How the World Plans to Celebrate a Decade of Bitcoin on Jan 3

On January 3, 2009, a decade ago, an American, an Irishman or perhaps a Finn, or a possibly a group of innovative computer programmers and mathematicians created the first 50 bitcoins known as the Genesis Block.

How such an abstract concept without an identified founder became a $100 billion market in just a decade is now common history.

As for the creator, always known as Satoshi Nakamoto, many have subscribed to the idea that a code so impressive must have been written by multiple sources. The creator or creators’ goal was simple; to create a “purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.”

Although this goal has somewhat lost some of that simple significance over the past decade, it still remains the digital currency’s raison d’etre essentially. Since 2009 it has a come a long way and fortunes have also been won and lost. From its first physical manifestation in a Bitcoin ATM at a Vancouver coffee shop in 2013, it is now viewed by struggling economies from the Middle East to Americas to Central Russia as a way out of financial chaos or international sanctions.

Loved by some, hated by others, how then will the world celebrate Bitcoin’s 10 years of impact on the financial status quo around the globe? Will Bitcoin be viewed as the “mother or father of all scams and bubbles,” or the basic infrastructure for a whole new way of looking at how society pays for what it needs?

As we move into 2019, there are governments around the world who clearly have no desire to see Bitcoin moving into the public domain as Satoshi intended back in 2009. The concept of a “purely peer-to-peer version of electronic cash” as stated in Bitcoin’s initial white paper in these countries is a long way from becoming a reality.

In South East Asia, so often called the Bitcoin’s heartland has South Korea and Japan leading the charge in adoption rates in the region, whereas China, Thailand, and Taiwan have either banned or restricted its use as an alternative currency. Further West, India’s current crypto ban has become common knowledge.

In Europe, where tiny Switzerland has become the region’s blockchain hub and allows Bitcoin payments in a multitude of both practical and innovative situations, there are nonetheless detractors to any idea that public use of Bitcoin may be seen as a future possibility. Both Russian and German legislators have no desire to see Bitcoin used as Satoshi intended, although both countries are integrating digital currency into their banking systems.

Where then is Bitcoin’s heartland on Jan 3, 2019? The site 99Bitcoins lists the world’s most accommodating Bitcoin space as being none other than the tiny UK Isle of Man. An unlikely location perhaps, but one that Satoshi would be proud of. The P2P goal is alive and well on “Mann” as locals call it. On the tiny island, in the Capital of Douglas, for years now, customers have been able to drop into a range of coffee shops, pay in Bitcoin, then on to the pub. Bitcoin accepted?… of course. Hire a car using BTC and see the sights.

Again, without really leaving the UK, another jurisdiction which has been developed as a Bitcoin hub is the British Overseas Territory of Gibraltar on the tip of Spain’s Iberian Peninsula. Like Mann, it has become a hotbed of start-up activity and has developed a positive attitude towards Bitcoin, supported by crypto-friendly legal frameworks.

Malta, Switzerland and neighbouring Liechtenstein will all be celebrating 10 years of Bitcoin with sound regulation supporting thriving crypto communities. Those others developing the Satoshi dream through continued innovation and commitment to pushing cryptocurrency adoption, often under challenging opposition to Bitcoin as a P2P public currency, continue to be leaders such as Slovenia, Canada, Netherlands, the US, South Korea, and Japan.

What then will the internet have to say about the 3rd January 2019, with the market still reeling from the strains of the 2018 downturn in Bitcoin’s fortunes. As usual, the pundits will be making their bets; the latest range gaining popularity, published by UK newspaper the Independent, hedging in the extreme, cites Bitcoin between $0-$33K by year’s end, a prediction clearly lacking imagination and aimed at appeasing its readership.

Wherever one is located on the planet, anniversary memorabilia will abound via the internet, such as Hublot’s Big Bang Blockchain timepiece with the cool price of $25,000 BTC equivalent; only cool if you happened to be on the right side of Bitcoin’s 2018 fortunes. The Meca-10 P2P watch is said to celebrate Satoshi’s “epochal invention including the fact that only 21 million bitcoins will ever exist in this world.”

Another piece of, perhaps more useful, memorabilia, given the subject of the celebration, is Ledger’s Limited Edition Nano. This one offers considerably more general interest, not to mention relevance to the occasion, given it is boxed to include a miniature edition of Satoshi’s whitepaper, with a Sgt. Pepper’s style historical line-up of characters on the cover including cryptography greats such as much misunderstood and acclaimed codebreaker Alan Turing. Retailing for just under $100 this would have been a steal, although, is now probably unattainable.

Of course, there will be anniversary coins such as South Korea’s myGeNomeCoin (GNC) offering coins through a snapshot of Bitcoin UTXO at 2019 0.00 UTC on Jan 3rd. Addresses that contain bitcoins at that point in time can claim the same number of myGeNomeCoin for every bitcoin they hold.

