Is the emperor, bitcoin, naked?
November 19, 2018•521 words
They say that the US dollar price is artificially propped up by the fact that nations have to buy US dollars to buy oil.
Well, people have to buy bitcoin BTC to buy most other cryptocurrencies. Doesn't that artificially boost the BTC price?
What happens when more and more altcoins establish their own crypto-fiat pairings, like electroneum just announced, for example? (Starting this month, you can buy electroneum directly with euro and the Turkish lira.)
What happens to bitcoin's price when most cryptos can be bought without first having to buy bitcoin, and we're left with a bitcoin that's simply slow to transact with, and expensive to send?
Will the emperor be found naked?
If so, then the current cadre of bitcoin developers will be the fraudulent weavers of the magic invisible cloth that left the emperor naked.
Already, there are voices calling out that the emperor is naked, and those voices are denounced as childish. Well, it was a child, in the story, who first dared to say that the emperor was simply naked, not clothed in magic cloth.
Look at the facts. Bitcoin BTC was unnecessarily crippled by the developers' refusal to increase the block size to accommodate increasing transactions, forcing bitcoin to its knees last year, a victim of its own success. Network congestion caused transaction fees almost to a high of 50 USD, making any transaction below that price impossible, while the BTC blockchain choked on full blocks capped at a measly 1 megabyte each. 1 MB. That's less than a floppy disk could hold. Remember floppy disks, old guys?
Meanwhile, bitcoin cash BCH broke away and did the "childish and immature" thing of simply increasing the block size to accommodate rising transaction volume.
BCH transactions are now instant and cost less than a penny in USD. BTC transactions currently take up to an hour and cost more than ten cents in USD.
How did bitcoin BTC become such a great "store of value"? Because of its immutable record stored on its blockchain. Its limited supply of 21 million bitcoins. Its use as a universal medium of exchange.
The current cadre of BTC developers is obsessed with second-layer solutions to take transactions off the BTC blockchain, making it less relevant. They've successfully crippled BTC to the extent that you can't use it for small payments. (Can your restaurant wait an hour for your dinner payment to clear?) So, already, two of the three big things that made BTC big, have been crippled.
Why are the powers that be in bitcoin development doing these seemingly stupid things? Asking these questions return ugly answers, to me. Something is rotten in the state of BTC.
Don't put all your eggs in one BTC basket.
That being said, it's not easy to kill BTC. It's very resilient.
(Though, to kill it might be unnecessary. Crippling might be sufficient for the dark forces' nefarious purposes.)
Tread boldly but wisely. These are exciting times we're living in.
Step in with both eyes and ears wide open. But step in. Not to step in is like ignoring the World Wide Web in 1997.