Bitcoin is within sight of its all-time peak of just under $20, hit in December It debuted in at zero and was last trading at $18, Going from $18, to $, in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said. “I have seen bitcoin go up 10X, 20X, 30X in a year. John Carvalho on Being one of the rare free and open Bitcoin a Bitcoin enthusiast, this and I am particularly a Long Time Bitcoiner But I obviously and or a Bitcoin enthusiast, John Carvalho is the platforms to incentivize and facilitate Bitcoin adoption, self- and rhetorical talent at John Carvalho . In this episode, I talk with John Carvalho from Bitrefill, @BitcoinErrorLog on Twitter. We discuss why John feels the need to defend Bitcoin, the types of at.
Carvalho bitcoinJohn Carvalho on Lightning and Bitcoin’s Layer 3: ‘We’re Thinking Way Ahead’ | Bitcoin Insider
Spectrum was created as a way of moving tokens to the Lightning Network but soon a need for DEX decentralized exchange functionality appeared.
As a long-time bitcoiner, Carvalho is very cautious about the implications of creating sidechains and extra layers. He understands that the Lightning Network and the Liquid federated sidechain can potentially have a negative influence on block space and miner incentives but, at the same time, believes that market dynamics and the system of incentives will find a way to sort it all out. On one hand, he is disappointed that the resistance to big blocks has actually resulted in a block size increase via SegWit, thus putting a greater burden on node operators and contributing to network centralization.
It would also be easier to send blocks via radio waves and make them literally more portable. Article source. The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. A lot of people that started Bitcoin around the time I did have the same story. And I spent probably six, twelve months just fully immersing myself deeper and deeper and deeper.
And everything just kind of clicked for me and I never got out of that black hole, that rabbit hole. Basically, from the first day I hopped into the Bitcoin TOC forums, and popped onto IRC and started chatting with people and stuff, it was done for me. Bitcoin swallowed me whole. John Carvalho : What is Bitcoin?
So, basically, instead of having customer protection, you have merchant protection. Peter McCormack : Okay. Usually, when I prepare the structure of my interviews I get quotes from people.
John Carvalho : Yeah, I was feeling a little poetic I guess. But no, that concept is important to me. Yeah, I believe that Bitcoin will win, I believe that Bitcoin is the best. It was a couple of things or a few things I had to learn about at the same time. Do you appreciate that? John Carvalho : I do. I actually really appreciate that and your story in particular. And I spend a lot of time on it, and I have no idea why. And when I work hard at it, and when I see someone that is refusing to try on these shoes just for a minute and listen, I do get frustrated, and I can be a little bit mean I guess.
We have to figure out how to get them earlier, but it does work, people do figure it out. Peter McCormack : Right, I was muted.
I thought I was muted. And the turning point for me, actually it was two things. Firstly getting into arguments with Ripple Coiners. I kind of thought this must be how someone like John, or Dan, or Medium Squeeze. All these people just having the same argument over and over again. Peter McCormack : You come in with an argument, you kind of have to find it yourself. And I went through all the email threads from the S2X mailing list.
All these people, these names that you see discussing. And what was quite interesting is I noticed that there are a number of prominent names who were really not arguing against S2X, but just trying to technically ensure the right things were happening. And then I was seeing all these Bitcoin error log posts where you firmly just not having it. And when I see people being nice, I want to make sure people realise the cold hard part of it and try that on as well.
But there were a few things that you put in there…. This project and its supporters are a joke. You were pointing out that minor support would be futures pricing. But I thought what was going to happen is it would be an upgrade, and Bitcoin would continue.
And what I realised, yeah, this is just another coin. And then I ended up going through all the threads and just reading all your points, and I was like ah, shit, I think I need to write to John and apologise to him.
And therefore, why so many other things feel like an attack on Bitcoin. John Carvalho : Well, yeah. And Bitcoin probably does need an army to defend its money. Monies in governments have been so integrated for so many centuries, why should we think that will stop? I just have too many ideas and try to do too much. Peter McCormack : I think a lot of us do that. Any decision they make, any upgrade, any change to the protocol is going to affect Bitcoin that people own.
And that for me is a very clear difference. And then reading the responses, again, not everything was always correct, but I kind of felt like I warmed to the approach of the Bitcoiners and felt a little bit cold by the reaction of the Ethereum community. John Carvalho : Well, what Ethereum succeeded at was capturing the hearts and minds of programmers. Young programmers and people that were interested in making software and things like this, they saw this as a way to integrate the concept of money and getting rich with fucking around making cool Apps.
And just make things. Not really think too hard about the actual fundamentals of blockchain and Ethereum, and what it should be worth, et cetera. And it becomes really hard to make them care about that because it pumped so hard, you know?