Finally, given that the art world and Bitcoin has forged somewhat of a marriage over recent years, it would seem fitting that a decade of Bitcoin should have some kind of artistic representation to mark the event. Bitcoin Art (r)evolution was held in Paris in October which according to the organizers attempted to create a “unique opportunity to decode the potential upheavals that cryptocurrency and blockchain can cause in the world of art.”

The public attending the event were able to purchase pieces using Bitcoin and three other cryptocurrencies. As a tribute to Bitcoin, artists were asked to hide images of the hallmark cryptocurrency in their submitted pieces.

Bitcoin remains an enigma, if only in the sense that its fortunes have been all but impossible to predict. But it has covered a huge distance from concept to reality in just 10 short years, with governments and private institutions transfixed by where it may be going, hesitant, but at the same time acknowledging its presence as a factor on the financial landscape.


Source
Author: Harold Vandelay
Image Credit

Litecoin [LTC] creator, Charlie Lee says: ABC vs SV fork will test the Nakamoto Consensus

On November 14, Charlie Lee, the creator of Litecoin, posted a tweet about the Bitcoin Cash hard fork which is scheduled today. He stated that the fork will be a good real-world test of the Nakamoto consensus. The crypto-community is filled with speculations about the upcoming fork of Bitcoin cash, which will cause it to fork into Bitcoin ABC [supported by Roger Ver, Jihan Wu] and Bitcoin SV [supported by Craig Wright].

Charlie Lee, in his tweet, spoke about miners moving back to mining Bitcoin if BCH dies, and an entity gaining enough hash power to execute a 51% attack on the competing fork.

The ‘Hash War’, so called because the upcoming fork has a conflict of interest between Jihan Wu and Craig Wright. The person who controls the majority hash power after the fork will have the upper hand, thus the fork with the highest hash power will be validated and accepted.

Nakamoto consensus is a set of rules defined by Satoshi Nakamoto in the Bitcoin whitepaper, which determines which block is validated and added to the blockchain. The blocks are added by miners through PoW.

The voting consensus defined in the Bitcoin whitepaper is very similar to the election of the president, i.e., one CPU is equivalent to one vote and Proof-of-Work [PoW]. Any alteration or addition to the Bitcoin network has to be implemented by hash power, so without the hash power, it is impossible to come at a unanimous decision. The Bitcoin whitepaper states the same:

“Proof-of-work is essentially one-CPU-one-vote. The majority
decision is represented by the longest chain, which has the greatest proof-of-work effort invested
in it. If a majority of CPU power is controlled by honest nodes, the honest chain will grow the
fastest and outpace any competing chains”

According to Lee, if either of the teams, gain enough mining power, they could fatally damage the forks by executing a 51% attack. If the miners gain control of the hash power above 50%, it means that they could stop the transactions from going on the block, thus stopping payments between parties.

Additionally, they would have enough hash rate to reverse the transactions. Since they have control of the network, they could also double spend the coins. So successfully gaining hash rate by either party could be used to destroy the competing fork.


Source
Author:  Akash Girimath
Image Credit

Bitcoin Cash Can Scale Exponentially and Support the Global Economy

For well over a year now the Bitcoin Cash (BCH) protocol has shown quite a bit of capability as far as on-chain scaling is concerned. The creator of Bitcoin knew that the technology had to expand in scale quite vastly in order to accept the magnitude of global commerce and businesses on the blockchain. In the early days, Satoshi told people that the technology would follow alongside Moore’s Law with high-performance computing, and the past year has shown the BCH chain can scale to fulfill the needs of the global economy.

Even Before Satoshi Nakamoto Launched the Bitcoin Network, the creator knew blockchain technology could scale

For a while now there’s been a lot of confusion and purposeful manipulation spread by people who have said that Satoshi Nakamoto’s creation cannot scale. Since August 1, 2017, the Bitcoin Cash chain has consistently performed despite all the naysayers. In fact, like the rise in merchant adoption, the Bitcoin Cash protocol itself has recorded many scaling milestones this year. The size of the blockchain and block propagation speed has always been some of the excuses people like to use when they object to on-chain scaling. However, on November 2, 2008, Satoshi wrote about the growth of the chain and believed the technology would not only rely heavily on the Simplified Payment Verification model, but also follow right alongside Moore’s Law.

“Visa processed 37 billion transactions in FY2008, or an average of 100 million transactions per day,” Nakamoto emphasized

That many transactions would take 100GB of bandwidth, or the size of 12 DVD or 2 HD quality movies, or about $18 worth of bandwidth at current prices. If the network were to get that big, it would take several years, and by then, sending 2 HD movies over the internet would probably not seem like a big deal.

