Topic: Bitcoin: Should you stay or should you go? - page 22. (Read 34212 times)

Why would a internal blockchain be any different from bitcoins blockchain?

If a bank will use blockchain it would set up miners that compete with each other and validate the work of the others. Since they had complete controll they could keep the hash power under controll. The system would stable as they did not have to worry about mining pools taking shortcuts.

Good point about an internal blockchain being any better than a [hackable] database! Unless it was open source code, an internal [proprietary] database wouldn't be any better. But of course, if the code were open source, then bitcoin coders could incorporate any improvements (if any) into the bitcoin blockchain. If the proprietary blockchain were closed source, it would have no credibility at all. My point is that internal, proprietary blockchains might just be baby-steps towards full adaption of the bitcoin blockchain, recapitulating the world's adaption of the Web circa 1994. Remember that it took some time -- although not too long -- for Visa and Mastercard logos to start showing up on websites selling porn. Now that's adaptation.

As for regulators and their mission, as one who lived through the early days of the Web, I remember being struck by how fast and how well governments adapted to the Web and began implementing their services with it. It was really quite remarkable. The states and the feds got on board with unexpected facility. I personally think that will happen again with the blockchain -- or at least I for one won't be surprised if it does. Remember that cost will be the driver -- money saved is money that can be spent somewhere else.

As for guaranteeing transaction times, it is important not to put the cart before the horse. Bitcoin technology right now is what it is. No one is talking about a deadline for transitioning bank and governmental services to the bitcoin blockchain. And even if the confirmation time should get much longer than it is now, that would not necessarily invalidate its usefulness. Consider the blockchain's use as nothing more than a backup encrypted database. Well, so what if it takes an hour for a transaction to be confirmed? Before blockchains came along, internal databases were hackable -- alterable -- as long as they existed.

I think you are both right. May be you can enlighten me. Would an internal blockchain be much different from a database? I see security as the biggest concern can you as easily compromise database as an internal blockchain? Migrating into existing one would solve this issue.

Regulators are peculiar beasts their objective are protecting consumers, ensuring market integrity, and promoting effective competition. While technology is little understood especially if you look beyond common cases of using blockchain for moving value around and consider smart contracts, coloured coins and digitised securities neither tech nor regulators are there yet. Hopefully they will get there soon rather than later.

SLA is how quickly can you process a transaction, can blockchain guarantee transaction time? I do not see how. If you as a business for example exchange have to push transaction and guarantee it's time how can you do it? Can you mine your own?

Help me out here.

If by "SLA" you mean Service Level Agreement, I think they could be incorporated into a bitcoin smart-contract, but there would be nothing to stop blockchain transactions between known, mutually agreeing parties from being governed by traditional contracts and agreements. Expediency and cost will determine which.

As for government regulators, I think they will be convinced by the blockchain technology and its performance just as banks are quickly being convinced, and for the same reasons. In a way, the regulators are already convinced, since state legislators (as in California and New York) are passing laws recognizing the basic legality of cryptocurrency transactions.

I think that firms or government departments will (at least at first) try to use their own internal blockchains. But I also think that they will eventually realize that the bitcoin blockchain will be far more stable than anything a centralized entity can create. But even internal, proprietary blockchains would boost the bitcoin blockchain because it would likely be used as backup. So it's reasonable to suppose that at first institutions will not trust the bitcoin blockchain at all; then trust it for use as backup; and then use it as a primary tool to ensure their encrypted records have not been tampered with. Budgetary considerations would also support a pro-bitcoin consensus: why reinvent the wheel?

Stay at least until next halvin next year.
Then you will see if hold or sell.

You couldn't agree more, but...

You seem to say that firms will establish their own blockchains, and use them internally...

How does using an internal blockchain lead to: "All of which means that institutional use of the blockchain for tamper-proof data storage may well be the upward driver of the price of bitcoins for the next several years."

I could not agree with you more.

Before this happens people like you and me who are diehard converted would have to solve a couple problems to get institutions going.

