goods at your local supermarket or a bar of gold. Bitcoin is known for its huge fluctuations. Even though the currency’s volatility has recently reached its two-year low, Bitcoin price is still wont to erratically move up and down.  

Why is Bitcoin price so volatile?
(Source: Fortune)

Speaking of volatility, it is important to mention that stocks, oil and other commodities are volatile as well. However, Bitcoin (along with other cryptocurrencies) have more dramatic price swings because the scope of the cryptocurrency industry is still small compared to other huge industries, so it is still prone to market manipulations.  

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Can Bitcoin price go to zero?

While it’s clear why cryptocurrencies have value, there are plenty of speculations of whether the biggest cryptocurrency in the world can become completely worthless. Back in December 2017 (during the Bitcoin’s peak), Morgan Stanley’s James Faucette came up with a prediction that Bitcoin price could eventually go zero.  

“If nobody accepts the technology for payment then the value would be 0,” Faucette said in his analysis.

Over the course of history, there have been numerous currencies that would become completely worthless. The German Mark is one of the salient examples. The Zimbabwean dollar is considered to be a modern example of such a currency. Bitcoin, with its slew of innovative features, is really looking like a disruptive force, but no currency is safe from going underwater. On the flip side, Bitcoin enthusiasts will soon celebrate the currency’s ten anniversary, which is a rather extensive period of time to say that Bitcoin is here to stay.  

As a basic rule of thumb, no currency is considered completely safe. Sure, Bitcoin is more volatile than the majority of fiat currencies, but no one can definitively state what is going to happen to the coin in the nearest future. If you want to see what the industry’s top experts have to say about, check out our top Bitcoin price predictions.

If Bitcoin adoption grows, there is a practical limit on where its price may go. The US dollar is the only currency that accepted by the government in order to pay taxes, “intrinsic value” and it is widely used in commerce, so it may take decades for Bitcoin to get on this level of adoption.      

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🎤 Interviews Igor Grigorenko

Crypto Trading Legend MasterLuc: “You Can Visit Cemetery of Dead Alts, Won’t Find Bitcoin There”

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The legendary trader MasterLuc is known in crypto community for his precise predictions. Here’s his exclusive interview
Crypto Trading Legend MasterLuc: “You Can Visit Cemetery of Dead Alts, Won’t Find Bitcoin There”

Bitcoin is experiencing tough times as it has suffered a severe correction of over 70 percent from the point of its peak value. Now is the time to worry about its future, so we decided it’s about time to turn to the anonymous trader MasterLuc, whose fantastic prediction skills made him a legend on Bitcointalk.

What made MasterLuc famous was his 2016 prediction of Bitcoin price all-time high at 20k, which was done at a time when no one could even imagine such figures.

MasterLuc shared with us his vision of the future of the crypto market, he explains why Bitcoin is strongly undervalued, and why most altcoins are going to die.

The interview was organized with the help of the blockchain scoring platform Prosphero.io.

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CryptoComes: Right now, we see a profound correction of the Bitcoin price. Are you going to give up on your famous prediction of Bitcoin continuing its significant rise in price?

ML: Are you interested in the technical answer to your question, or the emotional answer? From a technical point, everything is alright up until the 2,990 mark, any lower than that and you can start feeling strained. From an emotional side, the answer is no; bubbles don’t burst like that.

Enough of those bear traps need to pass so that the bulls сan principally lose their fear of a bitcoin dump.  

When the vast majority of bulls stop straining over a dump of Bitcoins, then you can expect trouble. However, at the time being people continue to be tense. This is merely a correction.

On the other hand, I expect a new strong bullish trend in Bitcoin not earlier than 2019.

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CC: How do you comment on the skeptics who are predicting the next death of Bitcoin… will it really survive under the pressure of these newer alts that are equipped with the latest modern technology “on steroids”?

ML: You can visit the cemetery of dead alts here.

But you won’t find Bitcoin there. Instead, there are hundreds of alts, and they will all eventually get there. Partly because no one yet has brought a revolutionary technology that resembles the scale of Bitcoin to the table. If we were to compare Bitcoin to the invention of the internal combustion engine (ICE) and cars, then yes, you could say that alts are attempting to improve something.

Like the car industry, they’re repainting the red to green, removing a piece from the edge, building up the wing of this new car, adding a liter to the tank, cramming in extra bells and whistles. But the ICE remains the only revolutionary invention that gave civilization a breakthrough.

And still, with so many alts, the next revolutionary step is for Bitcoin. I’m talking about Lightning Network. So why do we need these alts? I have many friends in the CryptoParty, and no matter whom I ask “why are you mining alts?”, the answer is always: “To sell them for Bitcoins.”

Alright, we’re pretty clear about altcoins, let’s say that they are an unnecessary part of the evolution of Bitcoin…

ML: … Hold on, I’m not saying that altcoins are unnecessary. It’s just that most alts are created and used for one goal—to get more Bitcoins.

