Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom), published with permission.
Editor's Note: This article comes from
Chain News ChainNews (ID: chainnewscom)
Chain News ChainNews (ID: chainnewscom)
, published with permission.
Since the completion of the third halving of Bitcoin production, it has attracted the attention of mainstream society one after another: Harry Potter author JK Rowling seeks to popularize Bitcoin, and Goldman Sachs' investor conference call will also discuss the impact of current policies on inflation, gold and Bitcoin. Currency Effects...
At 8:00 pm on May 25th, Beijing time, the sixth episode of Crypto Tonight "Dialogue with the Hardest Bitcoin Supporters: Bitcoin's Origin, Interesting Stories, and Future Outlook" was successfully broadcast. Crypto Tonight founder Yama invited 4 A hard-core supporter of Bitcoin shared their interpretation of Bitcoin and their future prospects.
Bithan Founder: Bitcoin can be used to connect to Latin American countries without embargo from an intermediary country
View full program video availableclick hereLooking back, the following is the transcript of the entire program of this episode, and the content has been edited.
Su Zhu, co-founder and CEO of Three Arrows Capital, and several guests discussed the reasons and significance behind USDT's growth
View full program video available
click here
Looking back, the following is the transcript of the entire program of this episode, and the content has been edited.
The 4 guests of this program are:
Adam Back, Co-Founder and CEO, Blockstream
Chun Wang (王纯), co-founder of F2Pool, founder and CEO of stakefish
Alberto Vega (Beto), Founder of Bithan, Former LAC Country Manager of Bitpay
Su Zhu, Co-Founder and CEO, Three Arrows Capital
How did these hardcore Bitcoin supporters get into the circle?
Yama: Good afternoon everyone, welcome to Crypto Tonigh, I am the host Yama. Today we will talk about the origin, past and future of Bitcoin. Let's start by welcoming Blockstream CEO Adam Back and briefly introduce himself. Can you briefly describe your background and how did you get into the blockchain/bitcoin industry?
Adam Back: I've been very interested in electronic cash since the mid-nineties. The first time I heard about Bitcoin was in 2008. A guy who called himself Satoshi Nakamoto sent me an email. I didn't realize it was a pseudonym at the time and thought it was my real name - of course, maybe it was a real name.
He asked me about the Hashcash citation and sent me a link to the white paper on "Electronic Cash".
Then, I sent him some information about B-Money. B-Money has a certain correlation with the concept of Hashcash, but B-Money is just a design that has not been realized.
Since 1998, some people have begun to discuss how to deploy electronic cash without relying on banks, and also began to think about how to deploy the system in a decentralized manner. DigiCash, which relies on a centralized database, had to declare bankruptcy before. I think we need to find a way to completely decentralize money.
Yama: I know you are the creator of Hashcash. In 1997, you came up with the concept of Hashcash, and it's also referenced in the Bitcoin white paper. Adam, you have communicated with Satoshi Nakamoto before, so what do you think of Satoshi Nakamoto?
Adam: Many people speculate who Satoshi Nakamoto is, but I think Satoshi Nakamoto may not appear in the public eye again. It should come as no surprise, however, that people might gravitate towards a book's author information, including geographic location, office lows, etc., to find a person.
Yama: Thank you very much Adam Back for sharing. Next, we invite Alberto Vega from Argentina, the founder of Bithan and the former head of Bitpay Latin America.
Beto: My connection to Bitcoin was due to bitcoins.com. This domain name belongs to my good friend. One day, someone suddenly wanted to buy this domain name at a high price. We felt strange, so we started researching and discovered Bitcoin.
A few years ago, I was thinking: why can't we integrate Bitcoin into companies in Argentina, which will need a more secure Bitcoin in the current economic situation.
At work, I started trying to integrate with SAP (Enterprise Management Solutions). At that time, my friend held a bitcoin conference in Argentina. I met Tony Gallippi (BitPay co-founder and chairman) at the meeting. During the conversation, I talked about what I did in college and my understanding of Bitcoin. The next day, he invited me to work at Bitpay. After that, I went to work at Bitpay.
Yama: I met Beto last year in Buenos Aires, the capital of Argentina. Soon we became good friends. Beto loves China and Chinese culture very much. Beto also knows Chinese Kung Fu as well as Zhan Zhuang and Yiquan. In addition, Beto also named his daughter "Sophia Mei". Meimei means beautiful and pretty in Chinese! Thank you so much for coming. Let's welcome Chun Wang, the co-founder of F2Pool.
