Free eBook from Bitstocks debunks Bitcoin myths

Several books as of late have taken different looks at Bitcoin, and told the stories of its creation and those who latched on to it. But perhaps no book has tried to tell an end to end history as succinctly as Bitstocks new eBook, “A Short History of Bitcoin Myths.

While the history of Bitcoin itself is important to understand what it is, due to the incorrect popular perception many have of the digital currency, debunking the myths are just important. Bitstocks book seeks to do that for every important step along the way of Bitcoin’s history.

The story begins with the origins of Bitcoin, and importantly, the elements that had nothing to do with its creation. It gets into the obscure manipulation that created the financial crisis of 2008, and quotes Dr. Craig Wright extensively on why he created Bitcoin to provide greater transparency in financial matters.

As the book dives into what happened after Bitcoin came to life, there are plenty of myths for it to handle. Chapter two discussed how the cypherpunks co-opted Bitcoin for their own anarchic purposes. Chapter three then covers how those anarchists and their criminal friends made Bitcoin the tool of the dark web, forever diverging its past into what eventually became BTC.

Despite that path, the idea of Bitcoin was still popular, and chapter four discusses how, despite the public wanting to embrace it, development of the blockchain was sabotaged to keep it niche. In chapter five, ethereum was created to handle problems Bitcoin should have been able to handle in the first place, and BTC itself became a speculative asset, as discussed in chapter six. Chapter seven debunks the need for the lightning network, which was created because BTC developers said the crypto couldn’t scale.

Throughout each of these chapters, the authors discuss every myth that’s been propped by Bitcoin Core and Ethereum developers as reasons why the original Bitcoin couldn’t handle the task Satoshi gave it. They also explain why, in following that original vision, Bitcoin SV (BSV) is proving those myths wrong.

Throughout the book, experts from across the blockchain and cryptocurrency world are cited, proving how much effort the Bitstocks team put into this work. They aren’t just telling a story, they kept track of the evidence and they’re now using it.

Although at 56 pages, it’s probably the shortest read you can find to explain the full extent of how Bitcoin went from a thought in Satoshi’s head to the BSV it is today.

Head on over to Bitstocks page and check out the eBook for yourself. It’s completely free, and available to read now.

Don’t believe the FUD: How Bitcoin SV block reorgs, orphans affect you

There’s no shortage of anti-Bitcoin SV (BSV) propaganda spreading FUD (fear, uncertainty and doubt) about reorgs and orphans. But in reality, these features of BSV are far from the bogeymen they are made out to be.

Reorgs and orphans have been the subject of countless scare stories in recent weeks, some suggesting BSV is “faulty” or that user funds could be at risk. But increasingly, users are being advised not to believe the FUD.

In a blog post, crypto advisory firm Bitstocks set out to explain how reorgs are, in fact, a natural event in healthy blockchains, as per the Nakamoto Consensus.

“In plain language, a block reorg event is a normal part of the Nakamoto Consensus mechanism that solves the double-spend problem of distributed systems. For each new batch of transaction ordered, miners compete to solve an intricate computational problem, known as a ‘hash,’” according to the Bitstocks blog post. “The first miner to find the correct solution and broadcast it to the network earns the right to record the latest batch of valid transactions to the blockchain. In return, they receive a block reward (a combination of transaction fees and newly minted Bitcoin).”

The principle that the longest valid chain is the official one creates orphans in instances where two or more miners temporarily split the network. Far from creating a security risk, orphans validate the integrity of the blockchain more effectively.

Bitstocks noted, “There are also occasions where two different miners reach the finish line so close together, that the network is temporarily split on calling the tie. There are now two competing versions of the blockchain with slightly different endings. In these scenarios, the Nakamoto Consensus rule of ‘the longest valid chain is the official one’ comes into effect.

“The nail-biting competition is usually settled as soon as the next hash is solved and recorded to either one of the competing chains making one longer than the other. And that settles it. The winning (longer) chain is retained as the official version of the blockchain and the losing chain is ‘orphaned’.”

nChain Chief Technology Officer Steve Shadders said that reorgs and orphans were actually how Bitcoin was intended, with Bitcoin SV the only cryptocurrency that adheres to the Satoshi Nakamoto white paper protocol.

