Fri Jan 15, 2016 4:28pm EST
Lead developer quits bitcoin saying it 'has failed'
Bitcoin slid by 10 percent on Friday after one of its lead developers, Mike Hearn, said in a blogpost that he was ending his involvement with the cryptocurrency and selling all of his remaining holdings because it had "failed".
...Each block currently has a capacity of one megabyte, which Hearn says is "an entirely artificial capacity cap", and allows a maximum of just three payments to be processed per second.
In August, Hearn and Andresen released a rival version of the current software, called Bitcoin XT, which would increase the block size to 8 megabytes, allowing up to 24 transactions to be processed every second. While that is still a fraction of the 20,000 or so that Visa can process, it would increase every year, so that bitcoin could continue to grow.
But the new software has not been adopted by the "mining" computers that secure the network, the majority of which are in China, according to Hearn.
Hearn says the bitcoin network is about to run out of capacity as the volume of transactions increases. And when that happens, the network will become unreliable, with payments unable to be processed and vulnerable to fraud.
"If an IT system runs out of capacity like that then all kinds of things go wrong – all hell breaks loose," he said in an interview with Reuters in late December.
Hearn reckons the bitcoin community has "failed" in its governance of the crytocurrency's code.
"What was meant to be a new, decentralised form of money that lacked 'systemically important institutions' and 'too big to fail' has become something even worse: a system completely controlled by just a handful of people," he wrote.
..."The current price of bitcoin is supported almost entirely by people speculating on its future, in the assumption that this could be the money of tomorrow," he said. "So if the network starts to collapse, then a lot of people are going to look at it and say: well maybe we've miscalculated (its) future value."
Hearn is now working for the R3CEV consortium of banks working on using the blockchain technology that underpins bitcoin in financial markets.
Stephan Tual, the former chief operating officer of blockchain firm Ethereum, who now works at blockchain-based app developer Slock.it, also reckons bitcoin's future looks shaky.
"Bitcoin is outdated technology - almost prehistoric by crypto standards," he said. "It's because of petty quarrels such as these that it hasn't been able to evolve in five years."
Others were more upbeat.
"I'm not ready to declare that Bitcoin has failed," wrote U.S. venture capitalist Fred Wilson.
"Sometimes it takes a crisis to get everyone in a room... So if we are going to have a crisis, let's get on with it. No better time than the present."
Somebody has been leaned on.
From BBC: Iran nuclear deal: International sanctions lifted 16 January 2016
International sanctions on Iran have been lifted after its compliance with obligations under its nuclear agreement with world powers was certified.
The EU foreign policy chief, Federica Mogherini, said the sanctions were lifted in accordance with the deal "as Iran has fulfilled its commitment".
The international nuclear watchdog, the IAEA, said its inspectors had verified that Iran had taken the required steps.
A deal between Iran and world powers was agreed last July.
Lifting the international sanctions on Iran will unfreeze billions of dollars of assets and allow Iranian oil to be sold internationally.
I don't twit, I don't tweet, but I do use twitter for data mining and often find very useful information. Take the following:
This is an interesting series of tweets explaining the effects of LOW OIL PRICES and the subsequent selling of dollar assets/stocks by Sovereign Wealth Funds of oil exporting countries as well as the reduction of cash reserves of those same countries. Added up, that's a lot of $dollar assets being sold and driving down prices of those assets/stocks, not to mention the loss of $dollar recycling because of the lower $dollar revenues of the oil exporting countries.
So what happens to the price of oil when IRAN starts selling their oil on the world markets? What currency(s) will they take for that oil?
The HY bonds have already been hit hard and it's only going to get worse. More US shale companies will go bankrupt. Banks are going to start going bankrupt, or potential bail-outs or bail-ins.
So is this how the almighty $US dollar loses it's world reserve status? Was this the plan all along by Saudi Arabia along with other "secret" partners?
Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears
If this week is a harbinger for the rest of 2016,
we are in for one helluva ride, and profitable the likes that will put recent years to shame.
