Congratulations are in order, we did it! Segwit activates with over 90% miner's consensus!
We're dedicating this News Round up commentary to Segwit and Lightning Network to give a little insight as to why the entire bitcoin world is in celebration mode.
Instant transactions and no fees are coming to Bitcoin!
We've seen a lot of energy from (BCH promoters) these days trying to convince people that bitcoin is unusable for small (micro) transactions. That's not true since Segwit finally Locked in last night, enabling "Lightning Network"(LN) and LN implementations which have been waiting in the wings for SegWit to activate for almost two years now to go live.
Let me remind you what the Lightning Network is all about, most people still don't understand what practical solutions LN is bringing.
Let's look at Starbucks. Instead of throwing every coffee purchase onto the blockchain, it opens a channel that customers can pay through and at the end of a day (24hrs) it settles all transactions on BTC. You however, will not open an LN channel between two people for one TX. You don't have to open a LN channel with everyone, you just need a channel open with an entity that already has a channel with the entity you want to exchange with. And this chain can be as long as it needs to be. Channels can have many uses, one of them being a debit card, one channel could be VISA, another Mastercard. (That's only 1 specific use case for LN).
Bitcoin is kept decentralized+secure. Transactions (TXs) are free TXs are instant. You still have the option to pay miners a fee to use the blockchain to do big TXs.
Scalability is exponential, not linear anymore, Bitcoin cash promoters are trying a marketing push right now because they know once LN is up and running, we are gonna look back at the 1.0 on-chain bitcoins as old deprecated technologies, dinosaurs for day to day transactions.
Keep in mind that the mining rewards are temporary, at some point, Tx fees will have to pay the miners (At 5 tx/second, or even 50 tx/second with 10x blocks, it's not gonna be cheap! VISA alone is averaging 2000 tx/second).
The Lightning Network means instant and free transactions for Bitcoin, and new applications will be coming online within a few weeks.
Harvard Researcher - Based on Moore's Law Bitcoin Will Hit $100,000
Dennis Porto, a Harvard researcher, has recently told Multiplex founder Brian Roemmele in an interview that based on Moore's law, bitcoin price will surpass the $100,000 mark.
Moore's law, named after Intel co-founder Gorden Moore, refers to the finding of Moore in 1965 when he noticed that "the number of transistors per square inch on integrated circuits had doubled every year since their invention." Essentially, Moore's law demonstrates the exponential growth of technology and the rapid rate at which the technology market is expanding.
Like Intel's integrated circuits and Nvidia's microchips, bitcoin has rose in value at an exponential rate since early 2009. It has consistently been the best performing asset and currency in the world throughout the past 8 years, with the exception of 2014. According to prominent Wall Street strategist Tom Lee, bitcoin is en route to become best performing currency and asset again by the end of 2017.
Here's Why Bitcoin Rose More than $1,000 in Two Months
Bitcoin is the world's most popular cryptocurrency, and its value continues to reach new heights. Here are a few reasons this relatively unknown digital coin was able to make the climb from obscurity to the mainstream consciousness.
So far, 2017 has been an eventful year for
Bitcoin Price Might Exceed $1 Million, More Millionaires in World Than Bitcoins
While sources differ on the number of millionaires in the world,
Credit Suisse estimates the number at about 35 million. This figure accounts for all "financial and nonfinancial wealth," including assets, collectibles, and homes.
This is a remarkable number when compared to the total number of Bitcoins that will ever exist. While there are roughly 35 million millionaires in the world, there will only ever be a maximum of 21 million Bitcoins. That's right--there will never be enough Bitcoins in existence for every millionaire in the world to own even a single one.
Why is Bitcoin valuable?
While you let that thought sink in, let's consider what gives Bitcoin its value. Granted that there are numerous features we could cite, including a global network, an immutable Blockchain and a means to transfer wealth from one person to another without ever involving a middleman.
These are all fine features, to be sure. But what really makes Bitcoin valuable are two properties: scarcity and authenticity.
Despite scaling issues with Bitcoin, it is still considered the leading cryptocurrency in the world. It continues to surge and expand as investors get enticed by the possibility of massive gains in a short period of time. Even more promising are Bitcoin's long-term prospects.
Bitcoin keeps on surging
Investors love Bitcoin because it has been providing a significant and fast return on investment. They have been scrambling to get their hands on Bitcoin, or to gain exposure to it through the Bitcoin Investment Trust. The Bitcoin Investment Trust trades publicly under the GBTC symbol and offers investors exposure to Bitcoin without the challenges of acquiring and storing the currency.
Bitcoin is currently trading in the $4,000 range. According to a recent presentation made by the Bitcoin Investment Trust, as of July 31 each share of GBTC represented 0.09258535 Bitcoin. GBTC is currently trading at about $684 per share, equalling about a 41.5% premium..
The Battle Continues Between Bitcoin and Bitcoin Cash
The less than one-month-old digital currency
Bitcoin Cash recently experienced a significant reduction in its mining difficulty following a difficulty adjustment. The code specifies that if not enough blocks are found in a certain period of time, a difficulty adjustment will occur.
As a result of this 60% reduction in difficulty, the cryptocurrency temporarily became more profitable than Bitcoin to mine. Bitcoin Cash, for a time,
attracted nearly 40% of Bitcoin's miners.
Because of the huge surge in hash power and the low difficulty, Bitcoin Cash's network produced the requisite 2016 blocks very quickly, and now another difficulty adjustment has occurred. Bitcoin Cash is now much harder to mine and is less profitable than mining Bitcoin. Miners have now abandoned Bitcoin Cash in droves, causing block times on the network to exceed six hours.
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