“We’ve all been told for ten years that orphans are bad and a security risk. But it’s simply not the case; it’s actually how Bitcoin is supposed to work,” he explained.

Dr. Craig Wright has also pointed out orphan blocks are not a “flaw”—they are, in fact, a necessary part of the system that makes Bitcoin strong.

“Many developers think that Orphan blocks are a primary concern that needs to be address and worse, fixed,” Wright wrote in his “Iron and Steel” Medium post. “Orphans are not a flaw; they are the carbon introduced into the Iron that makes Bitcoin steel.”

CoinGeek Conference Toronto 2019 Main day highlights

CoinGeek Toronto Conference 2019 Main Day highlights

Bigger blocks, massive scaling, and no limits. That was the theme of the CoinGeek Conference Toronto 2019, where all Bitcoin professionals from around the world gathered to talk not only about Bitcoin SV (BSV) developments, but also why massive on-chain scaling is essential for the ecosystem to move forward.

The main conference showcased high-caliber speeches and panel discussions—the hallmark of CoinGeek events. Special features include finalist presentations for the Bitcoin Association’s first BSV Hackathon, and a special intimate conversation with nChain Chief Scientist Dr. Craig S. Wright about the beginnings of Bitcoin.

Ryan X. Charles, CEO of Money Button, discussed “Digital Storage and Digital Rights Management on the BSV Blockchain with Money Button.” He tells us what it actually means to use massive on-chain scaling in a real business.

“Individual companies can often need terabyte size blocks just by themselves depending on what they do, so we need to scale massively because we’re going to put more than just one company—we’re going to put an entire industry, we’re also going to put the entire world’s economy on this,” Charles said. “The reason why that matter is it’s not even just payments. You actually can put real data on the blockchain too, and so the sizes start getting very, very large. If you need properties like, I really want this contract to be encrypted but also stored permanently and immutably so that no one can alter it after the fact, you put the actual contract on the blockchain. That takes data.”

Indie game developer Kronoverse built its platform for the BSV blockchain after seeing how the network is making unlimited scaling a unique reality. David Case, chief architect of Kronoverse, explains why BSV was their only choice:

“Well really, BSV is kind of like our only choice… it solves all the problems that we’ve been [having], and we’ve spent a year and half in R&D, [actually] over a year trying to just explore everything that’s out there in the blockchain space… Every step of the way, we had to solve all sorts of other problems, build all sorts of other toolings, and the scale and just being able to rely on the commodity blockchain that we don’t have to worry about how to solve the consensus aspect but yet having the scaling and the cheap transactions, just… it’s our only choice.”

For his presentation, Bitstocks CEO Michael Hudson talked about “Banking on BSV,” giving the audience an overview of what they can expect from Bitstocks’ groundbreaking Bitcoin banking ecosystem, Gravity.

“What we are launching first is the ability of the investment service, so the ability to hold Bitcoin [Core], Bitcoin Cash as well as obviously Bitcoin SV. The logic behind that is to enable people who might have a different view as what Bitcoin really is and while they’re going on their inevitable journey of discovery they have access to then convert their assets into SV if they wish to make that decision to then interact with the wider Gravity ecosystem, so that will be the current accounts, the debit cards, the loan systems, Gravity Pro which eventually is going to be some other cool things, I’m not going to announce right now, but they’re all going to be exclusively on Bitcoin SV. I don’t want to ostracize the Bitcoin Core community or the Bitcoin Cash community because they’ve been essentially miss-sold what Bitcoin is. We want to help support them and provide the infrastructure if they so wish to then have a much better experience that’s more in line with what we believe Bitcoin to be, which is Bitcoin SV,” Hudson tells us.

