Tuesday 1 March 2016

Why the hate for Bitcoin as a settlement system?


We all want a censorship-free store of value and a payment system, but it looks likely that on-chain transactions can't deliver both of these ideals together.A payment system that scales properly can be built on top of Bitcoin, be it the form of payment channels such as the Lightning Network, or as a sidechain (federated or not). And you'll be able to chose one of a multitude of sidechains depending on your needs (speed/security/locale).Why are people so concerned about lack of on-chain scaling? Are they worried that their Bitcoin investment will suffer?Well, imagine that Bitcoin is the world's settlement system that all other blockchains are anchored to. It's gold 2.0. It's held as a reserve currency by governments around the world. It's a worldwide ledger that is the backbone to $trillions of global trade. How much would a single bitcoin be worth then? A lot more than it is now that's for sure.And you could still be a part of the network by running a full node, or earning fees on the Lightning Network if it comes to fruition. You'll be able to do this on a Raspberry Pi that runs 24/7 using very little power and a bandwidth that won't disrupt your 4k Netflix viewing come 9pm. via /r/Bitcoin http://bit.ly/1oNaTFW

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