The Truth Behind One of the Biggest Debates in the Crypto Community Today

Episode Highlights:

  • 00:00 Introduction
  • 00:29 Bitcoin Fork
  • 01:26 Bitcoin Core Vs. Bitcoin Cash, Which Is The Original?
  • 02:46 Bitcoin Cash Trading In The Market
  • 03:34 Bitcoin Cash And Bitcoin Core’S Blockchains
  • 05:23 Bitcoin Core Is Gold
  • 07:14 Lightning
  • 11:08 Articles On Lightening Networks
  • 13:08 Who Is Behind Bitcoin Cash?
  • 15:43 Has This Been Planned All Along?
  • 17:41 Your Thoughts And Comments

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Transcription:

00:00 Introduction

Hey guys what’s up again, it’s Dan for cryptoamacho.com, and today I have a topic I want to talk about that’s been intriguing to me for a long time, it’s been kind of bugging me for a little while and it’s definitely a very debatable and controversial topic but I’m very interested in it because it has some significant or profound impacts, it could, depending on what happens through 2018. I’m talking guys about Bitcoin core and Bitcoin cash and the debate between the two coins.

00:29 Bitcoin Fork

so, if you guys remember back in August of 2017, Bitcoin had an initial hard fork, and what that means is that Bitcoin essentially split into two, and the remaining was Bitcoin core and Bitcoin cash was the newly created blockchain supposedly that came out from this hard fork that happened in August. Since then we’ve seen highs and lows on both coins, if you go to look at Bitcoin, we’ve seen, since that fork has happened, we’ve seen the price of big one go all the way up to twenty thousand, now all the way down to about eight thousand-ish, it went down to about seven thousand today. Bitcoin cash very, very similar, when up to about forty-two hundred, now down about a thousand, went down to about a thousand just a few days ago. Both coins had gone up tremendously and have dropped about 70% since their top, since they’ve been at their high for the year. And that was all really happened in the last, let’s say, two months it’s happened.

01:26 Bitcoin Core Vs. Bitcoin Cash, Which Is The Original?

And now there is still an ongoing debate on which blockchain is actually the original Bitcoin, which one is Bitcoin? Is it Bitcoin Core or is it Bitcoin cash? And I’ve been watching how this plays out in the last several months, since August. In August I had no idea, what is this?  What’s going on? I had no idea, I got some free Bitcoin cash, so forth and so on, just like everybody else, if you own some Bitcoin, you got some free Bitcoin cash, and I’ve been watching how this plays out. And the more and more I watch how it plays out it’s becoming very, very evident to me that more and more and more service providers, application or app creators, influencers, exchanges, they’re all starting slowly to support and accept and adopt Bitcoin cash. Now there’s something to that, for me, that says there’s something to this Bitcoin cash, there’s something to the technology, there’s something to what’s going on in the market, otherwise, why would all these different people start accepting and creating applications and building out infrastructure for coin cash. That’s kind of point number one, so whether or not you’re an ideologue and you believe that Bitcoin core is the One and Only True Bitcoin, the original Satoshi Nakamoto vision, so forth and so on.

02:46 Bitcoin Cash Trading In The Market

it doesn’t really matter just look at what’s happening in the market and you can clearly see that more exchanges are adopting that Bitcoin cash, more applications are being built on bitcoin cash, I mean I can name a few, Changelly, Bitpay, Binance, Bitfenex, Bittrex, all the exchanges are now accepting it, they’re now creating more trading peers for Bitcoin cash if you just look at the BCC, you’ve got trading peers here, you’ve got trading peers here, you’ve got trading pairs all over the place. If you look at BCH, which is another symbol it goes by, even more trading peers, and it’s becoming more and more clear that Bitcoin cash is being more and more accepted over the different cryptocurrency communities and so forth. There is still a very, very significant debate going on about what is the true Bitcoin, what is the true Bitcoin, is it Bitcoin cash or Bitcoin core?

