Is Bitcoin Cash the Hallucigenia of Crypto? Do big blocks make sense?

in bitcoin •  7 years ago  (edited)

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Hello my fellow Steemians and Crypto Investors,

As you likely heard by now Bitcoin Cash will be forking again on May 15. There will be several changes introduced but the most notable one will be an increase of the maximum blocksize to 32 Megabytes.

In the meantime, the Lightning Network, Bitcoin's second layer scalability solution, continues to grow and mature

These developments beg the question: Which of these solutions will win in the long run? Billions, possibly trillions of dollars of investors’ money, some of those yours, are depending on the answer to this question.

Crypto is evolutionary

I very much like Andreas Antonopoulos’s way of thinking about crypto developments. He compares them to biological evolution, which makes a lot of sense because, after all, crypto developers are human, essentially biological machines that continuously try to improve on their creations by branching out different solutions to the problems the real world throws at them.

Most of these solutions die out, never make it in the real world (see this process in action at Github), but the good ones remain, they get attacked and become stronger, just like it has been happening with biological evolution for billions of years on earth.

Is Bitcoin Cash (Big Block solution) an evolutionary dead-end?

I believe so and here’s the simple, fundamental reason why:

Handling 24,000 transactions per second, like the Visa network does today, through a big blocks solution would require huge 3.4 Gigabyte blocks to be transmitted over slow internet connections, such as those behind China's firewall, or in the rural locations close to cheap electricity where most mining happens, in much less than 10 minutes. That's simply not possible...


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Hallucigenia, an evolutionary dead end. A prehistoric worm with a shape so incredible that scientists named it after an acid induced hallucination. It played in interesting part in the history of life on earth but it's no longer around...

See the problem? The blockchain would become so bloated and big that only big companies would be able to store it and transmit blocks in time via superfast and ultra-expensive fiber optic connections. For this, they would need very costly, highly centralized datacenters, easy to take down by governments or other bad actors. Mining from space, one of Bitcoin’s greatest survival strengths, would also become impossible with such big blocks.

Why I believe second layer solutions such as Lightning Network are the answer

It has already happened before! Remember when the internet was running out of ip addresses and many reputable computer scientists were predicting it couldn’t possibly scale? Well, Network Address Translation (NAT), a second layer solution you are using on your home router right now, came to the rescue.

Also, the fact that most of the other big blockchains, such as Ethereum, Litecoin and even Ripple, are introducing similar solutions, rather than increasing their block sizes, tells me Second Layer is the future.


Andreas M. Antonopoulos speaking about another evolutionary battle happening in Crypto: Bitcoins vs Ethereum - The Lion and the Shark: Divergent Evolution in Cryptocurrency

I would love to be proven wrong and learn!

I've been wrong so many times in my life I couldn't possibly count them! Every time I have learned a lot from those mistakes. Maybe there's something I'm not seeing in this equation and you can prove me wrong.

I would love that to be the case so that we all learn. Please do share your arguments on favor of Bitcoin Cash in the comments below. I would love to hear them.

Hope you like and resteem this post! Also, please share your experiences with LN.


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Meme generated at imgflip.com/memegenerator

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So, where do you stand on this debate? Do you believe in Second Layer or Big Blocks? Why?

Feel free to share your thoughts on this post with the Steemit community in the comments below!

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What have you been doing this crypto winter?

  1. Accumulating patiently like a professional hodler.

  2. Panic selling like a hopeless noob.

If you answered 1, go ahead and download Crypto Millionaire from the link below. This app will help you diversify in a smart way, especially right now that' it's such a good time to buy the millionth of supply of top coins on the cheap.

If you answered 2, sell everything and become a pimp. It's the only way you will be able to keep selling bottoms, haha!


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Happy crypto investing!

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I use steem for social media, golem to share my computing power, waves platform to issue coins for my accounting firm, Cardano to store value on the very secure Daedalus wallet. I don't hold much bitcoin, bitcoin cash is just another BTC clone in my view.

Yes, BTC will go up in value, but I see better value elsewhere for my investments.

BTC is almost 10 years old, that's ancient in crypto terms. Trying to turn BTC into the day to day currency is like trying to add WiFi capabilities to an Atari Computer. Sometimes you just need to start over to do it better.

