Massive fire disrupts Chinese BTC mining operation

The BTC blockchain experienced some anomalies on September 30, and a massive disruption to a Chinese mining farm might have played a role. Early reports indicate an Innosilicon mining farm burst into flame, causing them to lose millions in hardware and possibly throwing the whole BTC network into disarray.

The fire was first reported on Twitter by user @OGTBC, and later picked up by Dovey Won who found a video of the fire:

As Wan notes, $10 million worth of hardware may have been lost in the blaze, which occurred at an undisclosed location in China. That would be a huge blow to the mining firm if true, as they had also announced the same day a delay to their next shipment of mining hardware to external customers.

Although not confirmed to be related, at roughly the same time, strange things were happening on the BTC chain. Normally, an average time in between new blocks is 10 minutes. But as this fire was ranging, the next new block didn’t appear for approximately two hours, a remarkable event that would land solidly in the top dozen longest gaps between blocks.

Ethereum World News noted that this caused a drop from 91 exahashes to 90, but could have been significant enough to have a factor on the block time. At the same time though, the difficulty of mining a new block continues to increase.

CoinGeek reached out to Ilya Bruman, CEO of Minery, to ask for comment on the fire. “We offer sincere condolences and sympathy to our Chinese colleagues. It can happen to anyone,” Bruman began. “I don’t think there is any connection between this fire and drop of hashrate.”

Bruman went on to explain the current trend in BTC hashrates:

Hashrate started to drop from 108 EH immediately after the price of BTC dropped down to 8000 USD. If the measures of fire are correct, then I assume that burnt equipment produced the hashrate between 0,5 EH and 1 EH. Which is not affecting the network dramatically.

When asked how a mining operation typically guards against this type of calamity, Bruman noted, “First of all we have fire extinguishing systems on all of our sites. Second, we secure our sites and our client’s equipment.”

Editor’s note: This article has been updated with quotes from Ilya Bruman, CEO of Minery. 

BTC and BSV chose different paths with payment protocol choices

A recent GitHub discussion amongst the Bitcoin Core team, in discussing the future 0.19.0 release of BTC, covered their plans to disable BIP70 by default. This marks a significant divergence in the paths of BTC and Bitcoin SV (BSV), and one which will cement the nature of each digital asset.

BIP70 is a Bitcoin payment protocol. It allows users to send signed payments to a recipient in a peer to peer fashion, as the original Bitcoin whitepaper intended. As recent coverage of this topic from Cointelegraph notes, BTC payment processors like Bitpay have favored BIP70 over other alternatives.

But now the Bitcoin Core team are pushing BIP21, which would move away from peer to peer transactions in favor of defined addresses. Many wallets and merchants have already made this move, but the news that the BTC development team are now making it the default standard is significant as it will hurt Bitpay’s business model.

As BIP70 is no longer the default payment protocol for BTC, more users will find their wallets unable to pay Bitpay invoices unless they specifically seek out a BIP70 compatible wallet option, or know how to alter their wallet settings appropriately. This may cause users to shy away from making BTC purchases where Bitpay invoices are found, and for businesses to ultimately drop Bitpay as their payment processor.

As BIP21 has been around for some time, there’s no question with regards to if it will work. BTC wallets and users are already using it. But as its now been embraced by the BTC developers, they are firmly signaling a shift away from the peer to peer nature laid out by the Bitcoin whitepaper, and toward something else entirely, as they’ve already done by working towards their off-chain Lightning Network.

Going in an entirely different direction is BSV. While also not sticking to BIP70, BSV is instead moving to embrace BIP270, which will be even more in the spirit of Satoshi’s whitepaper. BIP270 simplifies and extends BIP70, and ensures wallets do not have to run their own nodes, but instead use the Simplified Payment Verifciation (SPV) system outlined by Satoshi, allowing pay-to-ip transactions.

Not only would that move make BSV more adherent to the original whitepaper, but it will further reduce the burden on BSV wallets and businesses, as running and maintaining a node can be costly. Combined with better identity systems, like Paymail, users also have a better experience, as payments are made easier and faster.

BTC’s move to BIP21 isn’t really an issue unless your payment systems depend on it, like Bitpay. The BTC team decided long ago that their digital asset should be seen as an investment opportunity, and ultimately a store of value.