One of the highlights of CoinGeek Toronto scaling conference is a fireside chat with Founding President of the Bitcoin Association Jimmy Nguyen and Dr. Craig Wright, the person behind the pseudonym Satoshi Nakamoto and creator of Bitcoin. The two’s wide ranging discussion included topics like the beginning of Bitcoin—Nguyen opened the fireside by asking Wright, “Did you create Bitcoin?”—as well as the destiny that Bitcoin was created to achieve, and how Bitcoin SV (BSV) is fulfilling the destiny of Satoshi Vision.

In an interview with CoinGeek, Wright shared how it feels to see people building and moving the future forward for something he created. He said, “It’s good to see the energy and the vibrancy of the place at the moment. It’s wonderful.”

Wright also has this to say about Bitcoin and its future: “Bitcoin is an immutable evidence trail. It is a single global ledger. Once we roll it out, we’re going to make fraud expensive, fraud difficult. We’re going to make it so that people can actually trust money, trust negotiating with people, and because there’s no way to get away with something bad, there’s a record kept of everything, that’s what we’re seeking.”

For more exclusive interviews from CoinGeek Toronto and the latest in Bitcoin news and events, subscribe to CoinGeek.com.

Michael Hudson: Money is just a measure of someone’s time and skill

Michael Hudson: Money is just a measure of someone’s time and skill

Michael Hudson says he founded Bitstocks in 2014 to help the “everyday investor” understand cryptocurrencies. That meant trying to “get rid of all these nerdy, geeky terms” and offering advice to people who want to gain access to crypto markets.

This year he’s launching Gravity, Bitstocks’ own “holistic ecosystem”, which is the company’s next step in making the crypto world easy to use for experts and non-specialists alike. Gravity is “a modern interpretation of what banking should look like in a new Bitcoin world.”

Michael has thought deeply about the theory of money – the intellectual framework through which the power of crypto can be explained: “money is just a measure of someone’s time and their skill. The more skill someone has, the less time it takes to perform a task. The more money you have, the more people you can hire with the skill, reducing the time. Money is a time measurement: the more you have, the more you condense time”.

Having been in crypto for five years – an eternity! – Bitstocks has experienced the rollercoaster ride of successive bull and bear markets. But Michael admits that the current downturn, stretching all the way back to the start of 2018, is different.

That’s because for the first time, there’s a level of “regulatory oversight” that’s never been part of the crypto world before. With more than 4000 cryptocurrencies out there, Michael predicts that “99 per cent of them are going to fall on the wrong side of regulation. So we see this as massively clearing up the market”.

In fact, Michael thinks that when it comes to the various competing cryptocurrencies, eventually “it’s inevitable that there’s only going to be one” – and Michael believes that will be Bitcoin SV (BSV). Success for BSV is all about encouraging more transactions, or “building density” in order to strengthen the network. BSV’s commitment to a stable protocol makes it the best candidate for that leading role: “you have to lock down the foundation, and then I’ll build my house on it”. All the other blockchains are “built on quicksand”.

Michael’s hopes for cryptocurrency extend way beyond London’s financial sector, and into the developing world: “Africa is a huge agenda for us here at Bitstocks”. Despite Western preconceptions, Michael says, African countries already have “the necessary prerequisites that allow them to step into modern banking”. For instance, with smartphones, you have “the hive mind of the world in the palm of your hand”.

The unique value of crypto as the basis of an economy is that “in crypto, there’s nobody to distort the value.” That’s partly because of the limited supply, for instance on the Bitcoin blockchain. That means that “as long as I’m measuring and weighting my time and skill in Bitcoin, over time, I know I’m always going to get a better return – because the value that I took initially, will be worth more four years down the road”.

Listen to more from Michael Hudson on this week’s CoinGeek Conversations podcast:

Please subscribe to CoinGeek Conversations – this is episode 9 of a weekly podcast series. Just search for “CoinGeek Conversations” wherever you get your podcasts, subscribe on iTunes, listen on Spotify or visit the CoinGeek Conversations website.

