Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19
Phase 1 of Stock Market Correction - 11th Mar 19
Long Awaited Stock Market Pullback has Finally Arrived - 11th Mar 19
US Presidential Cycle and the Stock Market - Video - 11th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - 11th Mar 19
Chinese Economic Data Shakes the Global Stock Markets - 11th Mar 19
The Fed Is Playing a Dangerous Game - 11th Mar 19
The Stock Market Has Called the Fed’s Bluff, What’s Next? - 11th Mar 19
Turkey Holiday Bazaar Extreme Jewelry Price Haggling - Fethiye Market - 11th Mar 19

Market Oracle FREE Newsletter

Stock and Finanacial Markets Trading Analysis Worth

As Bitcoin Breaks All-Time Highs Near $18,000 Its Future Has Never Been So Uncertain

Currencies / Bitcoin Dec 17, 2017 - 03:23 PM GMT

By: Jeff_Berwick

Currencies

Bitcoin has yet again hit another all-time high today of $17,645.89 on the Coindesk Price Index.

Yet, while much of the traditional financial world are piling into bitcoin, the direction of bitcoin has perhaps never been so unsure.

I’ve posited my conspiracy theory of how Blockstream and others may have surreptitiously hijacked bitcoin. But, whether that is the case or not, one thing is absolutely for sure; Bitcoin has changed dramatically in the last year from its initial intention and objectives as outlined by Satoshi’s white paper.

The title of the white paper itself, after all, was “Bitcoin: A Peer-to-Peer Electronic Cash System.”


And, now, according to many of the Bitcoin Core developers, bitcoin’s objective is no longer to be an electronic cash system.

This is a massive change that seems to have gone unnoticed or unchallenged by most. Yet, it could potentially mean the death of bitcoin.

Many of bitcoin’s detractors like to point out that bitcoin has no intrinsic value. Of course, nothing has intrinsic value, so they are making a non-argument from the get-go.

But, when pointing out why bitcoin has subjective value, some of the main points were:

1.)It is a digital cash that facilitates transactions perfect for the digital age

2.)It is cheaper to use than traditional cash and transfer systems

3.)It is faster than traditional cash and transfer systems

Now, with the direction Bitcoin Core is taking bitcoin, none of those points are fully true any longer.

But, all of those points would still be true if the bitcoin block size was just increased from 1mb to 8mb.

As a reminder, 1mb is less than what was held on this archaic storage medium from the 1980s.

Bitcoin Cash forked from Bitcoin on August 1st in a dispute that the block size would fix the speed and cost problems associated with bitcoin’s growth. And, it has been partially proven right. Bitcoin Cash transaction fees, on average, cost less than $0.20 USD while the average bitcoin transaction fee sits over 100x higher around $21 USD and bitcoin cash confirmations take on average 8.5 minutes while bitcoin confirmations take at least an hour on average. Plus Bitcoin Cash can do roughly 31 transactions per second while bitcoin can only do between 4-8 per second even with Segwit.

Yet, Bitcoin Core proponents say that increasing from the ludicrously tiny 1mb to 8mb is too dangerous!

Instead, they have created an entire mishmash of very convoluted and complicated side chains that, so far, have not fixed the cost and speed problems.

And, that is assuming they even want to fix those problems. According to many Core developers, they think high transaction fees are a good thing and show the value of the network.

When pushed and asked when or how bitcoin will ever be usable in day-to-day transactions in the future, the answer is always “the lightning network” and the estimated time of arrival is always, “we don’t know.”

Here is one of Bitcoin Core’s top developers, Adam Back’s, answer to that very question:

"So I mean for today, you could have, some bitcoin business have a tab, so you pay them and you work your tab there and presumably you can cash your tab out if you don't use it. If you have repeat custom... or maybe the shops in the local area could make a shared tab or something in anticipation of... you know somebody in the local area ... technology expert could make a local bitcoin tab that's interoperable between the shops and some sort of app to do it."

Yes, that was his answer. And, scarily, he did not appear to be massively intoxicated. That was his sober answer… that maybe, in the future, you can get a bitcoin tab at your local shop if someone creates the technology so that you can use bitcoin to maybe buy things. Maybe.

In the meantime, bitcoin is the DMV of cryptos. Long lines waiting to pay expensive fees and a lot of frustration.

In fact, if bitcoin isn’t and doesn’t have a plan to be used as digital cash then it really shouldn’t even be called a cryptocurrency… because it is missing the “currency” part.

And, even if the lightning network does come to Segwit bitcoin there are a lot of questions about just how it would function.

This video does a good job of explaining some of the issues:

And, while we wait, unconfirmed transactions continue to pile up. You can see the list in real time here . It is currently over 150,000 transactions that are in the queue waiting.

And, across the world, businesses based on bitcoin being usable as a currency are either going out of business or having major problems.

This week I had the opportunity to interview Amaury Sechet, the lead developer of Bitcoin Cash about all these issues. You can see it here:

Both Roger Ver and Amaury Sechet will be speakers at the upcoming Cryptopulco conference at Anarchapulco in February.

As well, to ensure fairness, Bitcoin Core proponent, Trace Mayer and Bitcoin Core developer Jimmy Song will also be speaking at the event.

Discussions could get heated. And rightfully so. The stakes have never been higher.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2017 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules