Recently, at the Blockchaintalks special addition in Amsterdam, Tone Vays, a well-known Bitcoin influencer spoke about Bitcoin [BTC]’s fundamental properties and the scalability of the cryptocurrency.
The Bitcoin influence spoke about the creator of Bitcoin, Satoshi Nakamoto. The creator published the whitepaper of the coin, which is now the ruler of the cryptoverse, in 2008, after which it embarked its journey in 2009. Here, Vays opines that Bitcoin did not have value during its initial year whereas now, the coin “has a lot of value”.
He further covered the three fundamental properties which contribute to its value. He said:
“It is unconfiscatable, you properly protect your private keys, it is censorship resistant value transfer, there is no middleman as you are transferring this Bitcoin from one person to another and it has an unchangeable monetory policy.”
Vays continued to say that Satoshi Nakamoto’s third fundamental property was to ensure that changes cannot be made to the monetary policy. Here, he stated that Satoshi put in the third fundamental in order to keep the first two principles intact.
The Bitcoin enthusiast went on to say that the monetary policy which was chosen was similar to that of gold, a finite supply of Bitcoin. However, the policies do not “imply” that Bitcoin is free, instant, and “necessarily has to be private”, he stated. Vays further added that “we are stuck with these fundamental features.”
This was followed by him stating that in the current scenario the focus should be on scaling Bitcoin and making the transactions cheap, fast, and private without imperiling the fundamental features set by Nakamoto. Vays stated that if the fundaments were endangered, then the “entire concept value in a blockchain will probably get lost”.
“Bitcoin may not be the fastest, may not be the cheapest, may not be the private right now but it is the one that people trust right now and people have the most confidence in because if people migrate to another blockchain, what is to say? That they’re not gonna migrate to another blockchain after that and another blockchain after that. Why would you want to save any value in your blockchain if they’re so fungible.”
Vays went on to say that if this were to happen then it would almost be like the Venezuelan currency, Bolivar. People would end up spending the currency soon after they received it as holding it for more than a day could get them trouble.
Furthermore, he stated that scaling needs to on the second layer as scaling the first layer would imperil the “most critical properties” of Bitcoin’s blockchain. He continued to say:
“Satoshi put into one-megabyte block limit, at that time he didn’t realize that it is impossible to raise it because it would cause a split and now we are going to do everything right.”
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