Michael Hudson explains how Bitstocks provides holistic banking experience with Bitcoin SV

Michael Hudson explains how Bitstocks provides holistic banking experience with Bitcoin SV

CoinGeek’s Becky Liggero spoke to Bitstocks CEO Michael Hudson on the launch of the company’s Gravity banking ecosystem, powered by Bitcoin SV.

Michael Hudson, founder and CEO of London-based Bitstocks, is looking to revolutionize the banking system, by simplifying it for anybody to use.

Their new product, Gravity, is aptly named, as Hudson explained: “Gravity is really a design philosophy at Bitstocks, because Gravity is everything, but you can’t see it. So it’s delivered like it’s nothing. So the philosophy behind the Gravity system at Bitstocks is how do we provide holistic experience? How do we plug all the holes that we can see in cryptocurrency and deliver it in such a user interface that makes it seamless? How do you provide everything but deliver it like it’s nothing?”

Developing the product, Hudson said, required “moving away from the nerdy, geeky narrative around cryptocurrencies,” and to actual everyday application. “Let’s just use it. Let’s make this useful, let’s make this accessible,” he said.

And all of this innovative banking for current, joint, and business accounts, will be done on Bitcoin SV. Hudson said, “You now have the ability of a very similar simulated banking experience that we’re all familiar with, and you could then spend your capital, your SV, at any point in the world that accepts Visa or Mastercard just as you would a traditional bank. You could even freeze your values as well so you’re not subject to the volatility on the market. There’s just no excuse now.”

The product is designed to be used even by those who are unbanked due to lack of requirements demanded by traditional banking systems. “They now have access to a banking-like experience that isn’t just like the past and what we’re used to. It’s better. So this is I would say the thing I am most excited about. This would be… what I use on a day-to-day basis. So we’re very excited,” Hudson said.

Bitstocks has been accepting investments, which Hudson stressed was “not an ICO [initial coin offering],” but rather for securities. He said, “This is to be done on the Bitcoin SV blockchain, so Bitcoin SV network, and we’re looking for investors who don’t just have capital. If we were doing that, we would have done that years ago. We’re looking for individuals or companies who share a very similar perspective as to what Bitstocks is really trying to achieve.”

According to Hudson, it’s not just a matter of creating a successful business. In addition, “We want to help do our role in harmonizing what we call the tools of humanity, the internet, and the internet of money now, how we share knowledge, and how we communicate and establish value. And we want investors who can help us facilitate our immediate, short, medium, and long-term goals in this mission. Help make the world an amazing place for amazing products,” he said.

After the November 15 hard fork, Bitstocks declared its support for Bitcoin SV. As Hudson explained, his company’s decision was based on “logic.”

“It’s as simple as that. There’s so much distortion out there in the market. I don’t really go on Twitter. I don’t really solicit anyone else but my own discernment. So all of the decision-making processes at Bitstocks is we sit, we look at things, we see what our position is, and we solicit our own discernment,” Hudson said.

He added, “It doesn’t matter how controversial a statement is. It doesn’t matter how it might rally the masses up. The truth will always remain the truth irrespective of the light that’s shone upon it. So it’s just a question of time. In time, people will realize, this is like the Highlander: there’s only really going to be one. There’s going to be… a plethora of different tokens, but it all needs to denominate and derive from the one internet of money, and that’s Bitcoin SV.”

Bitstocks’ Michael Hudson: For miners to feel truly secure, ‘we need genuine merchants’

Bitstocks’ Michael Hudson: For miners to feel truly secure, ‘we need genuine merchants’

In this interview with CoinGeek’s Becky Liggero, Bitstocks founder Michael Hudson explains what makes Bitcoin, Bitcoin.

Michael Hudson founded Bitstocks in 2014, when “Bitcoin was really Bitcoin.” In terms of its technical properties, such as ability to scale, Bitcoin Cash—now Bitcoin SV—continues functioning as an instant medium of exchange.

