One of the early BTC developers and a true Bitcoin specialist named Jeff Garzik is in the latest cryptocurrency news for revealing his unique take on cryptocurrencies. As Garzik noted, the flagship cryptocurrency faces a lot of challenges today – one of which is the “economic paradox” that threatens to delay the Bitcoin development.
Garzik was a guest in an exclusive interview with a news site. The Bitcoin specialist was featured as one of Satoshi Nakamoto’s earliest collaborators and a founder of the crypto startup Bloq. In the interview, Garzik admits his highly “predictable” answer when it comes to the biggest challenge for Bitcoin – which is “scaling” according to him.
However, Garzik’s statement pinpointed an even bigger problem as the best cryptocurrency news sites noted. The Bitcoin specialist said:
“The pace of innovation of the core of Bitcoin is slow and it’s a real challenge,” he told CCN from the Bloq room at Consensus 2019. “If you onboard a bunch of people on Lightning, stuff like that, the transaction fees go up to the point where [most people] just can’t afford to use bitcoin.”
What’s interesting is the fact that one of the favorite statistics that Garzik used is that an individual that earns $32,000 annually is in the top 1% worldwide. As such, he fears that the Bitcoin transaction fees are a risk for anyone who doesn’t live in the US or EU. As a Bitcoin specialist, he knows this best and stated:
“That’s the top 1% worldwide. And so that tells you that, if you have to pay $10 for a Lightning transaction, that leaves Bitcoin to [people in] the US and EU and that’s it. We just excluded the rest of the world due to transaction fees.”
In that manner, Garzik said that Bitcoin’s core layer must be scaled to reduce fees. The Bitcoin expert also talked about another problem referring to scaling technologies – the one which he labeled the “economic paradox” on Bitcoin.
“It’s an economic problem of funding,” says Garzik, who has served as an advisor to BitFury, Bitpay, Chain.com, Netki, WayPaver Labs, and more. “It’s almost a paradox. If you’re a Zcash, for example, then in every single block, 10% of the new tokens minted go to a dev team fund to create sustainability. And so that’s good for the long-term sustainability picture, but it has a downside. It’s a centralized fund, and it goes to a centralized team or whoever is holding the keys.”
With this statement, Garzik was also featured in the altcoin news, scratching the surface of possibilities for the most dominant cryptocurrency and the ones around it.
Bitcoin Retests The $11,000 Range Holding A Strong Low Volume
Bakkt BTC Futures Reached “Critical Mass” And Expected To Launch Soon
"We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH," one of the tweets which went viral on many best cryptocurrency news sites reads.As per analysis from Sam Doctor of Fundstrat, institutions and other entities in attendance were not only bullish on Bakkt but the broader Bitcoin and cryptocurrency market, too. In a recent Fundstrat research note to Twitter, Doctor explained that his first-hand experience of the event slated to be the first US regulated vehicle of its sort that is physically delivered. He pointed out to the Bakkt BTC futures, saying:
“As we have written before, Bakkt tackles many of the barriers to adoption for traditional investors seeking to expand their mandate to include crypto.”He also went on to write that there “appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch,” noting that the firm's sales team is starting to ramp up discussions with everyone from brokers and market makers. The news comes hot on the heels for Bakkt BTC futures. Earlier this year, the company made a series of hire as their "Careers" page noted. One job listing called for a mobile app developer which sparked a further discussion about Bakkt's plans post-Bitcoin futures. An excerpt from Bakkt.com reads:
“Whether between consumers and merchants or peers, the ability to conduct transactions in digital assets holds promise as a these new global currencies evolve beyond a store of value or speculative assets, and as distributed ledger technology scales. Bakkt is working with leading merchants who recognize the potential of digital assets.”Earlier reports have suggested that Starbucks may be one of the users of Bakkt's eventual payments solution which is most likely to involve Bitcoin. Currently, the Bitcoin and altcoin news show stability on the market after the wide breakout.
Bitcoin Retook $11,000 But Dropped Overnight
"If $btc goes to $100, it is game over. IT WON’T. It’s already established itself as a store of value. Stop wasting your time with these tweets and go outside and enjoy the summer. $btc is consolidating before its next move higher. Let it work for you."Hopefully the fan took the former hedge fund trader's advice because the price of Bitcoin rose about 5% at its best levels today. What's also hot in the altcoin news is Libra's pain which is seen as Bitcoin gains. The long-expected cryptocurrency and the rumors around it made a lot of waves in the community, leading Bitcoin to surge, fall, surge and fall. Even though many think that David Marcus has been the face of Libra, CNBC recently reported that a 26 year old named Morgan Beller is the actual head of strategy at Calibra (Libra's wallet) and was the main inspiration behind Facebook's crypto aspirations. The fact that Bitcoin retook the $11,000 level is also somehow linked to this. “Morgan was really the first one, at least to my understanding. She’s done a fantastic job of getting other people in the cryptocurrency communities to get on board with Libra. She has a very outsize value-add from that alone.” one researcher at CNBC stated. The Bitcoin price is off the highs on the day and is right now hovering at $10,600 on many exchanges which is why it is featured on many best cryptocurrency news sites.
Banks Are Afraid Of BTC And They Are Chasing Their Customers Away
“[Our] recent experience with RBC has been nothing short of horrible, and we just can’t deal with all the nonsense anymore.”Apparently, the user was very disappointed for a longer period of time and the banks deciding to stop serving users that make business with bitcoin was the last drop for the user. The email continues with more frustration saying:
“We need our bank to be a partner we can rely on who will help us be successful both personally and in business.”According to the client, banks are afraid of Bitcoin and the RBC was the perfect example of it. The person than listed the problems that he faced with the bank including the prolonged process involved in day-to-day checking on top of the difficulties during the process of opening an account for a family trust that runs a daycare. After sharing his story, he noted that the bank flagged him as suspicious since he owned cryptocurrencies and then he wrote:
“There is absolutely no way we can continue doing business with an institution who believes [they] can dictate what we can and cannot do with our money. Ironically, banks have been fined billions of dollars over the last few years over this.”As noted in the latest cryptocurrency news, Anthony Pompliano’s tweet received more than 3,000 likes and 900 retweets.
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- Bitcoin Retests The $11,000 Range Holding A Strong Low Volume
- Facebook’s Head Of Blockchain Expects Libra To Be Governed By Swiss Law
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