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Bitcoin has always had a controversy between those who say it’s the future and others who say it’s a pipe dream. But now Bitcoin supporters are fighting with each other and going for what looks like a power grab. The price of Bitcoin plummeted by 25% because of this infighting.
Digital gold or electronic cash neither is wrong or right, just different strategies.
Those on the side of digital gold would rather have Bitcoins capped with no further mining and have other networks that act more like cash and linked to Bitcoin. Similar to how US dollars are backed by gold. This ideology being supported by Bitcoin Developers.
While the supporters of electronic cash would prefer Bitcoin to act more like the federal reserve and simply print more money. This being supported by Bitcoin Unlimited.
The developers and the miners both need each other but have opposing incentives, so they don’t fully trust each other. “Bitcoin is one of those things where nobody wants to be seen as controlling it,” says Bitcoin developer Andrew DeSantis.
The Current Situation:
The plummet in price was caused by a fear that a small group of people from one of the factions would gain too much control rather than the balance of competing interests.
Roger Ver and Jihan Wu are supporters of Bitcoin Unlimited which has been accused of trying to acquire enough control of Bitcoin that they would then make previous versions of Bitcoin incompatible. Both have denied this and called it a conspiracy.
The Ideological disagreement has become an all-out power struggle
DeSantis and other bitcoin developers have brought up the possibility of a nuclear option. They can change the Bitcoin software so that it no longer works on the hardware currently running it. It would be a catastrophe for companies that operate within the world of Bitcoin.
Peter Todd, a bitcoin protocol researcher who is aligned with DeSantis and Core. “I think the most likely scenario is that nothing will happen. I really mean nothing.”
But Eric Lombrozo, a Bitcoin Core developer, says, “I’d rather that not happen. I think it’d be dangerous for the network to go down that route. It’s basically a warpath.
Many people have heard about Bitcoin operating in the shadowy corners of the Internet. Bitcoin is an electronic currency. The value of a single Bitcoin began as only a few cents. Over the years, this price surged to thousands of dollars, and the value of a single Bitcoin has bounced around ever since. It’s important to note that the value of the currency is not backed by any government or corporation. The value of a Bitcoin is only determined by what another person is willing to pay for it. This makes investing in Bitcoins both a risky and exciting venture.
However, the days of Bitcoin being admired from the sidelines of investors may be ending. This is because the Depository Trust and Clearing Corporation will adopt key parts of Bitcoin’s technology. This New York corporation has the responsibility to record nearly every stock and bond trade in America. Naturally, this is a difficult task. Executives at the corporation now believe Bitcoin may be able to help out.
It should be stated that the Depository Trust and Clearing Corporation will not be actually using or investing in Bitcoin. Rather, the corporation will be adopting technology inspired by Bitcoin to keep track of trades more effectively. Bitcoin is appealing to investors because the electronic currency can not be traced. Instead of a central location storing all of the data on Bitcoins in the world, each Bitcoin carries a code that is modified by a network of computers around the world each time it is traded. Executives at the Depository Trust and Clearing Corporation hope a slightly modified version of this tracking technology can be used to track stock and bond trades.
What do you think of this news? Do you think it will increase the effectiveness of stock and bond trades? Let us know!