“So we’re now in a transition in our business where we are building an ecosystem. For us, if you’re building an ecosystem and you’re building a business, you want the most solid, robust foundations,” Hudson said. Bitstocks initially supported Bitcoin Cash as it has “the most solid and robust foundation for us to put our house, our ecosystem, our work on top of; however, Hudson announced at the recently held CoinGeek Week Conference that they will now use Bitcoin SV as the supporting cryptocurrency.

Practical application of the technology is most clear when this is embraced by merchants. “Merchants play a huge role, especially from a miner’s perspective as well. Miners are making huge amounts of financial investment which, over years, they need to get a return on investment,” according to Hudson. “In order for miners to feel truly secure and not flip-flop with their hash power, we need activity, we need genuine merchants. If there’s businesses built on top of this technology, then miners have the security to keep and continuing funding this initiative, funding this project.”

Hudson also pointed to initial coin offerings (ICOs), which he said were not bad in themselves. “ICOs gained a lot of traction in the space. There is some positive to ICOs. The negatives clearly are, you have a bunch of wasted energy, which is getting funded, to curate more inefficient wills than the original will. Bitcoin was the original will. So having projects being funded to create a more inefficient version is a complete, utter waste of time and resources. However, it has brought a lot of attention into the space,” he explained.

The important thing at present, he said, was to shift attention gained from ICOs, for real-world use. “What we need to ensure that we’re doing is that when this attention which is now being attracted to the space, the narrative and how they’re guiding that attention is done in a correct way. Education is there so people can now make real choices. We need to move from just speculation, and speculation is very fickle as well, especially with investors, to now real, genuine businesses,” he said.

Hudson also pointed to outlets such as CoinGeek as having “a very important role… in controlling this narrative and ensuring that the right education is being put out there, where people realize, ‘Hold on, maybe it’s not just all about this, this is real, this is not a fad, this isn’t just a way of making a quick buck. There’s real businesses being built on top of this stuff.’”

Dr. Craig Wright engages in philosophical discussion about ‘hidden math’ of Bitcoin

Dr. Craig Wright engages in philosophical discussion about ‘hidden math’ of Bitcoin

Controversial Bitcoin visionary Dr. Craig Wright recently discussed the mathematical and biological models behind the Bitcoin protocol, in a talk on the philosophy behind Bitcoin released this week.

The chief scientist at nChain, Dr. Wright expressed his theories on the philosophical and technical underpinnings of Bitcoin in conversation with Michael Hudson, founder and CEO at crypto advisory service Bitstocks, in the first episode of the Bitstocks podcast.

Dr. Wright and Hudson also discussed the universal importance of the numbers 3, 6 and 9 in Bitcoin protocols, as well as touching on the role of quantum mechanics and Wolfram 110 of cellular automation in shaping the Bitcoin network.

The discussion explores the philosophy behind bitcoin in technical detail, as well as Dr. Wright’s views on the role of Bitcoin in the wider economy. He suggested that in order to become a global commercial currency, Bitcoin would have to become a universal unit of measurement.

According to Dr. Wright, “If we want one system that can become a global commercial backbone, we need something that can be as universal as a metre. If you take a meter, it’s the same metre here as in France as it is in America. That’s really what we want for money, and a backbone to the economy.”

On ICOs and tokens, Dr. Wright drew parallels with collateralized debt obligations, and the negative impact of the so-called shadow banking industry, which proved damaging to the wider economy.

“Everyone jumping on board this idea of creating tokens and tokenizing things for the sake of it is a more democratised version of the shadow banking industry,” he said. “All the problems that allowed us to have the boom a bust in the housing market and the false economy, we’re now seeing pumped into tokens to make a quick buck.”

One of the most vocal proponents of Bitcoin—now reborn as Bitcoin SV—Dr. Craig Wright summed up by calling for greater cooperation between divergent factions in the bitcoin space, to fully leverage the global free trade benefits of Bitcoin.

He said, “What people need to start considering is not any nationalistic idea of borders, but to remember we’re all one people in one world. That means we should be willing to open up and trade with everyone. Bitcoin allows us to have that level of trade…with free trade, we choose.”

The Bitstocks podcast is available on YouTube from Bitstocks TV and Spotify.