There is also a quite functional form of alts, for example, Litecoin. It appeared at a time when people were tweaking some constant in Bitcoin’s source code to quickly release a new alt. Litecoin did precisely that, but it also changed the basic hashing algorithm from SHA2 to the experimental algorithm Scrypt.

In theory, Litecoin would have died just as the others had. But what makes it special? People are actively testing new features on it and then merging them into Bitcoin. The most significant achievement for Litecoin was its implementation of SegWit. Yes, this was a huge benefit, but again for Bitcoin.

Let’s face the truth, Litecoin is experimental, it’s like someone who voluntarily takes powerful medication for research purposes. After the testing and debugging are conducted on the experimental subject, it is added to Bitcoin. We are indeed in need of those types of altcoins.

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Alright, we’re going down the list– why do you have such revulsion toward Ether?

ML: The founder of Ether did something unacceptable—he has censored the network. He also does not hide his central role in the project, calling himself the “kind dictator.”

Understand that the revolution of Bitcoin consists of Blockchain technology, which helped eliminate the need for an intermediary institution, such as a bank, between Alice and Bob during exchanges of money. Blockchain is needed to exclude a central “dictator” who maintains the exclusive right to inspect coins, and who merely is granted this right because he is in the middle of every exchange.

The founder of Ether became that central entity. Ethereum is centralized, and it has one point of failure—the founder, who forks its chain left and right. Why? He just does what he wants, let’s not even discuss the motives of this nonsense. I don’t know why he uses Blockchain technology in this case since the technology was created to counter entities like himself.

Ether is centralized just like EOS. Both compete against other digital currencies like PayPal. However, the latter does not hide behind the mask of Blockchain. All of them love to block other accounts (even with the price of a hardfork), but this isn’t about Blockchain at all.

Again, the idea of Blockchain is simple: Blockchain is essential in places where no center or regulation is needed. If there is a center of any kind- like some office, leader, or something else that you can just close or fire- then there is no need for Blockchain. Ether and EOS (and some others) have a center, Blockchain, and even a project CEO. All of this put together is a project of insanity.

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You also don’t take ICO seriously, could you explain why?

ML: Oh, this is just a dot-com. This is how Wall Street entertained themselves in 1999. They would create imitations of online stores, issue shares of stock, sell out for millions, then repeat the cycle. Only a few companies survived during the dot-com hysteria, and they have since become the current giants such as Google, eBay, Amazon, etc. The remaining 95 percent of projects were washed away by the wave following the collapse of this pyramid. History is repeating itself with ICO.

Alright, let’s return to Bitcoin proper. Many believe that it is an outdated technology, at least regarding its ability to scale.

ML: Those people are merely undervaluing what will someday become of Bitcoin. They don’t understand its essence. Concerning its ability to scale, there is a short answer—Lightning Network. Just find out how much this solution outweighs all of those pathetic attempts to only-increase-the-block.

Let’s take a closer look at the problem of scaling and the importance of Lightning since it is the real future of Bitcoin.

ML: There are two different points of view on the solution of the potential problem of scaling the network.

  1. Quantitative. You need to slowly increase the maximum size of the block, or make it adaptively float. But for this, you need a hardfork—a strict division of the network.
  2. Qualitative. You can go to a new level of developing the network where there will be no room for this problem. Similarly, there will be no place for several other issues.

The second option is Lightning Network. This is the next level of development akin to the OSI model. Here’s an analogy that is understandable to sysadmins: Bitcoin is the first physical layer (a cable), and Lightning is the data link layer (ethernet protocol). There are higher levels—network, transport, and application. They have not yet been developed, but that is the logic of the development.

Just so you know, in that same Ethernet, there are outrageous limitations on the size of the datagram– 1,500 bytes (with much difficulty, you can achieve 9,000).

In other words, within all our networks today, on any path from any website to you– there is a 1,500-byte limitation on the size of the transmission through the data link layer of OSI. Don’t believe it? Google the size of MTU. It’s true. How is it then possible that you can watch multi-megabyte videos on servers like YouTube?

It’s very simple. The limitation exists on the second layer of OSI, but when you like a video, that exists on the seventh layer. On the third layer, the limitation has already been handled quite elegantly. On the fourth layer, nobody even knows that it is there anymore.

On to the point of this… those who offer to change the size of the block are offering a quantitative solution, which could potentially lead to another similar obstruction in the future, and then someone will want another block that is even bigger in size. In option one we are merely pushing the problem into the future, not fundamentally solving it in any way. For example, this is the approach of BCash. They offer growth in one dimension, but they reject a complex multidimensional development of the network, as seen in the OSI model.

Therefore, while lamenting about “problems of scaling Bitcoin”, think about the MTU data link layer of 1,500 bytes. It exists in any network. It is terribly little for our times. This limitation was put in place 40 years ago, and to this day nobody wants to hardfork the Internet to change the limit. Everything works excellent because a complex adaptive network model was created. Lightning Network is exactly the next big step in the right direction.

