Sunday 1 October 2017

Why Coinbase Will Exit the NYA (Bizcoin)


The below arguments apply to all other NYA signers (like Bitpay), as well. I'm just using Coinbase because it is the largest.(Scenario: BIZCOIN attempts to steal the Bitcoin network, outright, by capturing a majority of economic nodes.) Many people claim Coinbase has millions of customers - which gives them enough economic nodes to allow BIZCOIN (2X) to take over the Bitcoin network. This is a fallacious argument. While Coinbase has millions of customers, it does not run their transactions through millions of nodes. Further, it's doubtful Coinbase has the time, resources, or conviction to spin up enough economic nodes to make a difference. And finally, it's highly doubtful that Coinbase could spin up enough economic nodes to make a difference (even if it was inclined to). Remember, the entire rest of the entire world also runs economic nodes that will continue to support Bitcoiin Core software, and will reject any 2X blocks that miners seek to validate. Coinbase would be risking its very viability by taking this gamble. This is especially poignant when you consider that Jeff Garzik refuses to implement replay protection on BIZCOIN.Charlie Lee, who was one of Coinbase's highest-ranking technologists for years (until 2017) - and who is also the creator of Litecoin - came out firmly and publicly against BIZCOIN this week. Given this development, does anyone really think Charlie believes Coinbase has enough influence over the Bitcoin network to capture a majority of economic nodes? I wholeheartedly believe Charlie knows exactly what's going on, or he wouldn't have so strongly spoken out against BIZCOIN. In other words, I don't think Charlie believes Coinbase (and any combination therewith, including Bitpay, Shapeshift, etc) will have enough economic nodes to capture the Bitcoin network (and the Bitcoin brand). If anyone knows how much influence Coinbase has (or doesn't have), it's Charlie Lee.If Jeff Garzik does finally admit that he really must implement replay protection on BIZCOIN, he is, de facto, admitting that BIZCOIN has been, is now, and will forever be an alt-coin (which is true, regardles of what Jeff does, by the way). In this case, we can safely look at Coinbase's treatment of BCASH from the very start: Coinbase does not have the resources, time, nor inclination to support weak, contentious, problematic alts (like BCASH and BIZCOIN), and has consistently refused to support them.No matter the scenario, I STRONGLY RECOMMEND no one keep their Bitcoin at any third-party exchange or remittance service (like Coinbase, Bitpay, or Shapeshift) at any time. If you do keep your Bitcoin with these providers, you do not control your private keys. If, however, you insist on keeping your Bitcoins with said providers, I cannot emphasize enough that you should, at the very least, remove your Bitcoins from exchanges and remittance services until this hard fork is cancelled or completed. via /r/Bitcoin http://bit.ly/2yBHZ0G

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