Is The Bitcoin Civil War Over?

Authored by Mike Krieger via Liberty Blitzkrieg blog,

Before I get going, let me start out with the usual disclaimer. I’m not a Bitcoin expert, nor do I claim to be. I love people who live and breathe Bitcoin every day, and I have the utmost respect for all of you, but that’s not me. As you can tell from a quick glance at my website, my current focus revolves around the current political environment as well as the geopolitical implications of a declining U.S. empire. That said, I’ve been involved in Bitcoin since 2012, and I care deeply about it. In my opinion, globally interconnected humans functioning within decentralized systems of economics and political governance provide the best framework for the human species going forward. We have the tools, we just need the desire.

Today’s post is about an alt-coin that is about to fork from Bitcoin, led by a contingency in the civil war known as the big blockers. This piece is not meant for newbies, but is written for people who own Bitcoin and already have a good understanding of all the drama that’s been going on and may continue to periodically resurface after August 1. If you aren’t already up to speed on these things you should probably stop reading. The post will just sound confusing and won’t have much impact on your decision making anyway.

First of all, I don’t think there will be any debate around what the “real Bitcoin” is following the fork and creation of an alt-coin called Bitcoin Cash (BCC). This coin will be a pet project of big blockers wanting to both save face, and also potentially hurt the original Bitcoin (BTC). Only time will tell if some of those considered “bad actors” will try to target the original Bitcoin out of pettiness, but you should never underestimate what people with a lot of money/power and huge egos will do. History is replete with the ruins of the crazed actions of these types of individuals.

If you control your private keys, you should be able to access BCC sometime after August 1st. Some people are describing this as a dividend, although it seems more like an asset spinoff to me. Either way, BCC will have some sort of value on or around August 1st, and a market will start being made. So how should people concerned about potential bad actors on the side of BCC think about all of this? Let’s start with a few tweets from Whale Panda that I think are important to ponder.

With that in mind, take a watch of this recent interview of Roger Ver. Roger is considered to be one of the largest holders of Bitcoin out there, and owns bitcoin.com.

That video definitely made me feel that Roger could act in a hostile way following the launch of BCC. I really hope he swallows his pride and doesn’t go down that route, but we can’t make that assumption. I think we absolutely need to prepare for the possibility that some bad actors will try to harm Bitcoin using BCC. Here are a few more tweets from Whale Panda.

Since I think Whale Panda is onto something, the most logical way to defend against the threat from a market psychology perspective is to hold onto your BCC even if you think it’s garbage. You have to understand that if bad actors want to make Bitcoin look bad and their alt-coin look good, price will be a huge part of their strategy.

It might make sense to not dump your BCC right away, which could let bad actors control the entire float. If you do that, they can then dump their BTC on the market while controlling all the BCC and ensure it goes up while Bitcoin drops. I’m not saying this is my assumption, I’m saying its possible. As such, hold on to your BCC to prevent them from executing this strategy. Then if BTC does drop as BCC rises, you have dry powder to take the other side of the trade. The risk in this strategy is that BCC crashes right away and never recovers and you lose that free money, but if that happens you’ll still probably benefit from a rising BTC price.

At the end of the day, everyone should do what they feel is right. I could be completely nuts here. I’m just putting all of this out there in the event some of you haven’t thought through this potential outcome yet. I at least want people to be aware of what might happen. I have no idea of the likelihood of such a scenario.

Personally, I hope Roger, Jihan and whoever else don’t go down that route. If they do, they will be rightly demonized and remembered as the egomaniacs who tried to kill Bitcoin. Sure float your alt-coin and let people choose, but don’t start playing nefarious games. If you do, the Bitcoin community will rally together like never before and it won’t be good for you. I ask that you stand down.

Comments

HRH Feant2 (not verified) tmosley Fri, 07/28/2017 - 22:25 Permalink

It is a petty fight and could cause BTC / BCC to self destruct.

BTC is already too complex for most people to understand. This is petty bullshit driven by greed and power. Never a good combination.

I own BTC. Have only had a GDAX account for a few months but I was able to double my initial investment. My initial investment was $270. Nothing major. Fun to double it, via trading, in two months. But this insider fighting crap is bullshit. Not good for the brand.

As I said above I went to cash and am on the sidelines. Except for .05 and I may cash that out before 8/1. I hate arrogant people. And the guy in the video is way too arrogant for my taste. BTC is a trading mechanism. Period. It isn't the cure for cancer.

In reply to by tmosley

HRH Feant2 (not verified) tmosley Fri, 07/28/2017 - 22:58 Permalink

Central banks will kill themselves. People can't handle radical change. Some of you need to chill the fuck out. Seriously. I like being able to have a local bank account, pay bills, etc. Easy. My bank has been around prior to the 1929 crash and is doing just fine, thank you very much! They hire local people, do local loans, the usual. Not all banks are horrible. Get a fucking grip on yourself.

