Vitalik Buterin: Bitcoin is P2P cash, not digital gold

Ethereum co-founder Vitalik Buterin argued with a Bitcoin developer on Twitter yesterday, when he said that BTC was originally designed as P2P cash, not digital gold.

Blockflow developer Zack Voell, who stated that Bitcoin is always digital gold, Buterin points out the story has changed since 2011:

I joined Bitcoin in 2011 and then I remembered a clear vibe that Bitcoin was P2P cash and the second new to gold.

Buterin argued that Bitcoin was originally intended to be a peer-to-peer cryptocurrency supported by the very title of Bitcoin whitepaper, published in 2008 by Satoshi Nakamoto.

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

Why the debate about digital gold is important

Conflicts between the two views arise when one considers the difference between P2P cash and digital gold.

Gold, while scarce, is valuable and difficult to use as a daily trading currency. It can be carried or divided easily and practically is not available for microfinance payments, unless managed and supervised by a network of classified offices and offices. row) giant concentration. In such a scenario, the high transaction fees that arise are a matter of course.

On the other hand, P2P cash is exactly like that: A currency that can be traded between two people without intermediaries.

In fact, these philosophical differences are expressed in the form of a debate about Bitcoin block size. Bitcoin developers' refusal to increase block size to scale up on the chain led to high transaction fees and made it possible for a sizable community to create a new chain such as Bitcoin Cash (BCH).

Bitcoin transaction fee

Today, Bitcoin fees are currently among the highest in the cryptocurrency world. On March 1, the average transaction fee is $ 0.40. By March 20, it had risen to $ 1.76, according to data from Bitinfocharts.

Over the past 24 hours, the average BTC transaction fee was 617% to 645,900% higher than other major cryptocurrencies (ETH and XRP, respectively).

Source: Bitinfocharts

However, Bitcoin advocates who are digital gold accept high fees and consider it a manifestation of the high security of the network, derived from the hash function that dominates Bitcoin. The high fees are acceptable to users who treat it as digital gold, as they often trade in larger quantities.

Similarly, Vitallik accepts the reality of the high fees of BTC and suggests that now that the use case of digital gold has been established, people should only use another cryptocurrency for use cases. other:

It is a controversial axis made without the consent of many participants. It is certainly logical to be upset about that, although true, now that the axis has happened, and if you don't like it, you should only use one of the other blockchains whose community represents different values.

More than 11 years after mining the original Bitcoin block, the original design of Satoshi Nakamoto has been reinterpreted and built by many individuals, businessmen and pioneers (in their opinion).

The beauty of blockchain is that the philosophical differences that can actually be solved in the form of hard forks. Bitcoin Core developers' insistence on keeping block size low and maintaining digital gold narration, perhaps inspired the hard forks and launched more altcoins than any other phenomenon. in the cryptocurrency.

Hòa Thân

According to Cointelegraph

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