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Bitcoin Maximalists: Leading towards a hazardous path.

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bitcoin maximalists believe that bitcoin is the only coin worth spending time, effort and worth investing in and everything else is a shitcoin.

Talking about bitcoin maximalism, we really to an extent talking about tribalism. We have to question as a community that is this the kind of stuff and ideologies that we want for the money of the future? Basically, Bitcoin maximalists believe that bitcoin is the best cryptocurrency in the world. The difference really comes in versus if you think that bitcoin is the best cryptocurrency in the world and the rest of the crypto economy can add a lot of value and innovation and there doesn’t have to be one coin to rule them all. Then there are the bitcoin maximalists who believe that we have to have one coin to rule them all and bitcoin will be the only coin worth spending time and effort on and its the only one worth investing in and everything else is a shitcoin.

The bitcoin maximalists will argue that because of Metcalfe’s law essentially the more people who use the network, the more valuable it is. They believe that altcoins are just taking away the value from the bitcoin network not that they are adding anything to the wider crypto economy because there is no crypto economy, its just about bitcoin. Now as the process of making cryptocurrencies mainstream is a slow one, they argue that companies would always choose the older and more stable networks rather than the new ones.

 

The Contradiction to bitcoin maximalists:

There are a lot of companies who are willing to be a bit experimental and testing out pilots or they see use cases on other blockchains than bitcoin doesn’t offer yet. Just because its the older and more stable one doesn’t necessarily mean that all companies are going to choose that for their use cases and its not a very good argument when it comes to defending bitcoin. A lot of companies are choosing to work with Ethereum, EOS and others so its not all being monopolized by bitcoin. Even if the bitcoin maximalists would like it all be monopolized by bitcoin, the reality is that the market is simple choosing something different. That’s because the reality is that the crypto markets demand more than what bitcoin can provide. Consumers demand more from cryptocurrency and the related technologies which is more than bitcoin was ever designed to provide and to ignore all of that is unnecessarily myopic.

Charlie Lee recently came out on twitter saying that some self proclaimed bitcoin maximalists are actually bitcoin extremists. They think that all other coins are scams and will go to zero. Saying that there is room for altcoins to exist and even do well. That’s a view that a lot of people in the cryptocurrency community get behind. There is plenty of room for innovation for different communities to happen, for different ideas and use cases that bitcoin simple cannot provide. Arguing the opposite is basically an extremist position and unfortunately we do have a certain group of voices within the cryptocurrency community who are very much bitcoin extremists.

One of the big things we really need to really face up-to here is that the bitcoin maximalists idea has largely been hijacked by bitcoin extremists. People representing the community do have ideologies but to try and make this association that bitcoin is this; just doesn’t work. Its not useful in terms of trying to drive mass adoption.

We need to come together and believe in the idea of decentralized finance and what that can offer. Putting ideologies on top of that is recreating the worst of our society in a lot of ways. Bitcoin has got some really big drawbacks that have been really getting a lot of attention. Proof of Work has some real issues, Proof of Stake is being explored by a lot of different cryptocurrency projects. As bitcoin continues to grow the free market will either adapt to become very energy efficient or it is going to continue to be a thorn in the side of bitcoin.

Then we have the scaling issues and its good to see the lightning network coming around but the reality is that right now bitcoin doesn’t scale very well. We can also look at lack of rich functionality in terms of things like privacy features which we see being developed in other cryptocurrencies.

A lot of good things in the Bitcoin Network are going on too. Bitcoin is sound money, it remains permission less, it remains censorship resistant, companies are putting satellites in space to beam the bitcoin blockchain around the globe, lighting is getting better all the time, atomic swaps continue to gain relevance and we see decentralized exchanges moving forward but this whole one coin to rule them all negative is not very compelling when it comes down to it.

The whole idea behind the bitcoin protocol was that its driven by verifiable code, not an ideology. We are trying to decentralize the systems of power. Although bitcoin is awesome and will remain and continue to grow massively in future but a lot of other crypto technology will also be very important and every project in the cryptocurrency space is contributing in some way. The test of time will of course be the real test for bitcoin.

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Alert: CME Bitcoin Futures Experiencing Record Breaking Volumes

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These days saw the highest and rapid increase ever for Bitcoin futures on the Chicago Mercantile Exchange as the amount exceeded 18,000. Institutional investors are paying attention to this as the bitcoin future contracts get snapped up at an ever-increasing rate.

 

Record of BTC Contract Size on CME:

As per the stats of CME they were 18,338 on Wednesday, which is the highest figure ever recorded till now. This is equivalent to 91,690 Bitcoins or roughly $365 million at today’s prices.

cme-futures-trading-volume

Upcoming contracts enable explorers to bet on the prices rather than to purchase the physical assets. So these figures might be a little misleading.