@kabir88

Play it safe and own both!!

You bet I do ;) I just have more into Bitcoin. Regards

Great post sir

It's too early to judge cryptos now. I guess let's try to give it a few more years to see if crypto is really valuable. Right now, it's a good money making machine.

Agreed.

All we can do is watch the crypto space evolve and hope we are betting on the right ones. I also believe that many coins will be top and that our universal wallets will automatically trade between different coins, ultimately giving value to any traded coin.

I do have to admit something while i dislike bitcoin cash i don't hate it. The big block is a legit scaling idea. It works but that is....
Bitcoin will increase it big blocks at the last moment. We still have schoor,Mast to go. Segwit is not at 80%. I agree with you second layer is the future. LN and sidechains is the future.

I have always been skeptical of Bitcoin Cash. I don't know why I don't like it it just seems 'fishy' to me. I honestly don't know why no other crypto have made me feel that way, I usually understand every other crypto in some way but I just can't get myself to like Bitcoin Cash...

thanks for your valuable and informative post.
We can take out a lot of information by your post.
By dint of we can increase our skill that is beneficial for all steemians.
I will always visit your site & wait for your upcoming post.
Thanks .
@Resteem & follow has done.

There is always logic in your post. and I think maybe the true winner has yet to present themselves.

Resteemed This post to make people know

Thank you.

  ·  7 years ago (edited)

IDK why people "hate" BCH? It trades faster and cheaper than BTC. It solves 2 major problems that BitCoin has: it's more economical with both time and money. IMHO, the use cases for BCH are much stronger than for BTC. My bottom line has been greatly improved over the last 3 weeks of trading by preferring BCH over BTC. It doesn't get any more simple than that.

That video blew my mind! That guy is a freakin' "smart person." However, Dan Larimer is even smarter. I don't really think that BTC or BCH or ETH are going to matter for much longer.

EOS finally launches its' own network on June 1st. I think it combines all of the best of both BTC & ETH, it was designed to do so, and it's going to blow everything out of the water in about 1 month. Simply put, I can not get enough of it because I already know it's going to the moon and in 2 years time it will create more millionaires than the launch of Microsofts' initial stock offering.

That's my take on the crypto situation right now. But, I could be wrong - so I'm still HODLing some BTC and ETH. Whatever happens, I'm going to be just fine. My stack of physical silver ensures it. If cryptos end up being some failed experiment, precious metals will do a moonshot. Maybe I'll get lucky and all 4 will simultaneously get a moonshot. IDK. The world is changing, FAST!!! I'm trying to be ready to adapt to whatever then future environment becomes. I think I will be all right.

Upvoted and Resteemed.

I don't "hate" BCH, I actually hold some. With this post I just wanted to point out why big block solutions are not going to work in the long term.

BCash is trying to stay hard in news. Bringing back dynamic smart contract code which satoshi nakamoto removed himself doesnt make sense

Thanks for the vote. Resteemed your post. I think my followers will love this post. My goal os all about saving people from investing in bad/scam projects.

It's too early to judge cryptos now. I guess let's try to give it a few more years to see if crypto is really valuable. Right now, it's a good money making machine.

Great share! My intuition goes into Bitcoin over Bitcoin cash. @cryptoeeagle

The forking scares me as it feels like inflation. Maybe not inflation. I know it is not inflation. But I mean that it seems dangerous like trying to split paper. It is like trying to cut up a pie into more slices. But then again, I know it is not exactly like that.

I Guess I am a bit bitter of BTC, the original Bitcoin which I have about 1K USD worth of at the moment. I have a little BCH, Bitcoin Cash, and do hope for the best for the competition of different cryptocurrencies. I hope I can bet on the right horses of cryptocurrencies. I like the idea of the lightning network for faster transactions. I have some Litecoin too. Not too sure what to think about Bitcoin Cash but do hope for the best. Am hoping BTC rises up again someday too.

Very interesting. I was thinking the opposite about Bitcoin Cash until I read this!

You make some really good points. Many people have said BCH will win out but I think maybe the true winner has yet to present themselves. In the end it will be fees and speed that will decide the winner.

