Bitcoin Cash: A Centralized Currency Weakly Disguised

Bitcoin Cash: A Centralized Currency Weakly Disguised

For a cleaner presentation, visit Squawker: Become the Counterculture

An engineered civil war over the future of Bitcoin has been brewing for the past few years.

The so-called core-developers of the currency want to move data off the main blockchain network into smaller bitcoin blocks, they say to protect it against hacks.

The miners of course want to increase the size of blocks to make the network faster and more scalable ... and so they can continue to mine.

Primavera De Filippi, a Hacker and Blockchain researcher at Harvard, together with Benjamin Loveluck, Associate professor at Télécom ParisTech and research associate at CERSA, argue in a new paper that bitcoin has evolved into a highly centralized network under the technocratic governance of a small number of individuals.

Exactly how the central banking system is today.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

• Henry Ford

Bitcoin functions exactly like a Ponzi scheme, which is what the Federal Reserve is today. The Fed takes our money and gives us nothing of value in return, rather instead charging us an interest rate.

We pay them for printed paper.

As debt continues to grow, print more money. As the value of Bitcoin expands, mine more Bitcoins.

On July 22, Bitcoin Improvement Proposal (BIP) 91 was implemented; a protocol that prevents a hard fork from occurring by providing a 'supposed' compromise between what miners and developers want ... except that if no agreement can be made by Aug. 1, Bitcoin cash will fork from Bitcoin, which completely supports miners over developers.

Surprisingly enough, more than 80 percent of bitcoin miners expressed support for BIP91, passing the threshold required for implementation.

It’s a new software that has all the history of the old platform but bitcoin cash blocks will be eight megabytes.

Same thing, but with more data storage capacity so the amount of Bitcoins mined can continue to grow ... exactly what the miners want.

August 1 rolls around, no agreement has been reached, therefore Bitcoin Cash is created.

Miners (bankers) win.

Supporters of the newly formed Bitcoin Cash (BCC) believe the currency will “breath new life into” the nearly ten-year-old bitcoin by addressing some of the issues that have underpinned the bitcoin (BTC) as of late, such as slow transaction speeds.

Luis Cuende, co-founder of Aragon thinks it “will positively impact Bitcoin.”

He explained, however, that Bitcoin Cash may be short-lived. “Probably a fatal bug will crash the whole network (it already happened with Bitcoin Unlimited, Cash’s predecessor) or people will just lose interest in a currency engineered to look decentralized while being totally centralized,” he said in a statement.

The same concern has led major exchanges like Coinbase and BitMEX to hold off on support for Bitcoin Cash. “When we look back 30 days from now, this is essentially going to be a non-event,” said Coinsource CEO Sheffield Clark. “We have absolutely no plans to integrate Bitcoin Cash at our machines at this time.”

AQR Capital Management former managing director Aaron Brown told MIT Tech Review: “People do not use them because they have faith in their long-term survival, but because they can facilitate transactions today.”

Sounds like he is defending a ponzi scheme.

Arthur Hayes, CEO of BitMex, a bitcoin derivative exchange, told Business Insider “There are people with billions of dollars of skin in the game and they will ultimately go with the superior bitcoin network and the market will follow."

What is your take? Think Bitcoin is the future of currency? Or perhaps Ethereum will rise from the ashes of the incoming dollar fallout as the victor.

Get the latest Bitcoin price here.

Get the latest Bitcoin Cash price here.