Wang Chun: For me, I first learned about Bitcoin on the slashdot website in 2011. But because I was busy with my work, I didn't care at that time. After the work was done, I started to study the concept and working principle of Bitcoin on the wiki. The next day, I bought 2 graphics card GPUs and started mining bitcoins.
Because I played SETI@HOME in the early years, I am familiar with this area. After that, I felt that mining was relatively slow. From 2011 to 2013, I cooperated with others and bought a lot of machines other than graphics cards to start mining Bitcoin. Then start operating the mining pool. Running a mining pool is completely different than mining bitcoins yourself.
Yama: Thank you very much Wang Chun for sharing. Next welcome our old friend - Su Zhu. Su Zhu is the co-founder and CEO of Three Arrows Capital.
Su: A few years ago, I discovered that there were structural arbitrage opportunities in the Bitcoin market. As a forex trader, I think the world needs a decentralized monetary system that is independent of countries. Bitcoin has created a complex parallel financial system.
How to popularize Bitcoin?
Yama: Next, I would like to ask Adam, how to answer JK Rowling's "I don't understand Bitcoin" from your perspective. Is there any way to quickly improve people's awareness?
Adam: It's been a lot of fun answering that question, let me think about it... I don't want to get into anything technical. You know, technology changes over time, and when gold was first used as money, it seemed weird to people, so in an online world, a technology can develop more online money, similar to web money - we can extend this metaphor to people who know nothing about Bitcoin.
Yama: Okay, thank you, Adam, what do you think, Alberto?
Beto: I'll explain it in terms of infrastructure. Just like the Internet has changed the way of life, for example, we communicate by phone. In the beginning, the communications companies said, no, we're not going to use this technology because it changes everything and we don't need it. But now, every communication company uses IP/TCP as infrastructure because it is cheaper and faster. So I think payment and transfer of value and so on will achieve the same goal. In the future you may also use Bitcoin and this technology because it is cheaper and faster.
Yama: Okay, Chun, how would you answer?
Wang Chun: I know about the book "Harry Potter", but I didn't know who wrote it until you told me last week. So I don't know, maybe I'd say the same thing, maybe Adam. But if you don't believe it, then we can keep watching, I don't have time to try to convince you, sorry.
Adam: That's a good sentence. I found a tweet. There is another topic on this topic, because this topic has been going on for many days, some people are still discussing, although there are actually many fake JK Rowling accounts and other famous people, but thanks to JK Rowling and Coinbase CEO Brian Armstrong’s reply, and encouraged the fake JK Rowling twitter account to deposit Bitcoin at Coinbase. But I think don't do that. We're actually losing money, which is a bad idea. But all in all, it was fun.
Wang Chun: I feel that the power of tradition is so powerful. You know that if you try to convince people in the past, for example, let most people believe that the sun is located at the center of the universe, although what happened in the past, only history can finally decipher it. Who can say Tell the truth? As you point out, convincing people usually says good results, but history will tell. Hundreds of years later, we will see (results).
Yama: What about you, Su?
Su: The scarcity of numbers is an important point. I think the concept of digital scarcity is starting to catch on in traditional necessities and mainstream products. Because first of all, in our generation, we've grown accustomed to the fact that things on the internet are just as valuable as things in real life. Second, I think you guys know it's been around for over 10 years and nobody asked when it was because they haven't changed.
Now people just ask, will it go away? What is the right price for it? Should I buy it? Or I think the effect has gotten us to a point where people now see Bitcoin as a form of scarcity. I think, at least for people in my city, some of the high net worth people here do think that way, they don't know where to put their money now because they used to think about real estate. But the way things have changed now makes them wonder, maybe it can't be acquired through property, maybe it can't get a visa to enter that country, maybe it can't be sold (assets) or attacked.
So people question whether real estate has a store of value. I think especially for Chinese investors, as mentioned in some articles, such as investors diversifying from Canada and Austria, this is like a reversal of the 7-year trend. Did they hide the money, buy a Vancouver apartment, and then a Melbourne city apartment, that’s their own money, it’s like it’s always been there.
Now that there is gold too, the difficulty in accessing it is knowing and buying it for a minute. I think that's why the right macro hedge funds are interested. People actually convert Bitcoin to scarcity currency, so there is no need to explain whether the other party will supply it, it has the strongest community consensus, and it has also gained consensus in China, so it will be able to defend scarcity and some right.
