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Why the practical applications of Bitcoin will be limited

sidazhang.com

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Re: Why the practical applications of Bitcoin will be limited

#41

Post by StavrosK »

DennisP wrote: post #37
StavrosK wrote: post #31

Earlier quoted context omitted.

Huh, interesting. I'm not familiar with the problem with large blocks, so I don't know why this proposed solution is good, but I'm glad it exists. If anyone wants to explain the problem, I would be indebted.

The time to propagate blocks is proportional to the block size, and if it takes too long compared to the block frequency, you end up with forks. That's the main reason we only have a block every 10 minutes, and limit to 7 tx/sec. But the transactions are sent separately, so the miners can make blocks out of them. There's no need to duplicate them all in the blocks themselves.

I see, thank you. Pretty clear.

Re: Why the practical applications of Bitcoin will be limited

#42

Post by stcredzero »

lsadam0 wrote: post #18
Mahn wrote: post #6

Despite the click-bait title, the article makes valid points which are very often overlooked or downright ignored by hardcore bitcoiners. As someone who's been watching bitcoin for the past few years, this is in my opinion the plain reality.

The problem with that article is not that it makes 0 valid points, it's that it makes some terrible correlations as an attempt to prove cryptos won't be huge. What does a scammer selling unlicensed shares in porn production have anything to do with the success or failure of cryptocurrency? Bitcoin was simply the method of payment, nothing more. That example is immediately followed with the eBay + TicketMaster example…

You know why I would prefer a decentralized trustful solution like OpenBazaar? Because eBay bends me over with fees. In fact, they double dip. And there's nothing I can do about it.

Isn't that why established players will mostly prefer not to use decentralized currency? Won't the network effect always relegate things like Bitcoin to the fringes?

Re: Why the practical applications of Bitcoin will be limited

#43

Post by etchalon »

lsadam0 wrote: post #21
etchalon wrote: post #9

Earlier quoted context omitted.

There is definitely a pervasive culture within cryptos of people either "getting it" or "not". It's a bit disturbing.

I believe both sides of the aisle hold some responsibility for this disconnect. Detractors of cryptocurrency often like to cite the shady world of BitCoin securities, just like this article does. However, that's not a valid criticism. BTC functioned only as the method of payment. You can't criticize the future utility of a technology based upon how someone has misused it. If that were the case, we should ban the Inte…

Generally though, the issue is mentioned in a broader context than just "someone did a bad thing with the internet", and more that the community behind Bitcoin, and the libertarian philosophies which guide it, give rise to the scams and dark market uses of the currency.

When evaluating and discussing any technology, you're absolutely right: it is unfair to criticize it based on a few bad examples.

However, it is fair to look at a technology and consider whether the "legal" outweigh the "illegal" ones, and if not, why.

The author makes this point succinctly.

Re: Why the practical applications of Bitcoin will be limited

#44

Post by ForHackernews »

lsadam0 wrote: post #18
Mahn wrote: post #6

Despite the click-bait title, the article makes valid points which are very often overlooked or downright ignored by hardcore bitcoiners. As someone who's been watching bitcoin for the past few years, this is in my opinion the plain reality.

The problem with that article is not that it makes 0 valid points, it's that it makes some terrible correlations as an attempt to prove cryptos won't be huge. What does a scammer selling unlicensed shares in porn production have anything to do with the success or failure of cryptocurrency? Bitcoin was simply the method of payment, nothing more. That example is immediately followed with the eBay + TicketMaster example…

> What does a scammer selling unlicensed shares in porn production have anything to do with the success or failure of cryptocurrency?

Because it demonstrates dramatically that one of the main purported advantages of bitcoin (its "trustless" nature) is comically false. As you say, bitcoin is just a payment method, and contrary to what its advocates claim, it does absolutely nothing to prevent shady scams or eliminate the need for good regulations and strong enforcement.

Re: Why the practical applications of Bitcoin will be limited

#45

Post by csentropy »

Bad arguments. 1. Reason one is wrong as both increase in transaction volume and BTC price are both not only possible but can actually be positive externalities that reinforce each other. The increase in transactions could lead to an increase in price as more people adopt BTC. This has already proven to be the case in the early history of BTC. 2. See above. Once adoption increases, the incentive to convert to Fiat decreases thus making this problem gradually irrelevant once the market tips (the big if). 3. The need for regulations: Obviously total garbage. No need to refute. 4. Decentralization is better than monopoly central control. Legislators and Regulators are the only true monopolies. Market actors are not, so market based intermediaries will still have reasons to exist. This is not a necessary condition for widespread BTC adoption. 5. Full decentralization and "censorship resistance(aka freedom)" are important when there is a threat of property confiscation, which will become increasingly relevant when states become desperate for more revenue (already happening). 6. People don't find daily utility in fast decentralized transactions? That is ludicrous. 7. Trust. That's the whole point of btc protocol. Achieving trust between unknown parties (refer to Byzantine Generals Problem) 8. The section on blockchain is good and valid.

Re: Why the practical applications of Bitcoin will be limited

#46

Post by vectorpush »

smokeyj wrote: post #25

We've moved past the "Bitcoin will die" phase to the "Bitcoin may not be the largest technical innovation since the internet" phase. I'm okay with that.

That's not a "phase", that's just a rebuttal to a hyperbolic claim often made by bitcoin fanatics.

Re: Why the practical applications of Bitcoin will be limited

#48

Post by sharpneli »

NoMoreNicksLeft wrote: post #20

> At the same fee level, transaction count must increase 250 folds. Or, How is this not plausible, given how few transactions must occur there?

The transaction count can only increase if they allow the block size to increase. Right now it's 1MB at maximum.

The community is torn about the issue so it's an open question if it will ever happen.

Re: Why the practical applications of Bitcoin will be limited

#49

Post by GlickWick »

jgrowl wrote: post #40
GlickWick wrote: post #11

The title is very click-baity, I think we can all agree on that. However, a lot of the points made within are completely legit. The Bitcoin world is rife with scams and one of the primary uses of Bitcoin is to engage in illegal transactions. The benefits of de-regulation are obvious, but the downsides are killing it right now. A lot of people are stuck on the "regulation is evil!" rehtoric due to the current issues w…

I find arguments against Bitcoin by talking about scams and illegal transactions completely baffling. The same thing happens with cash simply because it is a medium for exchanging value. It is an inherent property of currency.

It is, but it's much easier to prevent these types of scams with cash. As much as people hate banks and such, things like chargebacks are also possible in more extreme situations. In Bitcoin, once your money is in their hands, you're toast.

Re: Why the practical applications of Bitcoin will be limited

#50

Post by theandrewbailey »

moe wrote: post #2

Congrats. That may be the dumbest bitcoin-related headline ever created (and the competition wasn't weak to begin with).

Reason 4: Bitcoin doesn't transmit ideas effectively, thus ruling it out as any internet "replacement" or successor.

Wait, that's the only reason it won't.

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