03:34 Bitcoin Cash And Bitcoin Core’S Blockchains

One other thing to point out here, which is interesting to me, is just purely looking objective look at what each of the coins can actually do, and I know for Bitcoin core there’s going to a lot of people that say you know the lightning network segregated witness, they fix all of these red X’s right here, may be true, that may be true to be fair and I’ll go into that just a second here, but just looking at the blockchains themselves, just looking at the cryptocurrencies themselves with no other layer on top, no other layer attached, just the currencies themselves, just the blockchains themselves, here is how Bitcoin cash and Bitcoin core stack up against each other, and I know this is debatable but just hear me out here. So, Bitcoin cash has a green checkmark for all of these things, low transaction costs, fast peer-to-peer transactions, reliable transactions, decentralization of the actual blockchain, open source code, so forth and so on, digital currency. Bitcoin core, on the other hand simply does not have the same level of features, capabilities, characteristics that Bitcoin cash does, just purely looking at the blockchain, it is very slow to transact, it’s very expensive to transact, it’s not really worth transacting anymore. If you guys have ever you know gone to Coinbase and bought Bitcoin core and Bitcoin cash and have tried to move them from Coinbase to an exchange, like Bittrex, Bitfenex, whatever, you’ll notice that Bitcoin core is ridiculously slow. I’ve had to take over twenty-four hours to literally make a transaction from Coinbase to Bittrex, to make a transaction or transfer of funds from one exchange to the other, it’s literally taking over twenty-four hours and that is absolutely ridiculous given the market that we’re in.

05:23 Bitcoin Core Is Gold

They claim that Bitcoin core is digital gold, digital gold or the new gold which is fine. Traditionally gold has been a storage of value, it is something that has held value over a long period of time although it’s very difficult to transact, you can’t take gold to the store and buy milk, you just can’t do it, so it’s a little bit harder to transact with, to sell it, then get the money, then you go to the store and buy something. So, it is a good storage of value, it has been for thousands of years but very, very difficult to use. Now Bitcoin core supporters are claiming that’s what the mission of bitcoin is, is to be a storage of value. That’s not necessarily what Satoshi Nakamoto envisioned when he labelled on his white paper peer-to-peer electronic cash. That is not what Bitcoin core is today and if you guys have even just tried to use Bitcoin itself, it’s very, very clear that it is not going to work as a currency, it’s just not going to work. In terms of a storage of value, I mean all you really have to do is go to the exchange and, I don’t know about you, but gold does not fluctuate this much. If you want to store a value somewhere, you do not put it in a place that fluctuates 20, 30, 40% in a single day. If you were to hold or put one hundred thousand dollars in Bitcoin as a storage of value in December and you thought you are going to store my value, just as I would buy gold, you would be you know out about sixty grand now today, within two months. So, storage a value maybe, maybe eventually Bitcoin core will become a storage of value but today, absolutely not! I would not trust my money in Bitcoin to act as a storage of value, I just wouldn’t. I’ve done it and I’ve lost money doing it, so I systematically take money out of Bitcoin because I don’t want it to fluctuate and lose money.  Is that a good of value? Absolutely not!