Most Memorable Moments About Bitcoin
Yama: So for me, I think the whole system is like a globally distributed bank with transparent public facilities, it is open to anyone, no one controls it, this bank only issues one currency called Bitcoin, and the issuance is limited 21 million pieces. As Su you mentioned, there is no inflation problem, and Bitcoin can also be used as the bank's issued stocks, which is a long-term planning understanding. I know the guests have been in the crypto space from a very early age, like 2000, not 2009 to 2011, 2012, 2013. So what are your most memorable moments and days?
Alberto Vega: I founded Friend of Mr.Bitcoin in Latin America, and we took Mr.Bitcoin to Brazil World in 2014. At that time, we were inspired by an idea that the code can be displayed through Bitcoin, because an American Entering a pin at an American football game, showing this "card" and saying: Hey, mom sent me some bitcoins and showing the pin or something like that.
We took this idea and wanted to do something compelling and show people the good side of Bitcoin. We started Goal, going around different parts of the World Cup, showing this QR code and getting people to donate for the kids. It's been great because we've done some really good things with kids from some countries. And to be sure, Bitcoin can be used for charity anywhere in the world. So I think it's one of the funniest things we've ever done.
Yama: This is very interesting. Last year at the Latin American Bitcoin Conference, when Adam was interviewed on the spot, Mr.Bitcoin was walking around behind Adam, haha. Very fun. very funny. I'll send the link back to Adam. So Adam, what is your most memorable moment?
Adam: I think the most interesting and positive outcomes are Bitcoin forks and solutions, such as user-activated soft forks (UASF), which show that Bitcoin is very difficult to change.
That was in the fall of 2017. After Bitcoin forked, the price rose four or five times to $20,000 within a few months. I think until then, no matter how long the fork has been going on for a year or how long, people are not sure, which is frustrating. Facts work out the way market activists do. First of all, the price is such that some people lose 10%, and some people lose more, which is interesting. A lot of people didn't know what to expect, and people started taking risks.
But the fact is that it's settled, and people don't know what's going to happen, and they don't know how much the financial pressure on big business will be in the future. Bitcoin, on the other hand, is like market participants transacting. This became part of Bitcoin, a guaranteed asset as immutable as gold. I think if bitcoin can change any business interest, it doesn't matter which business interest, but if bitcoin can change and influence, it's not that difficult.
It is a fact that the game theory and economics of the market are actually much more powerful for Bitcoin. People's expectations are a very positive thing. There will also be profits if you sell the right things in the right direction. So there's been a lot of interesting deals during that time as well.
Yama: Well, as you mentioned the price, Su is actually doing bitcoin transactions every day, so Su, when were those memorable moments for you?
Su: For me, it's more of a personal story. In 2013, Bitcoin was very active in some cities, a large number of people were actively buying, and the same thing happened in China. I took a flight with my girlfriend at the time (later my wife). Let me start with the result: I was very hurt at the time. Actually, my family and parents are very welcome to go to Beijing, so my parents arranged a hotel for us in Beijing. When I check in, I need to sell the tokens. But I found out that there is no internet, the network is very bad, the hotel and people at the time don't like 4G network, and 3G network is not very good. So I told my girlfriend we can't stay here and need to check out.
I said, let's call a taxi. We will go to the best five-star hotel in the local area. So we had to take a taxi, we arrived in the middle of the night and they quoted me a very high price. Everyone was mad at me the next day because they thought I was showing off. Then the next day, I found out I had lost an expensive watch, went back to look for it, and finally found it. This is very memorable for me. Because in retrospect it's like I saw token price risk as greater transaction risk, and now I see that price risk is much less than transaction risk.
Yama: We are interested in transactions because you mentioned that mining is actually trying to ensure that network transmissions are secure. So Chun, what is your most memorable moment with Bitcoin?
Wang Chun: I think one of the most memorable moments, maybe in March, when I just finished my business, I could get information from the API and access the network. At that time the price dropped slowly, and it dropped very slowly, it took more than an hour, and finally went from 1 to 0, I don't know what happened, the next morning, I checked, maybe because foreigners like 02, this is Get in touch, it's fun.
Yama: Okay, that's it, we won't see these anymore, it was really scary, thank you guys. So let's move on, I know Chun has some questions for Adam, Adam is ready, there may be too many questions for you tonight.