In choosing to restore Satoshi’s original vision with BIP270, BSV is instead choosing the path of being a digital currency that can have every day use, as the original Bitcoin whitepaper envisioned. BTC, in moving away from that with BIP21, are also moving away from Satoshi’s original vision of Bitcoin.

Bitmain might be about to decimate BTC miners

Market manipulation is a common topic in the digital currency space, often driven by concerns that whale investors may be manipulating cryptocurrency prices and trends to maximize their own profits. But could Bitmain, the mining hardware manufacturer, be preparing for a devilish scheme to crush outdated mining operations?

As the price of BTC hovers between $10,000 and 11,000, and could be a couple of big days away from its all time high, it remains popular as a mining option. CoinGeek has learned from its sources that Bitmain may be planning to take advantage of the current environment by using their resources to crush the profits of older mining hardware.

They’ll accomplish this goal by bringing as much hash to bare on the BTC blockchain as they possibly can, through old mining rigs and new, effectively cranking up the difficulty of BTC mining. Block rewards will be nearly impossible to win for those with older hardware.

For miners, and especially Chinese miners, this could be disaster. With a small leap in total hashing power brought to bear on the BTC blockchain, the increase in difficulty will devastate profits for most miners. They will be holding on and praying that electricity rates stay low to make any profit at all.

The Chinese hydro season, or when rains are sufficient enough to keep hydroelectricity flowing cheaply, can help make crypto mining more profitable. That season typically lasts into September or October. As the dams begin to dry up, electricity costs will steadily increase. That, combined with an increase in hash power, will completely crash mining profits.

The intended consequence of this gambit is simple. To stay competitive in the mining sector, operations will be forced to upgrade to the latest hardware, perhaps from Bitmain, or run their operation into the red against the hash power of Bitmain.

This could end up being a fairly profitable venture for Bitmain if it works, but our sources are worried it will be a bloodbath for the BTC mining community. Operations that can’t afford to upgrade will be run into the ground, and those that can will be paying a premium just to help Bitmain’s bottom line.

This isn’t what miners need right now. With the long crypto winter of 2018 still very recent in their memory, many operations are still working to get their head above water for all the deficits they had to run for so long. And now that BTC prices have recovered, competition is naturally making mining more expensive. Operations having to spend $0.08 or more per kilowatthour (kWh) are already likely back in the red.

If these reports are true, Bitmain might be about to cripple the mining industry for their own short term profit. Not exactly the community building move that the crypto world needs right now.

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.

BTC on a collision course with disaster

As SegWitCoin (BTC) continues to hover around the $10,000 mark and investors demand more utility from the cryptocurrency, miners are piling on hash rate to meet demand. What many are choosing to ignore though is that a crisis point for miners is coming, one that could crash the entire BTC market.

As Cointelegraph recently reported, BTC hash rates have topped 94 quintillion hashes per second, and will quickly approaching a milestone figure of 100 quintillion. This means that more mining power is being applied to the BTC blockchain, and the climb in hash rate has coincided nicely with the steady climb of BTC in 2019. A higher price in BTC is attracting miners, seeking profits from block rewards.

If you believe the promoters of BTC, this is all good news, and signifies a shift from fiat to BTC.

This celebration of the “good times” in BTC is blind to a fairly obvious dead-end that is coming in just a few months: Because BTC can’t scale, the expected May 2020 halving of block rewards will destroy miner incentives.

Currently, 12.5 BTC is the reward for successfully mining a block. After the halving, that reduces to 6.25 BTC. Although many people could hype you into believing different, halving has nothing to do with the price of the coin. This has been proven repeatedly in the past; the halving is simply baked into the price.

Even at the current reward rate, miners found it difficult to make a profit until BTC prices recovered to near where it’s currently at. When that price is halved, their rewards won’t cover their costs.

Of course, scaling solves this problem, as Bitcoin SV (BSV) is proving. With massive blocks, more transactions can fit in each block, and transaction fees are supplanting block rewards as the economic incentive of miners. Even with the next halving, transaction fees will make it worthwhile for miners to continue working on the BSV chain.

Making things worse, the BTC community will be caught in a terrible choice. If mining power drops off and hash rate declines, the network will remain congested, expensive and slow, providing no utility at all to its users. The price will decline as users find even basic use of BTC futile.

But if mining power continues at its current rate and difficulty continues to increase, the existing mining hardware of many operations will be incapable of mining new blocks, forcing them to pay for costly upgrades to continue mining a reduced reward. Then they can potentially continue mining at a loss after a costly upgrade.

