Bitcoin is about to get a whole lot bigger

By Renegadeinvestor.co.uk

aliens-segregated-witness-master

(Alien Concept:  Segregated Witness explained in 15 seconds)

Without a doubt, one of Bitcoins biggest criticisms over the last 2 years which has brought into question its potential longevity and negatively impacted Bitcoin price & sentiment, has been the question surrounding the Bitcoin networks ability to scale.

With a current soft limit of 7 transactions per second. Due to the amazing success of Bitcoin and the high level of demand on the network since its inception; all too often Blocks containing all transactions that occur over a 10 minute period on the network have become full; leading to transaction delays & increased transaction fee’s as users try to ensure quick transactions.

Bitcoin sceptics quickly jumped on these issues as reasons why Bitcoin could not reach mainstream adoption, as network capacity would not be able to scale to support a larger user base  without serious implications for the cost and speed of transactions.

However as we enter Q4 2016 ,  new technology & software patches ( ‘Lightning Network‘ and ‘Segregated Witness’ ) look to be on the verge of addressing these long standing issues and at the same time, potentially increasing the attractiveness of Bitcoin as a long term investment opportunity.

Segregated Witness : 

Segregated Witness will essentially almost double the amount of transactions that can occur on the Bitcoin network every 10 minutes, without causing congestion and thus higher fee’s and according to Bitcoin Core project, we are now into the final countdown before it goes live.


Lightning Network:

Lightning Network technology  centres around building an additional transactional layer onto the Bitcoin network to allow for a huge increase in the amount of transactions that can occur off the space limited main Bitcoin Blockchain. Theoretically, this will allow the Bitcoin network to facilitate over 100,000 transactions per second, as well as allowing for instant transactions.

To put this into perspective the Visa network currently handles around 2000 TPS and has a maximum capacity of 56,000 TPS.

Perfect for microtransactions, lightning network technology could help ensure that Bitcoin facilitates its original stated function of a peer to peer electronic cash system, as well as what I currently see as its primary function right now; a counterparty and inflation hedge asset similar to precious metals.

Adding to speculation that a viable lightning Network implementation may become reality in the near future, is a recent announcement from  BitFury group, that specialise in developing Blockchain technology, including ‘Flare’ there test system for the Lightning network concept.

After a recent successful test of there ‘Flare’ system, Valery Vavilov, CEO of The Bitfury Group stated:

“This success exemplifies why The Bitfury Group is committed to research and to supporting the implementation of Lightning Network. Our dedicated engineers as well as our fellow Blockchain companies are committed to the success of Lightning,” said Valery Vavilov, CEO of The Bitfury Group. “This test of Flare, with small modifications made by the ACINQ team, shows that our solution is not only theoretically feasible, but successful. We are now one step closer to bringing the Lighting Network into reality and solving the scalability issue of the Bitcoin Blockchain.”

As more and more companies inch closer to successful lightning network implementations, alongside  Segregated Witness. We may soon have Bitcoin network scaling options that finally answer long standing doubts, that Bitcoin can scale sufficiently to make it a viable global platform.

In doing so, it may very well be one of the catalysts for new all time highs in the Bitcoin price in the near future.

 

Possible Deutsche Bank Bail-in could be catalyst for all time high Bitcoin prices

China facing full-blown banking crisis, world’s top financial watchdog warns

By Ambrose Evans Pritchard Via telegraph.co.uk 

  • “Outstanding loans have reached $28 trillion, as much as the commercial banking systems of the US and Japan combined. The scale is enough to threaten a worldwide shock if China ever loses control. Corporate debt alone has reached 171pc of GDP, and it is this that is keeping global regulators awake at night”

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Read more here..

 

Wells Fargo: Who says Crime doesn’t pay

By Mark St Cyr @  https://markstcyr.com

  • “Unless you’re one of the few people still watching CNN™,  you may have missed what can only be one of the most scandalous in-house criminal activities to be uncovered at a bank. And not just any bank. It happened at none other than Wells Fargo™”
  • “Not only did you not show a minuscule of righteous indignation – you seemed to bend-over-backwards as to defend the payment of (wait for it…) $125,000,000.00 as a parting gift to Carrie Tolstedt, who has been reported to have been the executive in charge of the unit where all this fraud took place. You know, the division where “sandbagging” customers continued long enough to have created its own internal moniker. Absolutely disgusting and shameful. Period”

Read more here..

Must Read: Forget Blockchain without Bitcoin Hype – Its Game Over for the statists

By @beautyon via medium.com

gameover

  • “What the Statists do not like about Bitcoin not being under central control, is that its success is a strong, undeniable signal that control by democratic government is not needed for essential societal functions like money, and that there are better ways to organize every aspect of society that do not require government. The idea that money will no longer be the special preserve of the State and its corrupt central banks is deeply disturbing to these men”
  • “The Blockchain was specifically designed to allow Bitcoin and its properties to exist. By definition, that is the correct use case for that software; to create a decentralized, peer to peer digital money substitute without the Double Spending Problem. If you have another novel use case and you re-purpose the software used to create the Blockchain, that is good; but if you do not have a novel use case, you do not need to use the Blockchain”

Read more here..

Why the First Bitcoin ETF Could Double the Price

Via 

  • “Most of the Bitcoin community has assumed the approval of the first Bitcoin ETF will be a positive for the price of Bitcoin. That’s because it will add to the legitimacy of the digital currency in addition to providing a new avenue for people to invest in Bitcoin.”
  • “Once the Winklevoss Bitcoin Trust launches, it will need to purchase Bitcoin to back the shares it has sold to investors. This fresh inflow of capital will kick the price of Bitcoin higher”

Read more here..

Wells Fargo Fires 5,300 For Engaging In Massive Fraud, Creating Over 2 Million Fake Accounts

Via zerohedge.com

  • “On Thursday, Wells Fargo was fined $185 million, for engaging in pervasive fraud over the years which included opening credit cards secretly without a customer’s consent, creating fake email accounts to sign up customers for online banking services, and forcing customers to accumulate late fees on accounts they never even knew they had. Regulators said such illegal sales practices had been going on since at least 2011″
  • “In all, Wells opened 1.5 million bank accounts and “applied” for 565,000 credit cards that were not authorized by their customers

Read more here..

(Must Read) “Blockchain Technology” – I Don’t Think it Means What You Think it Means

Via  eese @ 99bitcoins.com

[Editors note: Also see my video ‘9 reasons why Bitcoin will outcompete Private blockchains‘ as to why Private Blockchains controlled by banking and governmental bodies, will ultimately go against freedom, property rights, free market capitalism and all the other amazing things Bitcoin can facilitate.

  • “Having stripped from Bitcoin the capability to be run by anyone and controlled by no one, blockchains have absolutely no potential to be transformative in any meaningful sense. This explains their popularity with those in power, but it does not explain what they are, how they function, and why you would use one”
  • “Blockchain is the result of observing a technologically incredibly successful system (Bitcoin has had a 99.99% uptime, no sustained network forks, and no loss of funds due to bugs in the protocol) and trying to replicate this success at the surface while reversing the fundamental functions at its core”

Read more here.. 

 

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