The collapse of Blockstream / Core - Bitcoin Forex Loans Insurance Busines

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Saturday, September 30, 2017

The collapse of Blockstream / Core

We all know the story of Newton and the apple, as it is told to children, is not exactly true to what happened that summer afternoon in 1665. It seems, however, that is not entirely apocryphal. According to Isaac Newton's biographer-and eyewitness of-fact, the great physicist was indeed an apple fall from a tree, and that minimum event triggered in his mind the chain of thoughts that would result in the general theory of gravitation . Although the apple never hit Newton's head, I think that the persistence of the myth is due to the strength of its symbolic content. Sometimes reality hits us on the head and forces us to reconsider notions we had for certain. Sometimes our mind needs that blow from the outside world to wake up, shake off the dust and engender an idea-or accept-able to change our relationship with him.

Saving astronomical distances, yesterday I had a "moment Newton" when I wanted to pay in bitcoins maintaining an Internet domain. The cost: $ 10; rate: equivalent to 3 dollars. If Bitpay accept Bitcoin Cash , I thought, I would be paying the same price but with a rate of about a penny (which was normal before the assault to Bitcoin ), and not have to make any previous operation to acquire, since I have already my bitcoins Cash (like all owners of bitcoins " pre fork ").

I'm obviously not the only unhappy with the current situation: if I stopped to think twice before paying that rate, what is left to the thousands of millions of people living on less than $ 3 per day? And small investors who buy bitcoins weekly to preserve the value of your savings? And the owners of mining pools to be sent bitcoins hundreds of times a day? And entrepreneurs who sell items whose prices do not exceed 10 or 20 dollars? How can Bitcoin continue expanding and increasing its capitalization with a user base not only stagnant but waning? What insult not dedicate them Robert Metcalfe to Blockstream boys , he had invested in bitcoins? These questions made me when I came up with a scenario that could well be realized in a relatively short time ...

Suppose that in the near future Bitpay , or some anxious competitor for eating lunch Bitpay- decides to accept Bitcoin Cash parallel. The first thing I would do is use my bitcoins Cash used for payments effected by Bitpay. But in time I would be encouraged to acquire bitcoins Cash reserve (in exchange for bitcoins Core ) to meet future payments without leaving an offering at the altar of Blockstream an increasing percentage of the value transferred . This strategy -multiplied by thousands, or millions, of forced to flee the chain dominated by users cryptoleninistas , and enhanced by thousands, or millions, of investors supporting your money A Bitcoin Bitcoin escalable- push a Core increasingly expensive, cumbersome, congested and unpredictable to a feedback downward spiral, and accelerate the arrival of flippening (the success of the branch created from a fork , due to the sudden transfer of value from Bitcoin Core).

The accumulation of distortions and inefficiencies caused by the constant interference of the Blockstream boys can not continue indefinitely. Even the most devout believers in the infallibility of the Politburo has limited economic destruction tolerance, especially when experienced firsthand in the form of an increasingly expensive and poor service. So the flippening is guaranteed, but will come before or after activation of Segwit2x in November this year? Is Bitcoin will favor Bitcoin Cash or 2x? We do not know; nobody knows. All we know is that in a free market services tend to improve and become cheaper over time, and Bitcoin is designed to economically punish any attempt to centralize consensus .

That Bitcoin would be attacked in one way or another is something that has always been very clear anyone who is not extremely naive. Well, now we know how the masters of fiat money have proposed curb Bitcoin, but also know how to fail. It must be frustrating for boys Blockstream check that can not avoid competition arising from any branch in response to their statements, nor prevent the fundamentals of better implementation of Bitcoin eventually attract the bulk of the value .

As a wrecking ball, each fork is thrown against the wall erected by the cryptoleninistas around their nefarious Gulag. Sooner or later, users, entrepreneurs, miners and investors, as well as all supporters of the separation between money and state will flee from Bitcoin Core driven by the same desire for freedom that inspired at the time to those who fled East Germany after the the fall of the Berlin Wall.