This crypto season! I am accumulating patiently like a professional hodler. :D

I believe blindly that accumulating is my solution, be patient and wait. also for the steem that is the one that has remained quite firm with all these changes. better be cautious. great the application that you recommend Crypto Millionaire, I'll try it sir dolphin. always providing good content about cryptos, you're going to have to tell me your secret :). a big hello brother.

I wish you a happy day and a better life


In my opinion Bitcoin Cash is here to stay AND this is a big and…come later when Bitcoin itself is ready to increase its block size and there is somehow another hard fork needed, Bitcoin Cash will really flourish.

Before then I think a lot of backers of Bitcoin Cash will slowly dump money into it to keep it somewhat comparable to Bitcoin. There might be some wild fluctuation right now and that’s because all the exchanges that have BCC/BCH wallets are not allowing withdraws or deposits. It is causing major discrepancies with prices.

Have you ever noticed that when you pay for something using a debit or credit card, it somehow doesn’t seem like you’re spending ‘real’ money? It’s somehow a lot harder to hand over a wad of banknotes or even a handful of change than it is to slot your card into the machine, or even wave it over the contactless scanner.

That feeling that somehow electronic money isn’t as concrete as hard cash is something we’re having to reconcile, since we are becoming an increasingly cashless society. It is certainly a lot more convenient to carry around a way of accessing the money in your bank account than it is to carry around sufficient cash for whatever you may need. Most banks now charge for the privilege of this convenience through a monthly or annual current account fee (which may also include certain benefits such as travel insurance).

But while going cashless is undoubtedly a choice that anyone can make, there are some who stop to ask what a cashless society would mean in terms of the information that our purchases could tell anyone who cared to find out. We are all aware of the notion of a ‘surveillance state’ and the presence of CCTV in our streets is now simply accepted as part of daily life – a necessary form of surveillance if we want to be kept safe from the criminal elements of society.

Passing cash between a buyer and seller leaves no trace (other than an anonymous till entry), but electronic payments between bank accounts do leave a definite paper trail that could allow the government or police to trace sales and purchases made in person or online. Is that a bad thing? Well, many people would argue that the only people who would not want their transactions to be monitored are those who are up to no good – and surely it is a good thing that the government or police could keep track of how they were spending their money

everyone should invest their money after making a deep analysis.

Traditional investors would consider any investment in a cryptocurrency (2017) to be a high risk one. So depending on how heavily invested in bitcoin you are, you might already fall under the definition of aggressive investment, according to those people...

wow great history like a history as a bitcoin topic.mus appreciate it

Bitcoin allowed some decentralized companies for cashless transaction. BTC high valued and acceptable currency some states without any approval. Only need release BTC stock for them.
Wonderful information shared about BITCF taken action.
Finally you introduced Alphabit currency with a analysis.......
Resteemed...

i think bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds,

Great news and information......There will be a big change in bitcoin cash from May 15.......So it's a great news for every users of steem and any kind of cryptocurrency...........Upvote done @crypoeagle

Thnxxx fr giving us an infrmative news sir..it would be more helpful fr us..i just follow regularly of ur evry post tht u shared sir. This types of things increases our thinking concept...
just wait fr the gd time being & ur upcoming post..☺👌

great nice standing blogs about bitcoain cash.

great post really informative like it.

I think this post will help me so much...

bitcoin cash is on the way down!
but hopefully, it will go up too!

Wow...very good news and very good information@cryptoeagle

Mystery is going to open again on May 15 in bitcoin. Which may have profit or loss.

I do need to concede something while I disdain bitcoin money I don't loathe it. The huge square is a genuine scaling thought. It works however that is....

Bitcoin will build it enormous squares ultimately. Regardless we have schoor,Mast to go. Segwit isn't at 80%. I concur with you second layer is what's to come. LN and sidechains is what's to come.

The second layer will help the network process more transactions.

This will quadruple bitcoin cash's block size parameter from 8 MB to 32 MB allowing for more transactions

Great upgrade! Future move

You are vary intaligent man and good job so carry..on.and thanks for given good news

This post very nice..i like bitcoin,,i appreciate your blog..thanks for sharing this post,,,best of luck.
I love Bitcoin

I will always visit your site & wait for your upcoming post.
Thanks .
@Resteem & follow has done.

Where's the resteem?

This is cool post..

Bitcoin is great
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holder holder everywhere :p
I'm too holding sbd's what you say about it?

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