Wang Chun: For me, I thought of Blockstream, but I am most interested in Blockstream's satellite project, will it help our civilization and help other companies.
Adam: Actually, we don't have satellites because it's very expensive to launch them. So what we did was rent 4 satellite bandwidth and 6 coverage devices. We tried to choose different satellite companies, different satellite ownership, but none of them could provide interim service. In many places there are two satellites covering the same area or overlapping areas. I think the question of centralization is interesting. When it first launched, a similar question was asked: Do you have to trust Blockstream now?
So I guess the question is, do I have to trust Blockstream? Is this better? I think the answer is, because the data flow is self-validating, because you can see proof of work, you can cross-validate. This eliminates the need to rely on the Blockstream system. Each node has connections, with an average of 8 connections. Let's say one of the connections is much faster. So you end up with all the data but still have to double check, like another slower link if you have a satellite connection, if the software allows you to have multiple priorities on the satellite connection network connection, there is another slower Slow connection, but longest chain can be checked.
So if the satellite is sending me some wrong information, this can be detected. Because if you just need to sell now, you are trustworthy, but have proof of work. If the information is wrong, other proofs of work are slow, or wrong, you can detect that too. Late last month, we increased our bandwidth a lot and now we have 300 megahertz. Thanks to a lot of optimization, we can get 25 times more data.
We turned on the ability to sync the entire history. Like, if you connect like that bad node, and then wait about 20 days, even if you don't have an internet connection, it will actually fill up. So I guess I think why it's interesting is partly about increasing Bitcoin's global connectivity so more people can run a full node on the network. So, if you're in an office like you are, your internet connection will be fast. So running a full node is not a big deal. But for many people, that's either expensive or high. An internet connection is one thing that can make it fun for people to transact.
like malta not far from egypt, a few years ago, they had a revolution and they shut down the internet or i guess the people in power cut it off and then they turned it back on, if you have bitcoins it helps to survive and Things like when the economic crisis is unstable, you want bitcoin to work in this situation, and the satellite network connection is an interesting prospect, and the satellite itself will send you a lot of data.
But there is also a way to send usage information, so we continue to develop new features for it. Another use case is just for business and extra connections. I think it's a good idea for mining farms that transactions can have multiple internet connections so that no one can send you the wrong information. If you only see today's part, you can think that the transaction has completed, but in fact it has been orphaned by a longer chain. So it's best to have several different connections to make sure you're on the longest chain. Satellite just goes from that, on satellite and other independent connections, once we broadcast, there is no additional cost to the user because it's sending the same data everywhere. We start selling satellite components. Now, you can buy different devices at different price points. The cheapest way is to buy a software defined radio and use a laptop for around $100. There are also tbs devices, about 50.
It can accept two different satellites at the same time, has two set points to set the orbit, and sends different data on different satellites. If you could listen to both at the same time, you'd get twice as fast, and go through the history twice as fast. 7 days, 10 days, and more room for optimization. So we continue to improve compression and error correction efficiency and so on. So it's interesting.
I think people like the idea of Bitcoin spreading in space, it feels like science fiction, and it's an interesting project. We've actually been surprised at how much the Pro's sold since we started selling, well, because they're three times the price of the normal product, but the amount that was bought was amazing, like one person bought five sets. That's about $4,000 worth of equipment at a time. So you can see that people like to use this device to do some things.
The use case we're thinking of as a backup for a remote mining farm can be connected via the internet, like a satellite two-way internet connection, plus this reception, can run a remote mining farm as a backup, which is very interesting.
Wang Chun: Of course, because the coverage of the polar regions is unknown.
Adam: That's the only problem, because the geostationary state is hardly seen in any other test.
Yama: So Wang Chun also plans to go to Antarctica, and this solution may be very helpful for him to mine there. I remember someone asking me questions once, like why Adam moved to Malta and lived there for so many years, how did you feel? Do you have any advice for someone considering moving to Malta?
Adam: If you have a European passport, it's easy to move there, I don't have a European passport because it's too complicated, but there are still ways to get a residence permit, which is a good thing for offshore companies, Internet games, movies and tourism A low-tax jurisdiction, plus it's the southernmost country in Europe, and it's warm. Almost everyone speaks English. The cost of living is also very reasonable. It's very safe here. So I really like it here, you can see a lot of Europeans. There are no taxes on cryptocurrency transactions, and you can sell some bitcoins without paying taxes. I was also able to attend a local bitcoin meetup. There are always a lot of newcomers here because the Nordic countries have high income and capital gains taxes.