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Finally, I would like to discuss your critique of PoS, the consensus algorithm that many believe is the future of crypt, outweighing PoW. What’s wrong with PoS?

ML: First, let’s answer the initial question of why PoW was invented (HashCash originally). And why has Satoshi implemented this into Bitcoin?

HashCash was invented for the fight against spam. When sending a message, the sender would have to include his hash in the header. In no way did this complicate the lives of regular users because they needed to calculate only one hash. It did, however, seriously complicate the lives of spammers, who needed a new unique hash for each message, and they sent millions of those messages.

In other words, this technology, which opposes the centralization and virtualization of resources, opposes one person doing the work that should be performed by many people under normal circumstances. For example, sending messages, or verifying transactions and so on. This technology, unfortunately, does not entirely prevent the adverse effects, but it does impede the occurrence of these problems rather well.

Now about PoS. Even a cursory glance at this technology reveals its significant drawbacks in the fight against centralization. The higher your initial balance, the higher your chances are at sealing a block and getting more money in return.

To understand the absurdity of this idea, imagine an analogous situation where a PoW-miner has extra video cards and ASICs materialize on their own out of thin air while working on a network. They configure themselves on the fly, connect to the server, and begin working. That is precisely what happens to those with quite a wealthy wallet under the PoS framework.

Besides that, I believe PoS is wild centralization and deflation in one bottle. If the concentration of a fixed amount of money generates new money on its own, then PoS-systems, if they ever become popular, will spawn an especially exaggerated breed of hodlers. PoS will maintain a strong deflationary motive by just sitting on bags of money. But how will a real economy work in such a system? After all, it is paralyzed by the lack of moving money. PoS is a system that generates a passive revenue from fixed money, in other words, money that is taken out of circulation.

Finally, separate from the centralization and virtualization of resources is PoW.

It is real work that creates a decent load on the system. You will not be able to properly mine Bitcoin and Litecoin from one computer, this idea is initially meaningless (it is intended to be that way).

On the other hand, with PoS you can unleash an entire zoo of different PoS-systems, making a profit from all of them immediately and simultaneously. Drawing a parallel, you can participate in 10 or 100 networks at the same time. Now return to the initial example about spam and the story of why PoW came to be for Bitcoin to understand why the situation of PoS is absurd.

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Darryn Pollock

Can Bitcoin ETF Skyrocket the Market Like It Did For Gold?

Bitcoin’s latest surge could be in preparation for ETF which, in the gold market, played a huge role in upping its price. Can Bitcoin replicate this?
Can Bitcoin ETF Skyrocket the Market Like It Did For Gold?

Gold has always been a steady and reliable asset, but it has also been one that is ever evolving and growing. There have been changes in the gold investment game that have helped it along the way, and one of the bigger ones has been ETFs.

An ETF is a kind of investment fund where the price of assets like gold, stocks and oil can be tracked. These assets can then be traded on exchanges, just like conventional stocks.

These have been lacking from Bitcoin as regulators believe it is too unstable and volatile as an asset, but that is starting to change.

So, if we look at the graphs of Bitcoin and Gold over a period before the introduction of ETFs, and then after in the case of the precious metal, there are some clear and obvious similarities.

A matching graph

A matching graph

Gold’s growth in value has seen a few big changes, one of those being in the 1980s when Richard Nixon unsealed the US Dollars from gold, and that increased its worth as a result of demand and supply. Gold increased from $20 to $30 an ounce to about $600.

Then in 2003, the gold-backed ETF was introduced into the market by the Rothschilds and the Deutsche Bank; and this skyrocketed the price of gold to $1,300 an ounce, which is a 300 percent increase.

Bitcoin, who's price graph matches Gold’s in a manner which is slightly eerie, is now very much on the brink of its ETF moment.

The president of CBOE, a company that also has Bitcoin futures markets out there, has been trying to persuade the SEC to allow for ETFs to come to fruition. This follows from the first ever application in 2014, when the Winklevoss twins made the first formal proposal. Three full years later, the SEC finally got around to reviewing the proposed ETF - and rejected it.

But with the growth of Bitcoin recently into a much more stable and mass accepted product, it is getting harder and harder for the SEC to deny this moves. The SEC has spoken positively about Bitcoin before and could well be warming up to it.

Take over the gold market

There is also a belief that Bitcoin could start to outshine gold as an asset should it reach its ETF level. Gabor Gurbacs, director of digital asset strategies at VanEck/MVIS, says the following:

“Gold today has around $7 tln outstanding. If you take, say, five to 10 percent, I’ll let everyone do the math, Bitcoin has upside,” he explained. “Bitcoin is used as digital gold today. It’s a de-ri, if someone wants to outlay systematic risk, then one would go to access gold or digital gold (Bitcoin).”

It is interesting times for Bitcoin with positive rushing back to the market. If it was too suddenly pick up a major institutionalized coup like an ETF, it could well be a game changer.

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