07:14 Lightning

So now proponents of Bitcoin core claim the lightning network segregated witness is going to fix all of this, so all these X.’s that are red are going to turn green, that’s what everybody is touting. Lightning is going to be the saviour of the world. Well, the first thing I’d have to ask myself is how many applications, how many you know companies are now embracing and accepting and adopting the lighting network. It’s actually been a lot slower than people have anticipated, not as many people are doing it, it is starting to pick up steam a little bit and I’ve noticed that the transactions are getting faster and faster, Coinbase has accepted it, so the transactions are getting a little bit faster, still not that fast but they’re getting faster. Let’s take a closer look at the lightning network and what the lightning network really is, and I’ve always suspected that lightning network will be, essentially a centralization layer on top of Bitcoin. I’ve asked this question to many people in communities on Reddit, Facebook, Twitter and they all say no, the Lightning network is completely decentralised, just as Bitcoin core itself. In reality that’s really not the case, it’s a sham, it’s complete utter nonsense. Look at this article, look at other articles and study what Lightning network is and you will come to terms with the fact that Lightning network, it is simply a settlement layer on top of Bitcoin core, it’s on top of it, it is not part of Bitcoin core, it’s a settlement layer on top, similar to what banks do with Visa, similar to what other third-party mediators do to verify transactions in any financial or monetary network and system. It’s a settlement layer, that means that it can be centralized, look at this article ‘lightning network centralization leads to economic censorship’, which completely goes against what Bitcoin is supposed to do, to act as a peer-to-peer electronic cash that’s fully, completely and utterly decentralized so that no government regulatory agency or monetary system can regulate it, that is the point. So now look at this article real quick, it seems that the realities of the lighting networks limitations are being accepted and now narratives are forming to justify the continued morphing of Bitcoin into a settlement layer, for example, and it gives an example of how that’s actually happening on Reddit, you can go read that yourself. ‘Large Bitcoin nodes versus large lightning hubs’,  to play devil’s advocate myself, the author of this article says ‘the argument goes like this, a large expensive Bitcoin nodes are just as bad as a large lightning network payment hubs, so they’re comparing the two, a large miner can decide not to include your transaction in block just as a payment channel can decide not to route your payment, to that he would say you got one part of that wrong, a large miner or even a majority cartel of miners cannot effectively censor your transactions because any miner, any and that’s key, any miner can include your transaction in the block, it does not have to be a specific miner, so that miner cartels, they don’t have to be the ones to verify the transaction, it could be me, in my garage to verify the transaction, that’s a very, very important point guys, on the lightning network the same is not true, lightning networks can effectively censor your transactions because not any hub can route your payment. If you have a set of coins in one specific channel, it has to be routed using that specific channel. That, in and of itself, centralizes the lightning network solution. That’s the point that’s why it’s not a decentralized system, right here you can see, you can read it. Go read other articles if you don’t believe this one because it’s from Bitcoin.com, go read other ones, really, seriously do, I would love to know the other side of this because I am just not seeing it and I’ve been looking at this for a little while.

11:08 Articles On Lightening Networks

Side note, we’re not talking about the 51% mining monopoly attacks here, just to clarify I’m ignoring the situation…and whaling OK, yeah there are some issues, obviously with the cartels, which we can get into as well. We can safely ignore that educates because OK. Why can’t you just use censorship free’ or in other words as long as re-org attacks aren’t consistently happening, some miner will eventually get your transaction in a block and no one can stop that, that’s on the Bitcoin cash side of things, guys. So, remember, lightning network is not permission less, the problem isn’t necessarily you finding a censorship-free hub, but rather being able to route your payment to others who have it, for example mega bank A, B. And C all decide to become lightning hubs, they all acquire customers and have channels open between the three banks, this allows customers from any of the banks to send money to other customers of those three banks, you being a freedom-loving individual decide to open a channel with an anonymous hub only known as T35G7, Guess what mega banks A, B and C don’t want to open a channel with T35G7 so you can’t send any of your customers since there’s no available route. I think it would be a matter of time before a system that either falls into complete censorship or fractures. Even if you believe the probabilities of these outcomes are small, it should be considered as a deal breaker. This is very, very important guys, this example on this point itself. This is a way that big institutions that have an invested interest can bypass the decentralization of bitcoin itself, of any blockchain itself, by adding a settlement layer on top. If any cryptocurrency needs a settlement layer on top, if any cryptocurrency needs a centralized element to its functioning, it’s a sham, it’s bogus it’s not truly, truly a decentralized free cryptocurrency and cannot, ultimately be a peer-to-peer electronic cash system. Very, very important and I want you to know that.

13:08 Who Is Behind Bitcoin Cash?