 

When the new product which offers the physically settled contracts hit the market, they will be paying out in BTC which will drive tremendous momentum for crypto markets. Over the past year or so the expectation of a crypto Exchange Traded Fund (ETF) being launched has been telecasted and dominated the news. The year 2018, has been the year of regulation and cooling off which was only to be expected after the previous year of rampant FOMO and parabolic market action.

 

This year 2019, is expected to be different as many industry experts predict the launch of at least one institutional investment vehicle.

 

As per the Block European exchange giant, Eurex is preparing to launch crypto and bitcoin futures so the list of institutional offerings is increasing rapidly. The cognate exchange is operated by Germany’s Deutsche Börse, which will be offering Bitcoin, Ethereum and XRP imminently according to the report.

 

Exchange traded funds are the future:

In addition to these future products, there is already one type of Exchange Traded Funds that are actually traded through an ETN (exchange-traded note) which allows investors to get direct exposure to Bitcoin prices. The Grayscale Bitcoin Trust (GBTC) crosses the technicalities of buying and storing Bitcoin but still allows investors to get into the action by buying shares that trade at around a thousandth of the price of BTC.

 

GBTC has been highly popular with over $800 million which is already invested in the Bitcoin fund.

 

Furthermore, Bitcoin is the most popular. The fund eliminates the volatility of buying and owning Bitcoin directly which is something that institutions want.

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Elon Musk: Cryptocurrency is the future, Paper Currency going to end.

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CEO of Tesla, Elon Musk, stated that the Day is not far when the paper currency will fade away and shall be replaced by the Bitcoin.

Enthusiastic towards cryptocurrency also the CEO of Tesla, Elon Musk, stated that the Day is not far when the paper currency will fade away and shall be replaced by the Bitcoin. Which clearly means Musk is in favor of the decentralized currency ( also known as cryptocurrency).

 

In one of the episodes of ‘On The Road To Full Autonomy With Elon Musk, which is hosted by Tasha Keeney, the CEO spoke and discussed the developments that Tesla shall undergo and also spoke about the cryptocurrency with regard the future of technology and finance.

 

When Elon Musk was asked regarding Jack Dorsey’s prediction, which was that the Internet shall be witnessing Bitcoin as its native currency soon, Elon Musk answered it and found it interesting.

 

He further said that the idea and also the structure of the Bitcoin is great and it seems like there is some advantage to Ethereum. Elon Musk is not sure whether it will be good for Tesla resources to get into cryptocurrency.

 

Elon Musk also said that Bitcoin and Ethereum scammers were so rampant on Twitter, he decided to join in and He said at one point that he wants to buy some Bitcoin. Then his account got suspended cause obviously there was some automatic rule, he then ended the conversation by saying that he was just joking.

 

A campaign was started by Twitter which deleted several bogus accounts for “coordinated manipulation,” and promotion of cryptocurrency scams, Elon Musk appreciated the website’s efforts.

 

Elon Musk added that the disadvantage of cryptocurrency is that the nature of production is energy intensive as regards to the mining process.

 

Keeney referenced to the terrible financial condition in Africa, where the restrictions on the currency stop the citizens from converting their currencies and forcing them to go through the US dollar. To which Musk replied that cryptocurrency is a far better way to transfer money or value rather than pieces of paper. Paper money is going away.

 

Even after Elon Musk’s positive statement on cryptocurrencies, his recognition for the structure and concept of Bitcoin and Ethereum and his confirmation that paper money will be replaced by the decentralized currency, the Tesla CEO made it clear that his company will not be selling Bitcoins.

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Tim Draper: Bitcoin Mass Adoption till 2021

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Tim Draper said in an interview with the FOX Business on 18th Day of February 2019 that the world will soon start buying coffee by using Bitcoin.

Bitcoin is considered as digital gold or e-gold which has achieved dominance in the field of cryptocurrency. Tim Draper, who is the inventor of the Billionaire Bitcoin, predicted the rapid increase in the growth of the Bitcoin or cryptocurrency in the world and said in an interview with the FOX Business on 18th Day of February 2019 that the world will soon start buying coffee by using Bitcoin. According to his prediction, the world is just 2 years away from when everybody shall start to use Bitcoin.

 

By 2023, Baristas would be laughing at people who shall make the payment of their purchase by using the currency other than the Bitcoin, Tim Draper added.

 

Even after having a large number of Bitcoins, Tim Draper has no plan to trade or sell any of his Bitcoin.

Tim Draper previously claimed and predicted that by 2022, the net value of Bitcoin will reach to $250,000 per coin. The prediction is also said to be the highest prediction coming from the industry of cryptocurrency. But Draper is still not clear on how this rapid growth will take place but he is enough confidence that there will be massive growth in cryptocurrency.

 

Recently the CEO of Twitter, Jack Dorsey also publicized Bitcoin.

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