This is all a consequence of BTC development continuing without a thought for mining incentives. As block rewards have been seen as enough, the entire network has been dependent on market prices, rather than any real utility.

BSV has already solved this problem by keeping miners at the top of mind. Increasing block sizes will mean more transaction fees, which will continue to incentivize miners for long to come.

Dr. Craig Wright: Understanding the message of Bitcoin halvings

The reward model of mining Bitcoin was designed not just for a purpose, but to also send a message. That’s the lesson from Dr. Craig Wright’s latest article, Zeno’s Paradoxes and Bitcoin, where he not only explains what that message is, but clarifies what it means for Bitcoin’s future, now being found in Bitcoin SV (BSV).

The Zeno Paradox Wright specifically refers to is the Dichotemy paradox, which states:

That which is in locomotion must arrive at the half-way stage before it arrives at the goal.

– Aristotle, Physics VI:9

In the context of Bitcoin, this refers to the halving of mining rewards over time. In Zeno’s context, the paradox was that an infinite number of halvings sets up an infinite number of tasks, preventing the goal from ever being achieved.

“If we take 100 as an arbitrary amount because percentages are linked to 100, we can now transform the values in a way that has meaning,” Wright notes. “You will notice the block reward in the first four years to have been at 50 bitcoin per block for the subsidy. It then drops to 25, then 12.5; and so on. And I have written them as 50/100, 25/100, et cetera for a reason.”

Wright comments that he set up halving to work this way to specifically signal exactly how much Bitcoin was already mined, and how much remained. “When the block subsidy halved to 25 bitcoin, miners knew at a glance that 50% of the bitcoin that would ever exist had been put out to market and that 25% would be remaining after the current block-subsidy period,” he writes.

What is the message meant to say? Not that halvings should create bumps in value, but rather than they won’t. It’s a signal that mining for block rewards has a lifespan, and that another motivation should take over in the long run.

Unfortunately, those who seek to keep Bitcoin as nothing more than a store of value, specifically the SegWitCoin (BTC) promoters, have flipped the meaning of halvings. “Instead of a Zeno’s paradox, some promoting bitcoin in a Ponzi-like manner arguing that the price will double every halving are subject to the Persian chessboard or the rice and chessboard problem,” he notes.

Specifically, BTC halvings have been pushed as a reason for the price to jump. On the surface, that sounds great for investors and miners alike, as a higher price would mean rewards would be worth more, assuming the price kept climbing with adoption. In practice though, as rewards will eventually halve to the point of worthlessness, without a better business model, miners will drop off, making the blockchain worthless.

The solution to this, as Wright has always envisioned, is in transaction fees. In a massively scaling model, now pursued by BSV, countless transactions take over as a new profit motive for miners, replacing block rewards entirely in the future. “Luckily, we have managed to demonstrate blocks the size of 2 GB on the Scaling Test Network (STN) and will be increasing the capacity further at a level that applications and other development teams can keep up with,” he writes. “In the coming years, we will be running blocks that are in the order of tens of terabytes in size. We will do so at a rate and cost that allow us to subsume all other transactions on the globe. We will do it more securely and inexpensively than PayPal, than Visa, than Mastercard, or than cash.”

As a final note to those who continue to push BTC as the government-averse option, Wright notes that they are totally missing the point. “Bitcoin’s value did not ever lie in subverting government or banks, it lies in Bitcoin’s efficiency,” he concludes.

Media spins Bitcoin mining story to suit their own agenda

Cryptocurrency mining is under attack once again by the media, this time thanks to a scandalous comparison. The University of Cambridge has developed a tool that shows the annual energy used by SegWitCoin (BTC) mining, and it reveals a lot of interesting insights into how the mining industry works, and how wasteful the world is with energy in many ways.

The media response has universally focused on one comparison though: BTC mining consumes more power than Switzerland. That’s certainly the angle the BBC took, and they used a lot of ink to spin this fact into a tirade against the mining industry.

While the tool’s co-creator, Michael Rauchs, clearly told the BBC that they were simply providing data for the world to take its own conclusions from, the media giant specifically chose to go to an expert that would spin this information to make crypto mining look wasteful. Alex de Vries, an accountant from PwC, was quoted by the BBC to show exactly how impotent BTC is.

In their summary of de Vries comments, BTC is shown to process fewer than 100 million transactions per year, insignificant against the world’s 500 billion and growing transactions through traditional financial institutions. He states that BTC uses more energy per transaction thank banks do.