OK so next, what is behind, who is behind Bitcoin cash. I’ve kind of come up with a few. So, the main people behind cash, in terms of influencers, recently Gavin Andresen, in who’s one of the earliest, earliest enthusiasts, coders-developers in Bitcoin, he’s talked to Satoshi Nakamoto over email, he’s one of the founders. He’s recently come out and said that, and I think I have an article open right here, he’s recently come out and said that, I Google who supports Bitcoin cash and I think one of the first results that came up, I  thought it was in here but it says Gavin, I mean you can just type in Gavin right and it’ll come up. Gavin Andresen throws support behind Bitcoin cash, that happened in November so he’s now a supporter of it. John McAfee has long time been a supporter of it.  Roger Ver has taken a lot of heat, he’s been one of the original founders of Bitcoin, and he’s taken a lot of heat for it, he is pushing that Bitcoin cash is the real Bitcoin itself. Charlie Shrem is behind Bitcoin cash. Craig Wright is behind Bitcoin cash, Jihan Wu, one of the largest miners is now behind Bitcoin cash, the guys from Dollar Vigilante are now behind Bitcoin cash. The National Institute of Standards and Technology, which is a government scientific agency, recently published a paper coming out in favour of the Bitcoin cash and then I see Paper claims ‘Bitcoin cash is technically the real Bitcoin’ and you can read through this article yourself but it does give scientific evidence of why Bitcoin cash is truly the real Bitcoin and it came from the original blockchain and it is the original blockchain, to give credence again that Bitcoin cash is legitimate. So, all of these things are now coming to a head, in 2018, it’s really, really going to come to a head of what is really the real Bitcoin, is it Bitcoin core or Bitcoin cash? Maybe it doesn’t even matter, maybe both coins going to exist in the long run and they likely will exist in the long run, but what’s going to happen to the price? What is going to happen to the price of Bitcoin Core and the price of Bitcoin cash? Bitcoin cash, I’m seeing predictions Calvin Ayre predicts Bitcoin cash price of ten thousand dollars in May. John McAfee has predicted a very high rise in Bitcoin cash as well. Government institute claims Bitcoin cash is the original, you know all these different articles coming out now to support Bitcoin cash.

15:43 Has This Been Planned All Along?

I’ve got to wonder, has this been planned all along? Has there been a hijack of Bitcoin core and Bitcoin cash is now really the real Bitcoin and has this been known all along?  Is that why the markets are being manipulated right now to bring the cost of Bitcoin down and bring the cost of Bitcoin cash up. I think the market is being equalized, I think people are trying to equalize the market, I think the whales, the manipulators, the institutions are in here trying to manipulate it, to get people to adopt whatever one they want. I think there’s a lot more potential in Bitcoin cash because, if in the case that Bitcoin cash, for whatever reason, gains more mass widespread adoption, you’re going to see the price jump from a thousand very, very significantly, and quickly up thousands of dollars higher. And what that’s going to do, it’s going to make you a lot of money. You’re going to also see Bitcoin core drop even further, I don’t know if this is going to happen, Bitcoin core could go up, but in the long run, I’m a technologist, I’m a guy who knows technology who studied technology, who’s been around technology, mainly marketing technology but I understand technology nonetheless, not a coder and but I just see that Bitcoin core is not useful, it’s not functional, there are not as much utilities. You can call it digital gold all of you want, as a storage of value, which is fine use Bitcoin as a storage of value, but be careful because it may lose 20% in a day, so to me that’s not a good storage of value mechanism Lightning, again not a very good solution if it’s centralized, I do not like that and I am starting to stack more my eggs in the Bitcoin cash basket rather than the Bitcoin basket because the potential is higher. I’m not an ideologue, I’m not one to be like a loyalist to Bitcoin core forever and beyond, no matter what happens, even if it goes to zero! That’s utter nonsense and I don’t want to participate in it at all.

17:41 Your Thoughts And Comments

I’d love to know your thoughts on this. I’d love to know if you guys agree or disagree with me. I’d love to know if you’re holding Bitcoin or if you’re holding Bitcoin cash because I want to know, I want to know what’s the real Bitcoin! I don’t really know, I don’t really care so much as long as it makes some money, but I can really, really see the technological advantages of Bitcoin cash over Bitcoin core in my everyday life. When I use it, I can just see it, I can feel it, I can smell it, I can just see the snowball is gaining snow, the snowball is getting bigger and bigger and bigger and bigger and bigger as Bitcoin cash gets more and more adopted and it’s going to come down to, really, the miners, the transaction fees and the number of businesses that are able to use it and therefore adopt it, that’s what it’s going to come down to. If more people adopt Bitcoin cash because it does more, it has more utility. it will win out. Lighting Networks is going to throw a wrench into that, don’t know how it’s going to play out but would love your thoughts.

I’m Dan again from crypto Camacho, and please tear this apart and let me know why I’m wrong. Thanks guys, have a good one.

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This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.