This is a transitional period and acting like Ike a fucking know-it-all is not helping your case.

In reply to by tmosley

Zero_Ledge HRH Feant2 (not verified) Fri, 07/28/2017 - 23:59 Permalink

Just another day for the "future of money" and "a store of value".  Notice how every single post here is about the investment (i.e. gambling) aspect of cryptos and not the supposed spending/saving aspect. What are you guys going to spend your "free" BCCs on?  Of course you don't want to spend them, because it's going to triple in the next month, right??  Don't forget to track your cost basis since the IRS will want a cut of your gains.  And remember, GDAX has all your info, ... you know, just in case.It sure does quack like a duck:"It might make sense to not dump your BCC right away, which could let bad actors control the entire float. If you do that, they can then dump their BTC on the market while controlling all the BCC and ensure it goes up while Bitcoin drops. I’m not saying this is my assumption, I’m saying its possible. As such, hold on to your BCC to prevent them from executing this strategy. Then if BTC does drop as BCC rises, you have dry powder to take the other side of the trade." 

In reply to by HRH Feant2 (not verified)

Mr. Universe Zero_Ledge Sat, 07/29/2017 - 00:26 Permalink

Do you not see trading Bitcoins for profit is moneychanging? It has no other purpose than to enrich yourself at the expense of others. It is the main reason the world is so fucked up these days. Congrats on your gain, but realize you produced nothing and wasted effort all for a bit in a computer somewhere? Wake up people!

In reply to by Zero_Ledge

Lore Golden Phoenix Sat, 07/29/2017 - 04:28 Permalink

Crypto is nothing, with a unique trackable identifier.  I don't know about you, but I'm getting tired of systems that depend on nothing for a unit of measure in valuation, never mind a store of 'wealth.'Can those rice-sized microchip implants carry a bitcoin wallet?  In that case, every human being may eventually be issued some form of crypto identifier to serve as ID.  Be an obedient citizen, or your wallet will be frozen... "Achtung!  You veel accept Ze Mark und you veel like it!"  

In reply to by Golden Phoenix

Golden Phoenix Lore Sat, 07/29/2017 - 13:14 Permalink

Those new chips in debit and credit cards are designed for the new readers police carry. They just wave the reader past your wallet pocket and *presto* instant asset forfeiture. Drains the money right out of your account.Wouldn't work at all on a cryptocurrency paper wallet. Might work on a keychain hardware wallet if they have a spare quantum computer in the cruiser. They don't.You're worried about the wrong chip. The one you're worried about you already have.

In reply to by Lore

Dsyno Mr. Universe Sat, 07/29/2017 - 13:38 Permalink

"Congrats on your gain, but realize you produced nothing and wasted effort all for a bit in a computer somewhere? Wake up people!"How is that any different from your stock investments? It's not. Your 401k and bank accounts are nothing but computer bits... And if you're lucky, you can exchange those computer bits for paper.Perhaps you need to wake up as well. It's all a game. All of it.

In reply to by Mr. Universe

GoldVu Zero_Ledge Sat, 07/29/2017 - 08:05 Permalink

Pretty much 99.9% of money going into cryptocurrencies is as a speculation the price will increase so the investor can take a profit. The money isn't going into it to be used as an actual currency.You can see this by their velocities (v.basically, how much of its market capital gets turned over each day).Bitcoin has a velocity of around 4%, which is slower than sludge. Such a low velocity shows it is not being used as a currency but for speculative purposes. Most are in single digits.The low velocity means there is low liquidity. That low liquidity is why the price is so volatile - it only takes a reasonably sized buy or sell order to whip the price like a bad monkey. Bitcoin being legalised by countries like Japan does not suddenly make it a transactional currency it only increases the pool of speculative money flowing into it.A currency can not perform its duty as a transactional medium if its price is not stable and / or liquid enough to flow.A crypto exception is Tether which is fully backed by US Dollars. It has a velocity of around 90-95%. Backed vs unbacked cryptocurrencies having different velocity rates? ...HmmmThe volatility and lack of certainty around the stable future of cryptocurrencies also greatly affects cypto exchanges. They can easily go under if too much liquidity gets sucked out and they can't easily perform their duties as an exchange when massive price swings are constantly occurring. They need stability just as much as the users.Exchanges like Kraken have agreed to take on BullionCoin (http://www.goldvu.com/bullioncoin.html) due to it being a digital currency that is 100% backed by gold & silver (and so deeply liquid) , has high velocity built into it and expected low price volatility (stable). The exchanges know that if a cryptocurrency finds itself in trouble then the liquidity will simply move into a stable digital currency like BullionCoin and not exit the exchange.It doesn't matter about cryptocurrencies forking here or there. They will still have flaws tied to them as they are a purely digital entity - they can't exist as a funtioning currency in the off-line world (which is never going to go away no matter how digital we get).Because you can redeem your BullionCoins in exchange for the physical gold / silver backing and have it sent to you at home, BullionCoins work as both a digital currency and as an off-line hard currency whilst retaining its value in both worlds.Whilst I give thanks to Bitcoin for what it's spawned - it's time to let go of it and move onto the ones that actually do deliver what Bitcoin aspired to be, but never will > BullionCoin