Finally, the article also cites CO2 usage from BTC equaling that of Kansas City, the 38th largest city in the United States.

Now many of these facts can be true about BTC, which has now real use and is used as a store of value by those who are OK with the fact that it’s no longer the real Bitcoin. However, the basic facts about the mining industry, and the potential of the real Bitcoin, now represented by Bitcoin SV (BSV), are very misleading.

For starters, while BTC is incapable of the scaling necessary to make it a useful asset, BSV scales massively, with 128MB blocks already mined on the mainnet, 1.4GB blocks on the scaling test network (STN) and plans for unlimited scaling in the future.

With that scalability, BSV is not only prepared to scale to handle all the transactions of the world, it’s also capable of supporting the Metanet, the data carrier network of the future. By allowing enterprises to use the Bitcoin blockchain as a data tool, and not just a transaction ledger, BSV is providing a utility that will far outweigh its energy costs.

Even then, the energy consumption of mining is easy to exaggerate if you don’t compare it to the comparative consumption of traditional fiat financial industries. A 2017 Bloomberg article titled “No, Bitcoin Won’t Boil The Oceans” covers this well. At the time, crypto mining was estimated to consume 8.27TW per year, much less than the 59.19TW Cambridge says it does now. Elaine Ou wrote:

“That might sound like a lot, but it’s actually less than an eighth of what U.S. data centers use, 1 and only about 0.21 percent of total U.S. consumption. It also compares favorably to the currencies and commodities that bitcoin could help replace: Global production of cash and coins consumes an estimated 11 terawatt-hours per year, while gold mining burns the equivalent of 132 terawatt-hours.”

While that’s already a compelling argument that mining is relatively innocent when compared against the power consumption of fiat and gold, it doesn’t even take into account that of the 59.19TW Cambridge estimates is consumed now, the majority of that is spent on mining useless BTC and criminal dark coins. Take that consumption out, and it’s sure to look much more innocent.

Add to that several facts that BBC flat out ignores. While the world struggles with how to fight climate change, Bitcoin mining companies like Squire have helped push the growth of the renewable energy sector.

Even by Cambridge’s data, the first number on the page is mining energy production versus consumption against the world’s total figures. Mining represents 0.24% of the total production versus 0.27% of the consumption, and that’s a gap that’s likely to shrink and flip over time.

It also shows that Americans absolutely waste four times more energy than the total consumption of mining on a yearly basis, indicating that there are bigger fish to fry.

Mainstream media outlets could be forgiven for not being waist-deep in mining knowledge, and not having the knowledge to know how BSV will change the world, or how Bitcoin mining is actually making a positive difference to the world. However, when they willfully ignore data from their own sources to spin the story they want to tell, and bring in experts to back up that story, they shameful misrepresent the truth, and that’s not OK.

Web developer provides compelling case for BSV

Web developer provides compelling case for BSV

Bitcoin Core (BTC) is a sinking ship. This is the position of Philipp Elhaus, an IT project manager and Scrum Master, who penned a long blog post on the merits of Bitcoin SV (BSV). The article is a good read for anyone in the crypto industry, even those who adamantly (and perhaps a little naively) oppose BSV. As the only blockchain that has proven on-chain scaling is feasible and can be integrated without any complications, BSV continues to show that the original Bitcoin white paper was accurate and that it didn’t need to be manipulated the way it has been by other crypto projects.

Elhaus points out that BTC can only survive if it is attractive to miners, those individuals that maintain the network by verifying transactions. If those miners leave, however, the network becomes unstable. He explains, “As BTC’s block reward reduces over time, continuously more and more miners compete for an ever decreasing slice of that cake. The other income miners gain are transaction fees: Yet these are limited for BTC as the block size is fixed. This means there is a finite maximum amount of transactions ever possible per block. While the block reward shrinks, either transaction fees need to rise or the price of BTC altogether [sic]. It is to be expected that above a certain threshold, even at global adoption, the amount of people who are willing to pay fees that are 50,- USD per transaction or higher diminishes.”

The computer whiz asserts that BTC could be degraded in as few as five years, or as many as 13 years, depending on whether or not it can attract more money. However, “BTC will unlikely grow beyond the age of 25.”