About China's mining industry and security
Yama: Like you run a mining business in North America, how is the business there? How do you see China's changing role in the mining industry?
Adam: We have two mines, one in Montreal, Canada, and the other near Atlanta, Georgia, USA. I think this is good for decentralization. If you have dozens of countries, 5% to 10% mining between different companies and individuals, that's a breakthrough. No one person or country can change anything, and Bitcoin survives as a definitive technology.
I think that's great, it's a good thing that more and more people are getting involved in the mining industry, it could be interesting. Eventually, perhaps we will see sovereign wealth funds investing in mining. If you ask whether banks or hedge funds will be interested in Bitcoin, then we see that famous hedge fund managers like Paul Tudor Jones say that they have allocated more than 1% of their assets to Bitcoin, which sounds Looks like there's over $100 million in funding.
Yama: Brother Kevin Biao asked me to convey to you that if you are considering coming to China to expand the mining industry, you are welcome to find Brother Biao. He will be happy to be your trustworthy partner.
Wang Chun: For me, if it is Blockstream's satellite project, I would be happy to be a partner.
Adam: Maybe you can try mining in a remote application with advanced configuration. Mining is a very interesting place.
Yama: Chun, how do you think we can make mining safer and more decentralized?
Chun Wang: I also recently got a residence permit, maybe I personally committed to Adam, I also plan to stay there for a few weeks, they try to spread the funds. Yes, we must decentralize mining, but now more computing power is concentrated in China, so we are expanding the globally distributed team to make Bitcoin mining more decentralized.
Yama: Okay, I see, thank you Chun. There are also some related questions, such as National Geographic questions, Su should be able to ask.
Su Zhu: Well, obviously we are in an environment of rising nationalism, Sino-US conflict. Seeing more and more talk in the U.S. about mining on U.S. soil, what do you think about this heightened nationalism from a strategic marketing or national security standpoint? Do you think it has value? How do you think it will play out as geopolitical tensions grow?
Wang Chun: Let me think back to the changes brought about by the United States. I think some statements are narrow-minded. At the same time, I also feel that I have been given a mission to become a perfectionist. Before I got into bitcoin and blockchain, I spent a lot of time researching other things, and I think there is still a security problem with decentralization, at its core.
So when you see any issue on the world travel seat try to look at it from a corporate point of view people are talking about the internet this day and if you put all these concepts together they're not talking about security, maybe A blockchain and bitcoin will be built, so this is usually a single entity from any country.
It wasn't until about 100 years ago that people gave up on fine metals like gold and silver because the Industrial Revolution changed a lot of things. It makes the global economy grow, lets us make gold and silver, but that's no longer apparent, and creates a global money shortage. Before Bitcoin was invented. There is no such thing.
The emergence of countries like China, I mean the People's Republic of China and the United States also have a very short history. But if you look into the future, in a hundred years, there will still be a People's Republic of China and a United States in this world. There are whites, blacks, and Asians in the world. Because the technology in the past, transportation technology, communication technology is not developed, and internal changes have occurred, so it may not be a hundred years. But I think in millennia there will still be whites, blacks and asians, only if humanity is united as a whole, maybe we'll see earth people, market people, basically like this, so people who like to fight each other is no meaningful.
If you think about it like this, we do need a global currency, as far as I know, bitcoin starts to be used centrally, this philosophizing becomes an idea, and then it has a place in the economy, the next thing may be political, it will Seeing that each of our countries has a president and all the president has to do is delay declaring a pandemic.
We now have a president, communications speed technology is perfected, and day-to-day decision-making needs to be delegated to the president or king. But now that we have the internet, we can decide how the masses make everything smaller and cheaper. We don't need to distribute production elsewhere, so I think maybe there's no need for a president at all, and if we do, maybe some decentralized management should be replaced, and that should be the way to go.
Yama: Thank you, and since we talked about countries, I thought I would also discuss cryptocurrencies in Latin America. So Su, can you share our discussion questions, because Latin America is very different, compared to China, the United States, Europe and other countries.
What do you think about stablecoins such as USDT?
