Sunday, March 19, 2017

Multi currency is hear to stay

Vinny Lingham warns about bitcoin hard fork.
In the event that 35–50% of miners broke away and created an altcoin, in this case — Bitcoin Unlimited, we would essentially then have 2 coins. Bitcoin (BTC) & Bitcoin Unlimited (BTU). One could argue that BTU is not Bitcoin, but it may still be called Bitcoin by the man on the street. For instance, if he buys what he thinks is Bitcoin, to buy some gift cards at Gyft, only to discover that he bought the wrong Bitcoin — can you imagine the issues that merchants are going to have now in dealing with the customer support fallout. In all or many cases, they may even remove Bitcoin as a payment method, unless the business is Bitcoin only, in order to avoid customer confusion or the risk of the individual coins fluctuating in price between purchase and usage.
There is disagreement about the ledger service, about making the block chain more flexible. So one group might take and split off, and I think, heir section of the blockchain gets segmented off, forever. The block chain is where ownership of bit coin is observable and respected.

However, Vinny need not  resort to the multi currency problem, because e re going to have it anyway, multiple currency support is a necessity, with or without a hard fork of bitcoin.

Bitcoin suffers a more severe constraint, we need a central bank hedge. One way or the other, the bitcoin industry is providing it.

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