Society Now Has 7nm Semiconductors, New Phones That Can Process 5 Trillion Operations a Second, and 14TB Storage Drives for Only a Few Hundred Dollars

Gordon Moore the founder of Intel had a very good observation back in 1975 that has been fairly accurate when it comes to society’s technological advancements. Gordon’s original prediction started in 1965 when he said the number of transistors added to an integrated circuit would double every twelve months. But in 1975 he changed his forecast to the component cost of a semiconductor doubling every two years. Moore’s Law has been very accurate and many businesses and individuals base the speed and growth of computational scaling using his observation. Moreover, Moore’s law shows a fairly accurate assessment of not only how our technology is blooming but also how the BCH protocol itself can expand global scaling and maintain protocol affordability.

However, blockchain storage has been used a primary excuse to stall scaling in the past even though semiconductor technology is improving vastly, central processing units and ram continues to grow more affordable, and storage space has been following the same path. One could even attribute the mining of cryptocurrencies towards the improvement of semiconductors. Moore’s law is still alive and well and it may be a hair behind the observation’s timeline of increased performance every two years, but it is still growing at an exponential rate.

Apple’s new A12 7nm chip can process 5 trillion operations per second proving our computer devices continue to be faster with each new development.

We can see this proof with 10nm and 7nm chips that are making their way into our computational lives. 45 years ago Intel’s first microprocessor could only process 90,000 operations per second, but now the latest A12 Bionic 7nm chip for the new iPhones can process 5 trillion operations per second. Small mobile devices we keep in our pockets show how fast technology is growing while laptops, and other types of computers are no different. This means there is absolutely no reason to slow down scaling efforts, because of Moore’s Law and its theoretical limitations. That’s like saying we should toss in the towel in because future quantum computers could ‘maybe’ crack Bitcoin’s elliptic curve cryptography.

Another fallacy individuals like to use is block propagation delay or latency issues. This is the amount of time it takes for computer networks like the Bitcoin protocol to propagate blocks. However, latency is a really easy fix for any computer network by making adjustments to both the software and hardware specifications. The argument may apply to non-mining nodes using 56K modems, but with concepts like Fiber optical cables latency is really a non-issue.

Miners the ones who truly depend on speed, and propagation time will scale linearly with the world’s fastest connections. Further ideas like bloom filters and Graphene are just a few examples of how scaling past latency can be dealt with easily going forward. Graphene is just one example of how block propagation bloat can be solved and there are many other ideas.

The BCH Unspent Output Set Size is More Efficient Than BTC’s Set Size Today and Can be Improved Easily

To add to this excuse, another horrible reason people fight against on-chain scaling is because of so-called ‘uncontrollable’ UTXO set size growth. Individuals think the data from the unspent output (UTXOs) from bitcoin transactions could cause the UTXO set size to grow exponentially too large. However, BCH proponents are not worried about UTXO bloat as the UTXO set could easily be sharded, and right now the Bitcoin Cash protocol is consolidating unspent outputs in a more efficient fashion than the BTC network. This can be seen by quickly observing the UTXO set for BTC in comparison to the BCH set. Fortunately for BCH developers, there are more efficient methods of UTXO selection and there are plenty of concepts to test and determine which process works best.

The Bitcoin Cash Chain Is Proving on-Chain Scaling Can Work, While Other Blockchains Depend Heavily on the Concept of a New Network That Could Be Riddled With Security Vulnerabilities and Centralization

All of the theoretical limitations of blockchain scaling can be solved, and some of us know — Things do not get solved by doing nothing. Both Moore’s Law and Nielsen’s Law of internet bandwidth are still growing and there’s no need to think it’s going to stop any time soon. Low-latency fiber-optical cables and other ideas are improving global bandwidth speeds drastically. Semiconductors are faster than ever before and terabytes of hard drive space are super affordable compared to ten years ago. The Bitcoin Cash chain has also proven that hard forks are safe and the block size can be increased easily. The community can now see in real-time and on mainnet when miners process big blocks what needs to be done to fix mempool bottleneck and other software issues.

With the data provided by Moore’s observation, Nielsen’s Law, new improvements in network latency, our perspective of current software and hardware limits, and the recent large blocks mined, shows the Bitcoin Cash community that the protocol can scale easily. We know Satoshi Nakamoto’s technology works, and it’s not very intelligent nor conservative to push people towards a second layer that’s not even close to being as secure as the original proof-of-work model.

For close to a decade now we know that Nakamoto consensus is very secure. Bitcoin Cash proponents plan to keep the security layer pure and scale the protocol so it can sustain the global economy. Processing 2.2M transactions in one day at a rate of 26 transactions per second within multiple large blocks (23MB block) mined shows true performance. While at the same time the network has managed to keep BCH network’s transaction fees around $0.001 per transaction. The past 13 months of Bitcoin Cash upgrades and stress tests are merely the baby steps towards massive on-chain scaling.


