Forbes: Fail of SegWit2x Shows Bitcoin is Digital Gold

Kyle Torpey, Bitcoin writer at Forbes believes that SegWit2x failure proves that Bitcoin is a true digital gold
13 November

Signatories to the New York agreement on the implementation of the Segregated Witness protocol and the increase of block size refused to implement the hardfork due to the lack of consensus within the community, and this proves that the basic bitcoin protocol is digital gold, and not just an improved version of PayPal or Visa payment systems. Kyle Torpey writes about this for Forbes.

Part of the community considers bitcoin as an asset of a new class, unattainable for governments, banks and third parties. Others consider bitcoin to be an innovative payment system.

Representatives of the first camp oppose the controversial changes in the system, in order to avoid the risk of non-fulfillment of obligations of one of the parties associated with the preservation of value in a digital asset. Their opponents see in hardfork the opportunity to increase billing performance and reduce transaction fees.

In addition, a new version of PayPal can indeed be developed on top of the basic bitcoin protocol, but only if the community stays true to the idea of ​​digital gold. Otherwise, you can not create a more secure system based on less secure.

Torpey is convinced that bitcoin is digital gold, but you can still run an improved and reliable version of PayPal on top of Bitcoin.

The most likely version of the "improved PayPal" is the Lightning Network technology, which allows you to send cached transactions using special payment channels, and not directly through the block system. In this case, the detachment acts as a "court" for resolving disputes.

In addition to the two-tier payment solution, the Lightning Network also contains a number of compromise technological characteristics in the context of centralizing confidentiality and reducing transaction costs.

For example, representatives of ZCash presented a draft of a reliable payment system on top of the bitcoin block or ZCash blockchain, which will not be able to freeze users' funds and will not know about the purpose of transactions.

Although the idea of ​​blockchain is to eliminate intermediaries, Kyle Torpey believes that, perhaps, one should think about the advisability of developing a centralized model over a decentralized basis. Such a payment system will not be able to steal users' funds, prohibit the conduct of transactions or establish surveillance over network members.

Crypto currency is not suitable for making payments, unless its liquidity is provided by those who consider it as a means of preserving value. With the growth of liquidity, the probability that one transaction will greatly affect the price of an asset decreases, as volatility decreases.

A more secure payment system will be developed precisely on the basis of a highly liquid asset.

Israel will reveal the status of cryptocurrencies in the next six months

Now in Israel people should make their decision on Bitcoin and it will be claimed soon
20 November

 

Israeli Ministry of Finance announced they will do some research on Bitcoin and cryptocurrency together with accounting firms.

This decision came from meeting initiated by Finance Minister Moshe Kahlon. At the meeting they realized Israel wasn’t prepared to accept cryptocurrency.

We are leading this with the minister and very happy to see he is all for it. The committees will begin their operations very fast. In my opinion, we will see results on the ground in up to six months.

 

Moshe Hogeg, Israeli serial entrepreneur.

The situation with uncertainty on Bitcoin mentioned above created a lot of trouble for businessmen and users on cryptocurrency.

For example, in June Tel Aviv district court announced that banks may reject Bitcoin ventures because of the inability to verify the KYC and AML. Also Israeli Tax Authority decided that if Bitcoin is not a legal currency, the sales of BTC will hurt adoption.

Although not everyone supports the recommendations of researchers. In Israel there is at least one high-ranking placeman who is convinced in pernicious impact of cryptocurrencies for economy and many share his view.

The Head of Israel Securities Authority (ISA) expressed his opinion that Bitcoin and ICOs should be strongly regulated. ISA instituted its own committee to assess regulations on Bitcoin and other cryptocurrencies.