High schools are adapting the teaching of Bitcoin and cryptocurrency’s. This generation will grow up never needing to step in to a bank and this generation and the millennial will be the generation that will move the price a Bitcoin higher as they invest in cryptocurrency’s for there retirement.
Introduction to Bitcoin
The Lighting network will allow owners of Bitcoin to be able to make payments through a layer two of transaction allowing high volume and lower fees then current transactions.
The problems below are preventing Bitcoin to scale and the lighting network coming online in 2018 will resolve the issues below
Problem 1: Scalability : Limited amount of tranactions can process per sec
Problem 2: Time delay: Blocks are created every ten minutes to verify transactions
Problem 3: Fees : High fees for transferring Bitcoins
Abstracting Complexity for new users.
Jameson Lopp of Casa @Casahodl talks about the furture of Bitcoin technology and the 50 forks ahead .
First I have to say Bitcoin it attracting the best minds in tech and tech firms and instantiation are worried.
There will be 50 Bitcoin forks predicted this year and you must own Bitcoin and also have the private keys to get a piece of the pie. More info on that below. When Bitcoin forks people that own Bitcoin will get free tokens in that crypto that is created basically free money.
Below changes to Bitcoin is coming to be-able to scale Bitcoin to the main stream.
lighting network: will be coming online this year allowing 3rd party to open a tunnel to process a transaction offline from the block chain allowing cheap transnational fee’s more on this below.
Schnorr signature: The Signature Algorithm to Increase Bitcoin’s Scale and Privacy.
Bulletproofs: This will allow Bitcoin to have better privacy confidential transactions.
Mimblewimble: In the confidential transactions system, all the values are homomorphically encrypted with random strings of numbers called “blinding factors.”. This means that the values cannot be seen directly
How it Works
The Lightning Network is dependent upon the underlying technology of the blockchain. By using real Bitcoin/blockchain transactions and using its native smart-contract scripting language, it is possible to create a secure network of participants which are able to transact at high volume and high speed.
Bidirectional Payment Channels. Two participants create a ledger entry on the blockchain which requires both participants to sign off on any spending of funds. Both parties create transactions which refund the ledger entry to their individual allocation, but do not broadcast them to the blockchain. They can update their individual allocations for the ledger entry by creating many transactions spending from the current ledger entry output. Only the most recent version is valid, which is enforced by blockchain-parsable smart-contract scripting. This entry can be closed out at any time by either party without any trust or custodianship by broadcasting the most recent version to the blockchain.
Lightning Network. By creating a network of these two-party ledger entries, it is possible to find a path across the network similar to routing packets on the internet. The nodes along the path are not trusted, as the payment is enforced using a script which enforces the atomicity (either the entire payment succeeds or fails) via decrementing time-locks.
Blockchain as Arbiter. As a result, it is possible to conduct transactions off-blockchain without limitations. Transactions can be made off-chain with confidence of on-blockchain enforceability. This is similar to how one makes many legal contracts with others, but one does not go to court every time a contract is made. By making the transactions and scripts parsable, the smart-contract can be enforced on-blockchain. Only in the event of non-cooperation is the court involved – but with the blockchain, the result is deterministic.
Do you ever wonder why the prices keep increasing when you go to the grocery store, gas station or even to fill a bottle of water. Its not that everything is getting more expensive its that the currency your using is getting weaker. As long as governments keep borrowing money and banks keep printing your currency it will decrease in value. The worst tax on human society is inflation just see Venezuela. Everyone works hard for there money to have it stolen by inflation it should be a crime. Just leaving your money in the banks you lose 2% a year to inflation plus the fees they charge to hold your money on top of that they get bailed out by the government with our tax money. Bitcoin solve this issue with no middleman only 21 million coins will be minted because the lack of supply and the trust with the community authenticating every transaction that is why the price will keep rising. It only going down because the bankers on wall-street see this a threat to there business model and are shorting Bitcoin and buying it on its lows pretty smart. There is a lots of benefits to Bitcoin one is that converting Dollars to Bitcoin and transferring overseas then from Bitcoin to Euros instant and cheap 365/24/7. I will link another article below if your interested. The key to all society’s is to keep us in the chains of debit look at the word ‘mortgage’ literally means ‘death pledge’. This is what governments and banks want and bitcoin frees us from banks and funding wars for governments in country’s we will never go to. In closing I agree there might be other currency’s maybe even better, but Bitcoin is the first and the only one we know that has no multiplication in the code. I can not say that for those that follow and also Bitcoin is the main exchange for all other currency’s.
