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 2017   1868

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.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   105

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.
 

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.
 

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.
 

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 
 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.