The reason that this is going to happen is because BTC decided that the blockchain couldn’t scale on-chain, which is part of the reason the Lightning Network was created. However, it is more of a “band-aid” fix than a permanent solution—despite having become a permanent attempt at scaling.

Elhaus adds that the Lightning Network will never survive the test of governments, explaining, “Lightning enables Money Laundering, Terror Financing and Tax Evasion. It is a 2nd-layer tech that is based upon TOR’s onion layer principle. It doesn’t keep records and offers not pseudonymity or privacy but complete anonymity” and that running a Lightning Node could ultimately lead to the operator facing jail time.

This is where BSV comes in. In spite of a certain amount of negativity based on uncorroborated stories, it is in a position to deliver. Elhaus states, “As it’s a rather new fork and not established, BSV transaction volume is low and its supporting ecosystem very small… Yet the idea that proposes one global blockchain that sustains miners and itself through an ever increasing [sic] efficiency at confirming [transactions], and therefore making use of economies of scale, seems sound and not like a technological dead end. Therefore it can be stated that BSV’s utility is higher than those of BTC’s with a potential to increase that even more in the future.”

Crypto market daily report – June 11, 2019

Crypto market daily report – June 7, 2019

The cryptocurrency markets experienced a slight recovery on Thursday evening and Friday morning, after a fairly negative 48-hour period. SegWitCoin (BTC) climbed up to the $7900 mark after having dropped to the $7500 level on Thursday.

The general consensus is that this is a dead cat bounce, and a further drop is expected over the next few hours if turnover levels are not sustained. Bitcoin SV (BSV) continued outperforming expectations, settling at around the $197 level after having ceded its earlier gains, when it reached a high of $229 at one point during the week.

Other cryptocurrencies with larger market caps also began a slight recovery with Ethereum up by around 1% to the $248 mark having dropped to as low as $237 on Thursday. The real star performer was Litecoin, which was up by no less than 8% to the $113 level on Friday morning at press time. Ripple was also on the recovery trail and traded at around the $0.425 level or a 5% increase. EOS performed a relatively minor recovery and was up by around 1% to the $6.40 mark after having dropped dangerously close to the $6 level on Thursday.

NEO and Stellar were relatively static at the $11.40 and $0.125 mark respectively, whilst IOTA regained some of its previous losses and was trading at the $0.425 level at press time. Cardano also regained some of its previous losses with an increase of around 2% to the $0.083 level.

Digital currencies with smaller market caps also experienced a slight revival with ZIL and LINK continuing their positive trend, the former with a 12% increase whilst the latter was up by 5% to the $1.18 mark.

BCHABC remained relatively stable at just under the $400 mark, after having lost considerably over the past 48 hours when it was down to the low $370’s. ONE gave up some of its recent gains and was down by around 4% to the $0.028 level whilst TRON also lost slightly on the back of a 2% decrease to the $0.0336 level. Binance Coin was down by around 1% to the $31.40 level after having even dipped below the $30 mark on Thursday.

Crypto market daily report – June 11, 2019

Crypto market daily report – May 13, 2019

The cryptocurrency markets performed impressively over the weekend with Bitcoin Core (BTC) leading the charge and rising no less than 20% over 48 hours to touch the $7,500 mark at one point on Sunday morning. However, there was an expected correction, with the cryptocurrency dropping by no less than 7% to under the $6800 level, before recovering to the $7050 mark at press time on Monday morning.

Ethereum (ETH) also rose considerably over the past 24 hours and was over the $200 mark on Sunday morning—a level not seen since November 2018. The second largest cryptocurrency by market cap was trading at around $190 at press time or down by around 4% overall.

Other larger cryptocurrencies by market cap also showed healthy gains, with Bitcoin Cash (BCHABC) rising by an impressive 30% to reach the $380 mark on Sunday, before declining to around $360 on Monday at press time.

Bitcoin SV (BSV) was also up by around 8% overall and was trading at the $58 mark at press time with a charge to the $60 level not untoward. Ripple (XRP) was rather flat for most of the weekend, although it did regain the $0.32 level on Monday. Litecoin (LTC) was also on a bull run, touching the $90 level on Sunday before falling back to around $86 on Monday morning, or a decline of around 5%.