Hey, what happened to the emoticons / smiley faces?
Or is this merely a/the tradeoff in order to get the UTube video links working properly?
GoldMoney® 2016 Outlook & Roundtable Discussion - James Turk, Alasdair Macleod, John Butler.
erewenguy wrote: Fri Jan 15, 2016 4:28pm EST Lead developer quits bitcoin saying it 'has failed' https://www.reuters.com/article/us-global-technology-bitcoin-idUSKCN0UT2II
The link to Hearn's original article concerning Bit (and where's the) coin is here:
What really stood out was:
"Why has Bitcoin failed?...
Think about it. If you had never heard about Bitcoin before, would you care about a payments network that:
I’m going to hazard a guess that the answer is no. ..."
Caveat Emptor indeed. ; )
cliff 567 wrote: Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears
This is a whole new gambit/tactic of the Banksters to save their a**, thus we are shocked!
SilverRunNW wrote: So what happens to the price of oil when IRAN starts selling their oil on the world markets? What currency(s) will they take for that oil? ... So is this how the almighty $US dollar loses it's world reserve status? Was this the plan all along by Saudi Arabia along with other "secret" partners?
The House of Saud isn't completely stupid, and has watched/ witnessed repeatedly how the Phed Bankster controlled U.S. Gov't has stabbed its M.E. Allies in the back.
Ron Paul recently addressed the issue:
Agreed, I'm sure they're fully aware of all the antics of the banksters. Events seem to be coming fast and furious and 2016 is shaping up to be a major game changing year. And for KSA, I wonder how long they'll be fighting in Yemen and if the country might destabilize with unhappy Saud family members and the power hungry Prince Mohammed bin Salman.
Wonder how this will effect the $US dollar value. So is this a way for China, as largest contributor to AIIB funds, to use their hoard of US treasuries to get the most value out of them, while reducing US Treasury/Fed Reserve ability to generate more debt to sustain $dollar debt ponzi?
AIIB to Issue Loans in US Dollars, Attract Capital in Other Currencies
"As a multilateral development institution and taking into account the existing international financial system, we use English as a working language and we use the US dollar as the currency of the institute," Jin said.
Deutsche Welle report:
The Asian Infrastructure Investment Bank, which officially opened on Saturday, is designed to revamp aging infrastructure in emerging Asian economies. The Chinese-led bank starts with 57 member states and a capital stock of $100 billion.
Watch video 01:54
Will gold get out of bed and jet jiggy with it
Hao Yu Kno, Fun He Ting?
Hard to know what's really true, but keeping up with geopolitical opinions from varies researchers/writers helps to understand our world.
(Part 1) The Geopolitics Behind the War in Yemen: The Start of a New Front against Iran
(Part 2) The Geopolitics Behind the War in Yemen: Do the US and Saudi Arabia Want to Divide Yemen?
"The United States and the Kingdom of Saudi Arabia became very uneasy when the Yemenese or Yemenite movement of the Houthi or Ansarallah (meaning the supporters of God in Arabic) gained control of Yemen’s capital, Sanaa/Sana, in September 2014. The US-supported Yemenite President Abd-Rabbuh Manṣour Al-Hadi was humiliatingly forced to share power with the Houthis and the coalition of northern Yemenese tribes that had helped them enter Sana. Al-Hadi declared that negotiations for a Yemeni national unity government would take place and his allies the US and Saudi Arabia tried to use a new national dialogue and mediated talks to co-opt and pacify the Houthis."
"The instability in Yemen is being caused not by Iran or the Houthis, but by US and Saudi interference in Yemen — from Saudi Arabia’s 2009 invasion to US drone attacks — and the decades of support that Saudi Arabia has provided for authoritarian and unpopular rule in Yemen."
China-led Asian Infrastructure Investment Bank Opens Without the US
Asia Mkts smashed.
Euro Mkts getting trashed.
Au & Ag gaining.