Su: I guess my question is about stablecoins, you will see in the past there were sometimes hundreds of stablecoins, are you seeing some sort of stablecoin growth? Obviously we see stablecoins like USDT, what do you think about that?
Beto: Yeah, good question, there are a lot of use cases for encryption right now, and people are feeling encryption coming.
Argentina defaulted on its debt for the ninth time on Friday, so people tend to ask how safe it is because the local currency is not safe. Assuming USD is selected, trading in USD is prohibited here. So it's interesting that people here look to the crypto space.
So what we're doing now is trying to give them some solutions, because there aren't a lot of tools, so that's why I started this new project, which is to be able to give them the infrastructure and the tools to allow governments to operate with encrypted infrastructure.
Of course, there are still many areas to be improved. For example, they said that there is a problem with our fees. The only thing that's really useful right now is merged transactions. So there needs to be a certain amount of money, which is why we focus on government and business modules. What the government wants is to be able to have tokens (token) for transactions, so there are still many things that are difficult to achieve in the field of encryption infrastructure. It is impossible to buy coffee every day through Bitcoin transactions because the cost is too high, but it may be possible through Lightning network implementation. But I'm not very good at the technical aspects of this area, so there is still a lot to do. But now there are a lot of people interested in it, and I think we will get there, and I think the same communication that happens between skype and local telecoms will happen in encryption.
For example, we're talking to some government banks right now, and they want to use some encryption infrastructure. I think it's really exciting and there's certainly a lot that needs to be done. As you said, before, the issue of nationalism has been rising in the geopolitical issues of the world. It can solve a lot of problems, so it's very, very exciting, but I also know we have a lot of work to do, a lot of things to do. It can only be said that it has just begun.
Yama: Building infrastructure has never been easy. What is the main stablecoin used there? Is it USDT or DAi?
Beto: USDC is rarely used, mainly USDT and DAI.
Yama: Because in China, a lot of people are talking about the collapse of USDT or a lot of conspiracy theories. I also want to know Beto, what do you think of USDT?
Beto: I think USDT has shown something about stability not only about collateral, it is about usage, that is, liquidity, which is a key point, so the price is not only reflected in the collateral of the stable currency , including whether it works for you.
I think that's what you mean by single point of trust, they tend to just want some resolution. Well if USDT is a solution, they use it, but they don't hold it long term. This is what I always tell people, if you want to invest in Bitcoin, do it long term, never short term.
But if you want to pay with it, you can use USDT, USDC, or any other stablecoin. There are many solutions, you can use them, enter the encryption field, in a certain way, there are many possibilities.
Yama: I think Adam also mentioned on Twitter that the last issue with Tether last year was frozen bank assets, and Tether raised $1 billion from investors in 10 days. Very powerful move. I also agree with this, I have worked with the Tether team and their team is professional and efficient. Adam, Beto, I know you both agree on the importance of the Bitcoin payments use case as Bitcoin is a purely peer-to-peer electronic cash system that allows online payments to be sent directly from one party to another without going through a financial institution. Would you like to share more in-depth views with our audience on this?
Adam: Well, Bitcoin transaction fees are an interesting problem, and people are starting to notice it more and more because fees are going up.
But I think the prevailing thinking is that fees are mostly driven by traders. Traders are price sensitive, and they already pay a lot in transaction fees. If they need to pay 10 cents, they don't care, maybe they will pay $2 to secure the transaction because they want the transaction to go fast, they want the price to fluctuate.
It's like a flea market with lots of trading boats. They're not that smart, so they're like a house full of turkeys. I don't know if you've heard of this phenomenon, but someone says Boom, and all the turkeys make a lot of noise together. As soon as a trade comes in, he starts paying, then the next trader pays 20, 30, 40, 50, and within a short period of time, the fees become super high. And many of them are paid automatically by software. This can cause problems for someone who actually needs to create a transaction. It's ironic because traders think Bitcoin is great, the use cases for Bitcoin are great, censorship-resistant licensing is interesting, etc.
So they want to buy some, and then push up the fees, make the Bitcoin system more difficult to use, and affect the value of the use case. I don't think the solution is simple, but we have many layers of building, many layers of communication state.
Bitcoin now has more layers than before, a lot of people transact freely on the Lightning Network, it's easier to use, there are more wallets, it's now more reliable, cheaper, and faster. Lightning transactions are completed in fractions of a second, even regardless of cost. Bitcoin transactions are virtually irreversible.
