Another week, another saga in the bitcoin world, or two, or three, or more than I can mention. Let’s start off with Mr. Craig S Wright, a man who claims to be the creator of Bitcoin. Last week at the future of Bitcoin conference in the Netherlands, Jon Matoni, president of nChain announced he was handing over his time to speak to Wright at the last minute. After taking the stage Wright seemed very upset and proceeded to talk about why SegWit and Lightning network are complete crap and should be thrown out or abandoned. He also had choice words for some Bitcoin Core developers and made a case for why we need to scale now. Mr. Wright’s segment of this speech can be found here.
I must say for the last couple of years I thought Mr. Craig Wright was a scammer or just some crazy fame seeker. His recent speech changed my view. I urge you to put aside whatever you feel about this person and watch his speech. Wright makes a compelling case of why we need to scale radically now and how it could be the end game for government competition in the currency end game. He offers solution to transaction malleability by changing the way ECSDA is calculated by reversing the math instead of implementing things like Segwit. He also gives a good argument of why node count does not matter, but rather surface area of nodes is what matters. I will look for the other side (Core devs) to refute his arguments going forward. I find many of his ideas and ideals interesting and worth consideration. Please keep an open mind and check out his speech.
Japan seems to be going all in when it comes to cryptocurrencies. This week a bill went into effect that officially ends taxation on bitcoin in Japan. As someone who has been a big fan of Kyle Bass’s predictions over the years, I must say this one is quite baffling to me. I have been watching Japan for some time as I see them as a canary in the coal mine when it comes to things like hyper inflationary collapses of world superpowers. Japan has been on a QE path to oblivion for quite some time. This coupled with the fact that it’s an island with few natural energy resources as well as an aging demographic time bomb make it prime for a financial s%$tstorm. It would seem natural for Japan to try to tax bitcoin and other cryptocurrencies in an effort to get something going to reverse all of these trends. Don’t get me wrong, I think taxation is theft, but if I was the Japanese PM, I would think taxation would be on the table. It could also be a last ditch effort, desperate attempt to open the floodgates of a new wave of business to come to Japan.
Lastly, the long awaited Tezos ICO is here. Tezos is aiming to be a competitor to Ethereum offering a smart contract platform with POS or a proof of stake system . One of the big differences with Tezos is that they have claimed to solve the formal verification issue that some consider to be the biggest reason that the DAO exploit happened with Ethereum. You can download and read the Tezos whitepaper here. I tried to participate in this crowd fund myself. I was unsuccessful though because I found out the hard way there was a .1BTC limit on contributions. After contacting support, I was made aware that this information was listed on a separate website than the crown funding page so it was easy to miss. Furthermore, the BTC I attempted to use to buy Tezos will be returned to me a some later date, yet to be determined after the crowd sale has ended. This ineffective marketing, allowance of insufficient contributions and refusal of prompt repayment alarmed me about a project I was previously rather excited about.
Another concern I have about this crowdfund is the fact that has an open cap that lasts for days. There is no telling how much money they could receive in that time period. Other recent ICO’s have raised upwards of 150-200 million dollars. Maybe they will get enough to buy a small country, who knows. I put out a video about the issues with these large crowdfunds here. This might be a good one to wait until it hits the exchanges and then buy after the whales or large investors dump their tokens. If you would like to participate in this crowd sale it will be live for another 5 days. Do so at your own risk and good luck to us!