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   718

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.

Miners Arrested in 2 Chinese Cities For Power Theft

Six people were detained in Tianjin and two in Wuhan
25 April 2018   91

Bitcoin miners were arrested in two Chinese cities on charges of stealing electricity. This is reported by CoinDesk.

In the first case, 6 people were detained in Tianjin. The suspects used 600 devices for mining bitcoins that were connected to a local substation. The police claim that the connection was made bypassing the counters.

The investigation was initiated after one of the electric power companies discovered a discrepancy between the actual and claimed consumption of electricity.

The police seized all equipment for mining, as well as 8 powerful fans.

Events are taking place while China continues to play a dominant role in the mining of bitcoin, despite the pressure on the cryptocurrencies. As Xinhua notes, this case of electricity theft turned out to be the largest in recent years.

According to another report, which appeared today on the website of the Supreme Prosecutor of China, two more suspects were detained in Wuhan. They also stole electricity.

The detainees used empty stores since March 2017 to house miners and did not pay for electricity, as did the defendants from Tianjin.