1. SLAs - Blockchain has non. No serious business would adopt the tech without SLAs.
2. Regulators - that have to be convinced that blockchain is as good if not better in settlement compare to the existing highly regulated Central Counterparties.

To you point regarding side chains or managed coins, I'm not convinced. They will play with that but any form of managed blockchain takes away the censorship resilience that bitcoin naturally have. The tech needs to evolve.

That's right. But I think that it will be the blockchain that is massively adopted first, by massive institutions. Even banks that first try their own proprietary blockchains will discover that they might just as well use the bitcoin blockchain too, if only for backup data-archiving purposes. In other words, institutions will drive adaptation for their own internal purposes, and only then begin offering bank accounts and debit- and credit-cards that use bitcoins in a way perfectly transparent to the their customers, who, as you say, will not care about the mechanics. They just want to slide their cards or wave their phones. And that preference will be served. I think this will happen even before online gambling moves decisively to the dark web. So legal-market adaptation would drive illegal-market adaptation. (After which online bitcoin gambling will be legalized.)

All of which means that institutional use of the blockchain for tamper-proof data storage may well be the upward driver of the price of bitcoins for the next several years.

Except for bad economic news of course. The Euro may be bitcoin's second killer app after the blockchain itself.

Bitcoin of some sort is here to stay but in my opinion it will only get to the masses when masses will stop thinking about it. How much do you think about how a card works when you make a payment? You just accept it that it works that's it. So that what I believe we have in store to bitcoin. People are not interested call bitcoin or token or apple pay. They care if it solves a problem or makes their live easier or cheaper. In current form bitcoin does not do these these things to it's best. But I'm a big believer. It will change the way people do business but when they will stop noticing it.

i think bitcoin is the future ...cash money will disapere because that is how this word goes ...we must cange this curenci we are in digital world now

Correct. I think this is the best time to buy bitcoins in bulk and hold it for the future. As the prices are relatively low so it would be great for new entrants who wants to invest in bitcoins. Save money from salary and buy bitcoins and keep it safe for the future. It would be surely a profitable investment.

Yeah. This is the best time to buy bitcoins and get into it on the full fledged. And what I have noticed in past few weeks is that the prices are going higher and there is fluctuations too. Prices were lower when I started in Bitcoins but now I am already in profit and I believe that prices will go much higher in coming weeks.

I think or at least hope many laggards will come to regret not getting involved with bitcoin in the future, but I think it's going to take many years to break into the mainstream. I think bitcoin is comparable to the early days of the internet also, but I don't think it's going to revolutionize the world like it did unfortunately. It will likely have its place in the remittance market and grow in use with online payments but I can't see full world domination sadly as most people just don't seem to care or will have that much of a use for it. Hope I'm wrong though.

i think the better approach is to invest in bitcoin for long term and so as a result this level of price would be very good to buy bitcoin at.

because bitcoin price is going up in the near future and these little bumps will be unnoticeable in the long run.

I'm fine with most people not getting it yet. It really is what current speculative profits are based on. Just as with the constant stream of criticisms of the early internet, by those who could not see that the internet would eventually dominate their lives, those who see bitcoin's potential stand to gain the most. 
One can invent all sorts of reasons why bitcoin might not do this or that, but as long as it is the fastest, safest, and cheapest way to move money it is worth trillions. That kind of money is never left on the table. 

Only so many people in the world are going to be able to say they own 1 btc in the future and I will be one of them, if you really believe in bitcoin you should stay here

For me the best time to buy bitcoins now is .... buy now today! Bitcoin price won't go down much like most of people wants to buy massive bitcoins. Percentage of growing up this past days is higher than going down.

There is no need to predict short term price. The price will go up long term.

The best time when you must bought bitcoin is when its price is so low and then you sell it again when its price goes up and now you earn profit from doing that.

I believe it would be best to wait a little more before going into huge buying sprees, the rest of the US will be waking up in a few more hours and there might be some more selling off that could bring the price ever lower. A lot of people do not yet know that Greece is being given another chance.