Topic: Economically, Segwit and LN are similar to changing the 21M coin supply (Read 401 times)
March 20, 2016, 03:47:12 AM
I don't see how is that video has anything to do with segwit. Segwit is 10x more complex than that video, and it has changed incentive mechanism to benefit transactions with many outputs (centralized pools/web wallets etc...), and LN is another thing pushing for mass adoption of those centralized services since it does not benefit average users doing casual spending, but greatly benefit repeated transactions between institutions
March 19, 2016, 07:35:37 PM
learn, you fool : https://www.youtube.com/watch?v=A_8-UveUNg8
... "a discount" in a computer network.
... "a discount" in a computer network.
March 19, 2016, 07:28:05 PM
The purpose of Segwit's 1/4 discount for witness data is mainly for online wallet companies: They have many small outputs from customers, and when those outputs need to be swept together, they must pay fee for all those signatures. Give a 1/4 discount will make Segwit more attractive for online wallet providers like BTCC, save them a couple of hundred dollars daily, and no doubt so many wallet companies are supporting segwit
However, driving users to centralized offline service providers means that majority of users will face a risk like MTGOX, where centralized service providers work like a bank. Those service providers are already running on a fractioanl reserve basis, they take customer deposit and invest them into mining infrastructure. So if there is a hard fork and people withdraw coins to be spent on another chain, they will go bankrupt, that's also the reason BTCC strongly against a hard fork
But we all know that fractional reserve banking is against the very principle of bitcoin: Being your own bank. The purpose of being your own bank is just to prevent fractional reserve banking from creating more and more money flow into the economy, thus bring inflation
And now Segwit and LN especially encourage this kind of practice, so they are indirectly increase the money supply of bitcoin monetary system. No one can increase the base money supply of 21 million bitcoins, but by doing fractional reserve banking, they use the money multiplier to effectively create many times more money flow than 21 million bitcoins, thus dramatically increase the inflation
However, driving users to centralized offline service providers means that majority of users will face a risk like MTGOX, where centralized service providers work like a bank. Those service providers are already running on a fractioanl reserve basis, they take customer deposit and invest them into mining infrastructure. So if there is a hard fork and people withdraw coins to be spent on another chain, they will go bankrupt, that's also the reason BTCC strongly against a hard fork
But we all know that fractional reserve banking is against the very principle of bitcoin: Being your own bank. The purpose of being your own bank is just to prevent fractional reserve banking from creating more and more money flow into the economy, thus bring inflation
And now Segwit and LN especially encourage this kind of practice, so they are indirectly increase the money supply of bitcoin monetary system. No one can increase the base money supply of 21 million bitcoins, but by doing fractional reserve banking, they use the money multiplier to effectively create many times more money flow than 21 million bitcoins, thus dramatically increase the inflation
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