Stellar (XLM) was down by roughly 4% to the $0.10 level, whilst NEO continued losing ground with a 5% drop to the $9.46 mark. IOTA was in positive territory, on the back of a 6% increase, to just over the $0.31 mark. DASH was on a roll and was up by 8% to the $130 level while other smaller market cap currencies such as ETC, NANO, VET, IOST and ICX were all slightly down on Monday after having registered considerable gains over the weekend.

btc-proves-its-still-not-ready-for-mass-adoption

BTC proves it’s still not ready for mass adoption

Many cryptocurrency fans are excited about the recent jump in price of Bitcoin Core (BTC), which jumped from $4,190 on April 2 to its current price of $4,925 at press time on April 3. Proving it hasn’t changed much from its peak in late 2017, this jump in price has brought with it a few major headaches.

At the moment, 60,000 BTC transactions are sitting unconfirmed. If it weren’t the BTC blockchain, this would be incredible news, but somehow it’s not that shocking. Sticking to small blocks has meant that this influx of new money has done nothing but create congestion in the network, and the blockchain is struggling to keep up with demand.

As a result, BTC transaction fees have soared. According to coin.dance, the average cost of a BTC transaction has increased from $0.47 to $1.83. That’s just an average as well; it will cost much more to get a transaction prioritized and sent in any reasonable amount of time.

For comparison, Bitcoin SV (BSV), which has pursued massive scaling and big blocks to be ready for mass adoption, is currently sitting at under 50 unconfirmed transactions, all likely to be handled in the next block, and current transaction fees sit at $0.0034.

This is all despite plenty of time to develop the long touted Lightning Network. Either because of a lack of adoption or lack of preparation, this side chain is doing very little to alleviate the BTC from the congestion causes by increased adoption its currently seeing.

They had over a year to prepare for this breakout from the bear market, and they still aren’t ready. One MIT panel recently could not say when a Lightning Network app would be ready for mass consumption.

After a Bloomberg analyst criticized the jump in price, saying there was no good news to warrant the pump, another outlet pointed to recent good news for BTC, specifically in the Lightning Network, as reason for crypto investors to be excited. Don’t believe the FUD (fear, uncertainty, doubt), they say.

Considering the poor performance of BTC and the Lightning Network at a return to nearly $5,000, they should be welcoming any FUD they can get. High costs and slow transactions are going to drive away long term adoption and hurt the cryptocurrency world as a whole. For that reason, BTC can use all the FUD it can get.

Twitter founder Jack Dorsey: Crypto will deliver a global currency

Twitter founder Jack Dorsey: Crypto will deliver a global currency

Jack Dorsey has a lot of thoughts and plans for cryptocurrency. In a February 2 interview with Joe Rogan, the Twitter founder and CEO had a lot to say about the topic.

In a wide-ranging interview that covers topics of censorship, app development, politics and other topics, Rogan steered the conversation towards Dorsey’s Cash App, which allows users to buy and sell Bitcoin Core (BTC). Rogan asked why Dorsey’s team introduced cryptocurrency exchanges in the app.

Quite simply, Dorsey believes in a future of one global currency, if it is or isn’t BTC, and that starts in small steps. He said:

“I believe the Internet will have a native currency and I don’t know if it’s Bitcoin. I think it will be [Bitcoin] given all the tests it has been through and the principles behind it, how it was created. It was something that was born on the Internet, was developed on the Internet, was tested on the Internet, [and] it is of the Internet.”

Showing that he understands the true purpose of Bitcoin, Dorsey is focused on Bitcoin as a digital currency, not as a day-trading industry or investment opportunity. He notes that the Cash App does not allow credit card purchases of BTC to discourage users from putting themselves into debt for a sudden risky investment, and it also has controls to guard against frequent trading.

These views are contrary to what a lot of BTC supporters have argued in the past, in the face of high transaction fees and network congestion. Dorsey really seems to believe in the original Satoshi vision of Bitcoin as a digital currency, and not as a digital gold, to invest in as a hedge against the market.

To that end, Dorsey should take a look at Bitcoin SV (BSV). As the only Bitcoin to follow the original whitepaper, BSV is built to be that digital currency of the internet, and the world. It provides the stability that a serious enterprise, like Twitter and the Cash App, can put their faith in. It’s also built to massively scale on chain, and has already proven capable of sustaining 64MB blocks for 24 hours, and as much as 103MB blocks, with much bigger to come.

Dorsey admits that he’s not sure if BTC will be the currency of the future, but he expects something will take that role. He told Rogan, “We would love to see something become a global currency. It enables more access. It allows us to serve more people. It allows us to move much faster around the world.” It sounds like he might be talking about BSV.