The Lightning Network is better to use, because everything in Layer 2 has been processed. So if it's possible to do better, then Bitcoin has already done it, so the Lightning Network is better interactive and secure, and definitely faster, cheaper, and more scalable for smaller payments.
Then what Blockstream does for traders is on a different layer, first implemented on Liquid. Makes transactions faster and more stealthy, you won't see the risk of transactions on alerts. It can support multiple types of assets at the same time, and the transaction costs are lower.
So even if it is a confidential transaction, Liquid's transaction can enter the final state within 2 minutes, and the transaction fee is 1-2 cents. Considering that Bitcoin transaction fees are becoming increasingly expensive, I think this is a healthy competition between Bitcoin's various application layers and the main chain. If people make the best tradeoffs, they will only make the main chain more scalable and support more use cases.
So I think that's probably the way things are going, initially, I was hoping that in the future we'd see more layers optimizing different things.
Wang Chun: May I ask a question? In my opinion, the fee is a direct measure of network security. In order to maintain the security of the Bitcoin network and avoid problems such as double spending and block reorganization, it is necessary to pay a certain transaction fee to motivate miners to confirm transactions and promote the decentralization of the network. . If transaction fees are low, miners may choose to risk a rollback (roll kack), increasing the risk of the network.
Adam: That's a real problem, especially in some of the lower returns going forward. We should have a serious talk. Especially when there is an exchange hack, the value lost is very large. They may ask whether the Bitcoin network can be rolled back, of course not, and it did not happen in the end. This is not a good thing for the Bitcoin network. We know that Bitcoin should be final).
Rollback will cause a very chaotic state, and there are possible risks such as double spending. We don't want this to happen. I think that there may be some technical way for miners to refuse the incentive to rollback, so individual miners will expect the block height to continue to increase.
Yes, you talked about something a minute ago, which is less politics, more global consensus, and I think that's an interesting quote from a guy called David Clark in the history of Internet Protocol. His point: we reject kings, presidents, and voting, we believe in general consensus and code that works.
In my opinion, Bitcoin folk drama is relearning the same story. I think bitcoin will help change geopolitical issues and reduce the need for governments. In the future, government will still exist in some form, but it will be small and neglected. I think over time, the influence and importance of the government will gradually decrease. Because people have more direct control over affairs, they can travel more easily and communicate more easily. Individuals have more sovereignty and governments have less importance.
Yama: Beto, what do you think?
Beto: Yeah, I think it's interesting that Bitcoin brings a whole new way of life for people who rely on cash. We suffer from many kinds of economic experiments, Bitcoin is one of them, I say "suffer" because you have to figure out how to deal with it, you need to learn a lot about how to use it, as long as there are more The tools are easier for people to use, and there are more tools that are easier to use today than there were five years ago.
But then again, for example, there are still many problems to be solved with the Lightning Network, so I am very interested to see when and how people can use this network.
I think Bitcoin needs to be slower in a lot of things because it needs to be more secure. And other blockchain networks can be faster to show what they can do, and then Bitcoin can use them. I think that's why so many tokens are in the air, not only because of some transactions, but also because of different use cases.
By owning bitcoin you can say that you really own it, it's not in a bank account, it's not in someone's health custody. I think the main thing that people move from the cash world into the bitcoin world or the token world is that here, people themselves can be the throne bank and have everything they want to transact. The world is heading in this direction, and it will take a while to build the basic tools, but I think 50 years will be around. I think we're all headed in that direction, it just takes some time.
Yama: Thank you Beto. We all know that Su Zhu is an experienced trader. Do you have anything to say about the high transaction fees that you talked about before? Does the high transaction fee have any impact on your transaction?
Su: Trading fees on exchanges, you pay three or four basis points, just to make a trade, if you trade down or move a bounce combination, you need to pay for future trades, and I think we do some trade payments , to move by 200 cents. So I think in a way, that's not right, liquidity should be seen. I mean, I think the main problem is that exchanges don't support it, it's just a process, and I think that's a positive.
But my concern is whether this crowds out real users, like someone who just wants to learn what Bitcoin is, and then they leave. They're left with 20% on transaction fees, but it's not a good experience, like if we were in the local market. And I hope our solution is that we become traders, regardless of price.