Source
Author: Jamie Redman
Image Credit

3 REASONS WHY BITCOIN IS PROGRAMMED TO PUMP

Despite non-stop criticism, obituaries, and competition from altcoins, Bitcoin has undeniable advantages — ensuring that its value will keep rising for decades to come.



 

It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.

Bitcoin is a money technology, unlike anything the world has ever seen — as it requires no trust. It is simply software designed so that all parties are incentivized to play by the rules. This, in turn, could make it one of the biggest opportunities to accrue wealth for generations to come.

Here are three reasons why “it might make sense” for people to buy some bitcoin “in case it catches on,” as Bitcoin’s inventor advised.

1. HARD SUPPLY CAP

The 21 million bitcoin that will ever exist is probably the most attractive attribute to any low time preference investor. It is also the most transparent investment in history as the supply (and every transaction) is publicly verifiable.

“Bitcoin’s volatility derives from the fact that its supply is utterly inflexible and not responsive to demand changes, because it is programmed to grow at a predetermined rate,” writes Saifedean Ammous in his book, The Bitcoin Standard.

In fact, Bitcoin volatility has been diminishing over time as it matures. What’s more, volatility itself is perhaps even attractive for traditional traders looking for bigger returns. At the same time, swings in Bitcoin price $7368.13 +0.14% become a non-issue for holders who expect the value to grow due to the finite supply.

“Volatility currently exists, but so what? If anything, that’s a good thing. Hoarders are not swayed,” writes Daniel Krawisz of the Nakamoto Institute, who also notes:

Those who are hoarding are already using Bitcoin as their unit of account, in order to calculate long-term opportunity costs.

Out of the 21 million bitcoin, 17 million already exist, an estimated 4 million are lost, and 4 million more are left to mine. Therefore, any growth in demand will mean a higher bitcoin price in the long term, particularly in the run up to the next Bitcoin halving.

“There isn’t even enough BTC to go around for every millionaire to own one,” says Litecoin creator Charlie Lee. “So before you buy any other coin (LTC included), try to own at least 1 BTC first.”

2. NO ONE IS IN CONTROL

Throughout history, there was always some entity forcing people to use its money — be it the state, the church, or the central bank.

“In a world where everyone is using crappy government-controlled and censored money whose supply is expanding, anyone who has unstoppable hard digital money is at a huge advantage,” explains Ammous.

By successfully solving the Byzantine’s general’s problem through the proof-of-work, Bitcoin not only incentivizes people to save but also enables a system of monetary non-governance where politicians, central bankers or your local warlord are irrelevant.

Even the parties involved in maintaining the network do not have the power to make Bitcoin do its bidding.

Are the miners in control? No. The network’s nodes will still reject any invalid blocks even if the miner controls over 51 percent of the hashrate.

Are the developers in control? No, because they can’t force users to run their open-source software.

Are the businesses in control? No, because the failure of the New York Agreement was clear evidence that changes can’t be implemented by a conglomerate of businesses and mining pools. Only users running full (peer) nodes with the full copy of the blockchain can validate transactions and make sure everyone plays by the network rules.

Of course, there have been numerous attempts by self-appointed “representatives” of Bitcoin to wield influence over the network. However, Bitcoin’s neutrality ensures that these entities either fade into irrelevancy (e.g. Bitcoin Foundation) or fork off into altcoins they can control.

3. THE LINDY EFFECT

With each passing day, Bitcoin’s immutability only becomes more pronounced with growing network effect.

This means that Bitcoin will continue to be the reserve currency of the internet due to the Lindy Effect. It is a concept that the future life expectancy of some non-perishable things (like a technology or an idea) is proportional to their current age so that every additional period of survival implies a longer remaining life expectancy.

Bitcoin is the first and most battle-tested cryptocurrency. It has the highest network hash rate. It has died over 300 times. Yet, it’s still here, working as intended with 99.99 percent uptime — making it the logical choice for investors to park their money.

“Just like there is no market demand for a smaller internet knock-off, there was never any real demand for a smaller, unsafe, unreliable, untested, new Bitcoin alternative,” Saifedean Ammousexplains. He also notes that altcoins “went insane”  by tweaking “small metrics” in an effort to improve on Bitcoin to no avail.

Ammous calls Bitcoin the “perfect storm” because the founder disappeared — letting the software grow up on its own. Bitcoin is like a child that was thrown into the jungle and survived, he explains.

Most likely, you throw a one year old in the jungle, he’ll die. But if he survives you’re going to have a massive monster. It’s going to be very powerful. It’s not going to be able to stop. Now you can’t just bring another kid his age now twenty years on who’s lived in the city and tell him to go spend a couple of weeks in the jungle and then go fight this guy. It doesn’t work that way.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: ALLEN SCOTT
Image Credit