See george washington Blog on average life expectancy for fiat Currency
1.Bypassing Monetary Controls.
Bitcoin is exponentially expanding in Latin america allowing them to buy food from the US like amazon or even wall-mart. Venezuela government restricts money in and out of the country via the banks, and Bitcoin allows the people to by pass this restrictions by the government.
2.Bypassing tariffs in Brazil
a) Avoid paying a Import Tariff tax of 60% when purchasing from the US.
b) Avoid Paying a 27.5% foreign exchange tax when bring money in to Brazil.
c) Brazilians that travel abroad are paying 6.38% tax with every purchase.
3.Eliminating Red Tape
Starting a new business in Brazil takes 14 times longer then the US and moving this to the blockchain could speed up this process. Honduras is still creating land titles on paper and the blockchain could help speed up and authenticate transaction.
With Venezuela having the highest inflation rate in the world you can go to dinner and by the time your done your dinner could be ten more then the price on the menu. This is proof of concept that Bitcoin will over come the corruption of governments world wide fiat currency of the banks and the IMF. The socialist government of Venezuela would rather see there own people die and starve to death then freedom and independence of there people. The poor people of Venezuela risk going to jail for just mining Bitcoin and providing for there family. Its amazing the Venezuela government is targeting Bitcoin miners because it’s threatening there existence . Venezuela government are hunting down miners by how much power they are using, but some miners are using government computers and would be untraceable.Venezuela’s would rather have the volatility of Bitcoin then the worthless paper of the bolivar is printed on.
NYSE Chairman Jeff Sprecher understands that Millennials trust bitcoin over government fiat currency, and has also invested in technology and sees the writing on the wall. Please see 1/3 of millennials will invest in bitcoin in 2018
The largest generation in history larger then the baby boomers will be investing in bitcoin in 2018, and 92% of Millennials don’t trust banks. With housing increasing , no return on there savings and the burden of student debit they are looking to bitcoin to invest long term for there store of value. With the support of Millennials and the failing of fiat currency around the world because life spam of any currency is about 27 years. With all said the US dollars has a negativity association out side the US that everything is priced in dollars. Because of this Bitcoin price will raise it’s just a mater of time. Please see Thomas Lee predicts Bitcoin will reach 10 Million dollars a coin
See george washington Blog on average life expectancy for fiat Currency
This a good example what the world is doing to create Bitcoin and secure the network . People think this will be the one world currency that the bible predicts allowing any age, person or country to have an account. People are already inserting NFC chips in there hand and paying with bitcoin. If this is true less then one percent of the world will be able to have 1 bitcoin. Each bitcoin (BTC) is divisible to the 8th decimal place, so each BTC can be split into 100,000,000 units. Each unit of bitcoin, or 0.00000001 bitcoin, is called a satoshi. A Satoshi is the smallest unit of Bitcoin.
Satoshi Nakamoto created Bitcoin for the people to be able to do a peer to peer transaction without a third party in essence able to have privacy during the transaction. This will allow the owners of bitoin to monetize there own info and not the banks. No one knows who Satoshi Nakamoto is it could be a single person or a group. Nakamoto published the bitcoin white paper in 2008 and Nakamoto release the currency in 2009 and in 2011 he disappeared. None of the collaborators that worked with Nakamoto never met him. Currently Satoshi Nakamoto owns about 1 million Bitcoin totaling a value of 5 Billion dollars, but to this day not even one coin has been moved from the blockchain. This leads people to believe he is not alive. He unleashed the best gift anyone can give its freedom form governments and institution. let us enjoy this freedom and know that no one can take it away form us unless they shut down the internet. This allows us to do commerce in private, and one to one just like in cash. This takes away the power from banks and governments to fund there wars for country’s we will never travel to. Please read the Bitcoin white paper