Vitalik Buterin: Bitcoin is not always "digital gold".

Did Vitalik Buterin

Vitalik Buterin - the co-founder of Ethereum, took part in a quarrel on Twitter with a Bitcoin developer yesterday, when he suggested that BTC was originally designed to be P2P cash, rather than " digital gold ”.

In response to a Blockstream employee named Zack Voell - who claimed that Bitcoin was always digital gold, Buterin shown that this story has changed since 2011:

"I joined Bitcoin in 2011 and back then I clearly remembered the vibe that Bitcoin was the first P2P cash and the second was gold."

Source: Twitter: Vitalik Buterin, Zack Voell
Source: Twitter: Vitalik Buterin, Zack Voell

Buterin's view that Bitcoin was initially shaped as a peer-to-peer cryptocurrency was backed by the very title of the Bitcoin whitepaper - published by Satoshi Nakamoto in 2008.

Indeed, the first line in the Bitcoin whitepaper reads: "A completely peer-to-peer version of the cryptocurrency will allow payments to be sent directly from one side to another without going through a financial institution. ”

Why is the debate about digital gold important?

The conflict between the two sides arose when people considered the difference between P2P cash and digital gold.

Although gold is scarce and valuable, it is difficult to use as a daily trading currency. Gold cannot be easily carried or dispensed, and is practically useless for macro payments, unless it is managed and monitored by a network of sorting offices and offices. (bank) huge concentration. In such a scenario, the high transaction costs that arise are a matter of course.

On the other hand, P2P cash is exactly the same: a currency can be traded between two people without an intermediary.

In fact, these philosophical differences are expressed in the form of a debate about Bitcoin's cubic consciousness. Bitcoin developers' refusal to increase block size to expand on-chain scale, reduce transaction fees, led a sizable community to create a new fork chain - Bitcoin Cash (BCH).

Bitcoin transaction fee

Today, Bitcoin fees are among the highest in the crypto space. On March 1, the average fee for a BTC transaction was $ 0.4. By March 20, it had risen to $ 1.76, according to data from Bitinfocharts.

Over the past 24 hours, the average BTC transaction fee has been 617% to 645,900% higher than for other major cryptocurrencies, such as ETH and XRP.

Source: Bitinfocharts
Source: Bitinfocharts

However, supporters of Bitcoin's digital gold story accept this high fee and see it as a sign of high security of the network - which comes from dominating the hashrate of Bitcoin. High fees are more acceptable for "digital gold" users, as they often trade in large quantities.

Moreover, Buterin still accepts the fact that the high fees of BTC, and it is suggested that now that the use case as digital gold has been established, people should simply use different cryptocurrencies for different cases:

“It was a controversial axis that was done without the consent of many participants. It is certainly plausible to be dissatisfied with that, even though right now, the spindle has happened and if you don't like it, you should just use one of the other blockchains - dynamically displaying prices. different values. "

More than 11 years after Bitcoin's genesis block was mined, Satoshi Nakamoto's original blueprint has been reinterpreted, and built by many individuals, businessmen and pioneers.

The beauty of blockchain is the philosophical difference that can be resolved in practice, through hard forks. The fact that Bitcoin Core developers are determined to keep the block size low and maintain the digital gold story may have inspired more hard forks and more launches atlcoin.

Maybe you are interested:

  • Bitcoin price skyrocketed to $ 6,600, what will happen next?

  • Vitalik Buterin sees the future of decentralized privacy currency

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According to CoinTelegraph
Translated by ToiYeuBitcoin

The post Vitalik Buterin: Bitcoin is not always "digital gold" appeared first on I Love Bitcoin.

About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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