It went up so much, and the humans in this space, at least they have a very difficult time decorrelating the value of something in the marketplace and the price of it, and speculation on it, from its actual success or usability. There was another thing that I wanted to say that you made me think of. You talked about how Bitcoiners have been around a while when we explain something that kind of degrades over time.
Well, in the first few years that I was around, Bitcoin maximalism was way more hardcore than it is now. Bitcoin maximalism is more like Bitcoin extremism. A real Bitcoin Maximalist, if you were around back then.
That includes small software upgrades from Core, that includes any suggestion of a hard fork from anyone for any reason. And the original Bitcoin will never stop being mined. But in the end, the only thing we can do as users thinks of every single thing people want to do to Bitcoin as an attack.
In the grand scheme of things, how do you feel about this? But I think some of it is good and some of it is scary. Also, Bitcoin is excited about Bitcoin ETFs, where all keys are held by the centralised custodial third party, thus introducing massive system risk into the market. If we could validate and ensure that everybody was withdrawing their coins from all the exchanges, that would be an interesting thing. I think there are going to be tons of people that just leave their coin on there.
And any of the people that really feel deeply about this philosophy of holding your own keys probably already have the Bitcoin withdrawn anyway. John Carvalho : I think that was a spin on the news outlet that released that. And they become fractional. And they do all these little tricks to take your money away, and eventually, they get closed down or they die.
Peter McCormack : Right. Are there any other projects you like? John Carvalho : This is mostly deriving from me always thinking in a contrarian way. This is just my way of finding the path to what action makes sense. The current reality is there is a high demand for altcoins. They are serving a purpose to people. But the fact is, they exist, and we should try to understand why. And if we understand why, we can make a better argument as to why they may not in future.
Like I told you earlier, I still think Bitcoin is the primary, but these things do exist. And there may be utility in just the simple idea of transferring value on a blockchain, you only have to trust it while you use it.
You can use them to transfer value. But if you have some kind of reason, some kind of need to move value over crypto as cheaply and as fast as possible, maybe altcoins sometimes are better. You just have to make sure you can realise the liquidity you need for the moment you need it.
Talking about Bitcoin being a fungus or a living organism. This is a concept I wanted to write about, but I was too lazy. Not just because it sparks your creativity, but because maybe it will help us in design theory in future. If centralisation matters, is only one coin good enough? And would anyone use it? People are putting all their money into Bitcoin.
But there is kind of really a fintech use case, but someone can borrow dollars from BlockFi, that can then get transferred to their local exchange, which they can then transfer into their local currency.
And then I saw something yesterday about drop gangs. Have you seen about drop gangs? John Carvalho : No. What they do is they create these private chat groups which people will be part of. Someone chooses to make a purchase, and then they will give them coordinates and a location of where the drugs are being left. John Carvalho : You ever hear a project called drop zone?
Peter McCormack : No. John Carvalho : This was a project by Christa Rose and some guys I think, where they wanted to do something similar, complimentary to Counterparty. They were using basically a blockchain as a way to establish drop zones for people to make P2P trades.
Yeah, I think black market stuff, anon stuff, I have some kind of weird theories about that too where I wonder if fungible coins are and need to be fungible themselves as networks? In other words, I used to talk for a while about how Bitcoin fungibility, how people confuse the concept of fungibility with privacy or anonymity.
Because we need to see how much they will be attacked because of their anonymity. And it might be better to have something small like Monero performing this and kind of being under the radar. You only need to use it for transfer. And another weird theory I have is I think that this kind of shows in the mineral price as well. You can almost see when people are seeking liquidity there, and taking liquidity, just to move money around. John Carvalho : Well, the reason is to speculate. Do you know what I mean?
Look, Bitcoin, if you want to save money long term, there is no better way to do it than to hold Bitcoin. But you can make a lot of money holding Ethereum in the right six-month span. You can make a lot of money holding Monero for the right pump.
But as far as using it as a store of value, why would you gamble? Peter McCormack : Well, equally you can lose money by getting it at the wrong six months.
John Carvalho : But you at least feel better now? Peter McCormack : Do you know what, I feel a couple of things. Firstly a huge amount of regret.
I lost pretty much the majority of my Bitcoin. And if my loss there is collateral damage for the growth of Bitcoin, I can take that on. And I still know a lot of them. And I really feel like even though trading is by far the biggest use of Bitcoin volume right now, and crypto volume in general, by far, by far, we can talk about this a little in relation to exchanges in actual crypto businesses.
They have to decide do I want to be a professional trader as a career, and do I like this, and can I handle it? Or am I just gambling and pretending, playing a game until I lose all my money? And go home and cry when I lose and feel like a dirtbag for as many years as it takes me to give up. Peter McCormack : And do you know what? Not worrying about the price. And when I look at the end of the month and in December there were , downloads. And the fact that I can make a living off this is great.
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