In reply to by Zero_Ledge

dark pools of soros GoldVu Sat, 07/29/2017 - 09:02 Permalink

nice infomercial ace... most people dont even carry cash anymore and whores even have swipe readers on their phones

your backed by bullion crap is until it isnt...as long as there are markets to trade everything is backed by anything at value. BTC price is still establishing itself as it grows or falls, to say it needs to be stable means you think the world should be controlled....i.e. you scared of real freedom

In reply to by GoldVu

CPL tmosley Sat, 07/29/2017 - 11:09 Permalink

It is worth absolutely nothing but the end result of the work accomplished.  Right now BTC is running heavy number crunching to solve a math problem that requires brute force.  Whether or not the speculators speculate isn't even a thing to care about, all that matters is 21 million pieces of cryptographically sealed information are finished.  How that happens is by putting the carrot infront of the horse and cart.  OR IT"S NOT GOING TO FUCKING MOVE AN INCH...along with all of you.  Stagnation, death and extinction are the rewards for that option.

In reply to by tmosley

SILVERGEDDON tmosley Sun, 07/30/2017 - 18:47 Permalink

Only a short bus special school hockey helmet wearing individual would think digital fart bux would have real lasting tangible trading value through history, governments, and currency failures. Congratulations on painting yourself into another corner live on a  fabblyous teevee episode of " Pumpers Corner, Starring T Mosley Pumperton Da Turd. " 

In reply to by tmosley

Golden Phoenix GoldVu Sat, 07/29/2017 - 13:20 Permalink

The point of blockchain is elimination of counterparty risk. Blockchain 'backed by gold' reintroduces it. You have to accept someone's word the gold is still in the vault or ever was. There are good arguments for holding physical metals in addition to cryptocurrencies but buying a promise there's gold in a warehouse is like buying a cloud mining service on the promise there's a warehouse of mining equipment somewhere - just plain stupid.

In reply to by GoldVu

Eager Beaver GoldVu Sat, 07/29/2017 - 16:08 Permalink

Do you mean "stable" like this?http://www.zerohedge.com/news/2013-12-04/complete-and-unabridged-histor… wonder how much of a percentage of the money going into stocks, bonds, forex, real estate, precious metals, oil, corn, and pork bellies is being put there as speculative bets?  Or, are we all to believe that money going into these traditional instruments is really "investing"? You think they don't want a return on their investment? Do they really care about oil as an energy source, or corn as a "food"?  Please, it's all a big fucking fake-ass casino, and everybody knows it.As for Krieger, he just goes to show himself as more of a clueless fuck with every article...

In reply to by GoldVu

fattail tmosley Sat, 07/29/2017 - 09:37 Permalink

What am I missing here?  I thought there was a limited amount of bitcoin and now suddenly its splitting and people are getting something for nothing out of thin air?  When is it going to split again?  I can see the utility of having a medium of exchange outside of the fiat currency, but only if there is some limit to the supply.

In reply to by tmosley

Schmuck Raker fattail Sat, 07/29/2017 - 10:29 Permalink

It's probably better/easier to think of it not as a 'split', but as a 'clone' with defects.If you're a noob holder the main thing to do RIGHT NOW is get your BTC OFF any exchange, or wallet that isn't 'cold storage'. That is to say 1) secure your private keys personally, and 2) personally Verify txs to AT LEAST 6-10 blocks. At least for a couple weeks, or things seem a more settled.

In reply to by fattail

Stackers fattail Sat, 07/29/2017 - 20:33 Permalink

As said it's not a split in the true sense of the word. BCC will create a new blockchain based off the original BTC blockchain and run parallel. A split would mean you would have 2 different blockchains running in parrallel, but trying to access the same BTC. This will be a completely new chain that will clone your BTC into BCC and not allow them to go back and forth between the two. If you own BTC and have access to your private keys at the time of the start of the new BCC chain you can export those keys into a BCC complaint wallet while still having your original BTC in the first wallet. This where the "free" BCC comes from. The trick is to make sure your BTC are in a wallet that you can access the private keys from at the time of the start up of the new chain so that you can export them.The new BCC chain is set to activate Aug 1

In reply to by fattail

disagreeableness Raffie Fri, 07/28/2017 - 22:17 Permalink

I did the same, and have made the same observation. Though I think it pays to take a longer view, which in the world of crypto is anything beyond 90 days. More than any other, LTC seems determined and capable of becoming the issue with something approaching universal utility. It's fun to jump into something new, ride the wave a bit and make off with some $, but I put that straight back into Litecoin. 

In reply to by Raffie