Looking forward to the development of Bitcoin/Blockchain in the next 5-10 years
Yama: Thank you for the wonderful exchange~ Now we enter the final discussion tonight. In China, our government has been promoting the concept of new infrastructure. This year, the government officially included blockchain, 5G, Internet of Things, artificial intelligence, big data, etc. into the new infrastructure. In your opinion, what will bitcoin or blockchain look like in the next 5 or 10 years?
Adam: How will Bitcoin and blockchain develop in the next 5 to 10 years?
There are already many innovative projects under development. Technology changes quickly, and both the adoption and use cases of new technologies are growing rapidly.
In the past, if someone asked when the price of bitcoin will go up to $100, is it possible for more than 10,000 people to use it, people will think you are crazy, or ask, do you think banks will participate in industry conferences or run blockchain experiments room etc. All of these things are happening, happening fast, so we're expecting more technically. Improvements and changes on the technical side are ongoing.
For example, people may not be very familiar with it, a new smart contract language in Bitcoin, called Simplicity, was first proposed in 2012, we hired Dr. Russell O'Connor, a 4 years working here people. As one of the ways to better ensure the security and transactional behavior of bitcoin and liquid, we released a simple integration fork of bitcoin and a fork of element, the open source platform on which liquid is built, and we hope Simplicity will be available first on Liquid later this year, and later on Bitcoin.
Signatures and powerful algorithm equations appeared in 2015, and maybe this year, maybe next year, the review and activation status can be completed faster. So the next thing you can see is that in the next two to four years, Bitcoin will enter a pyramid shape. Simple and private transactions also come into Bitcoin as it is a general scaling mechanism.
For example, if bitcoin were simple today, you wouldn't need a personal signature or inheritance book for the software or something, you could make it simple to use, and do it in a compact and efficient way that scales well , unless you build more things and move faster, that's cybersecurity money.
Finally experience rapid change, possibly in a positive way. I think actually a quote first because he did things like he wanted to finish the scripts so they didn't need to change them specifically didn't actually solve the problem because the scripts made some simplifications and some of them ended up due to Disabled due to security breaches. But I think the idea is great, but if bitcoin can scale itself, then we can start new work now, try different methods, there will be more innovation, maybe more Lay2 applications, or more use Way. I think Plan B's prediction for the next four years is very interesting, his prediction of Bitcoin price to 100,000 or 300,000, which is obviously good if we see a few of these. Of course we also saw people like Paul Tudor Jones come along and buy $100 million in Bitcoin.
People understand people from the investment world, because people from all over the world speak their language, understand their interests, and the same economic conditions are not good right now. So what about printing money? It's hard for people to know what to invest in, they can invest in the stock market, bonds or real estate, but if people are going to work farther away, maybe because housing prices in big cities will be too high, interest rates are zero or negative. Government over money is crazy. Let me know what to invest in, and it would be very interesting for bitcoin and gold too. Like the Paul Tudor Jones of traditional investing, there's a lot to like in many financial and technical aspects.
Yama: Thank you Adam, Beto, does Beto, who lives in Argentina, have more thoughts and opinions to share with us?
Beto: I think what China is currently doing in terms of how the blockchain can be integrated with other technologies and how the blockchain can be applied is very interesting. It's clear that most governments around the world are worried about Bitcoin and other cryptocurrencies. So they strictly separate something that cannot be separated. So it will be interesting to see how it will revolutionize in the future.
For example, there are many use cases for cross-border payment, because this is indeed something that can be solved with Bitcoin, and it is also the most important use case for the rise of the payment industry. I think at the moment China is thinking that it can use blockchain technology to facilitate cross-border payments, but they are actually not sure how to do it, how to establish connections between different blockchains.
So I think being able to use that to connect to Latin American countries is a starting point. We want to be able to get money from elsewhere, which allows countries to invest in new infrastructure in other countries and be able to recoup the money, rather than being embargoed by some middle country.
What I see is that we will increase the proportion in many countries (such as Argentina) in Bitcoin and blockchain infrastructure, and I hope, and I am working on it, to create a solution that allows people to Live better, have better tools and better ways to protect their money and also be able to trade without state involvement. It's really interesting, but it will take some time to see it implemented, and it will take some time for governments to understand how this will help them provide a better life for their citizens.
Yama: Thank you Beto, Wang Chun, what do you think?
Chun Wang: I think Adam has said a lot about this issue in detail. Bitcoin is the only fully decentralized global currency that belongs to all mankind.
Yama: Thanks Chun, what about Su?
