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Ripple’s CTO claims Bitcoin is doomed to fail its ‘most important mission’

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With a market capitalization of over $900 billion, Bitcoin, the world’s largest cryptocurrency, has secured acceptance among several mainstream investors and companies. However, it would seem that Ripple CTO David Schwartz doesn’t share the same degree of optimism.

During a recent interview with Techradar Pro, Schwartz suggested that Bitcoin is “doomed” to fail its most important mission. According to the Ripple exec, over the past decade, the cryptocurrency has failed “to deliver a system whereby people can transact freely with one another, without the involvement of any intermediary.”

In fact, Schwartz also pointed to Bitcoin’s core design to explain why he thinks this is the case, with the exec stating,

“The design of the Proof-of-Work (PoW) consensus mechanism at the heart of the Bitcoin blockchain is such that true decentralization and disintermediation was never a possibility.”

According to Schwartz, a cryptocurrency should be a one-sided market, with users wanting a store of value and a means of exchange. Bitcoin, however, turned it into a “two-sided market,” he said.

In the aforementioned interview, the exec went on to claim that identifying these problems with PoW was key to the work done by Schwartz and former Ripple executive Jed McCaleb back in 2011.

“At the time, the philosophy for most people was that PoW was Bitcoin’s secret sauce, but the very first cracks in the foundation were beginning to show.”

XRPL, ergo, was introduced after basing it on the idea of a distributed agreement algorithm, one which is intended to perform the same core functions, but without the downsides of PoW or PoS. The consensus algorithm is just to set the orderly transactions in place without any cryptocurrency rewards, making the process cooperative as opposed to competitive.

Having said that, Schwartz wasn’t shy to point out the main downfall in his system.

“The main issue with this approach is that the quality of network participants isn’t always as high. With no cryptocurrency rewards available, the network attracts a less reliable pool of participants who are more likely to drop off without any notice.”

To conclude, Ripple’s CTO presented his views on cryptocurrencies and regulations in place,

“In the years to come, cryptocurrency projects will preserve their roots in decentralization and disintermediation by providing a way for users to adhere to local regulation, but without mandating compliance.”


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/ripples-cto-claims-bitcoin-is-doomed-to-fail-its-most-important-mission

Blockchain

Crypto has arrived.

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If there was any doubt in your mind, Coinbase listing on the NASDAQ with a US$85 billion valuation should put them firmly to bed.

At around 3am AEST this morning (after some inexplicable delays), shares in US cryptocurrency behemoth Coinbase started trading on the New York Stock Exchange. The event was, in good crypto fashion, chaotic and highly volatile. After kicking things off at a price of US$381 per share, the market briefly pushed the price up to US$424 before sanity took hold and it floated down to a comparatively measured US$328, giving Coinbase a market cap of slightly more than US$85 billion.

You gotta hand it to Coinbase: they saw a good thing coming. When they filed their listing paperwork with the SEC in December last year, bitcoin was only getting started on this outrageous bull run. But that was just the next step in a process that had begun at least half-a-year earlier, shortly after Black Thursday, when the prospect of a US$60,000 bitcoin seemed laughable.

Yet here we are. Last time Coinbase went for funding, back in October 2018, the company was valued at US$8 billion. Now, a mere 18 months later, it’s worth almost 11 times that amount, making it the second biggest tech listing since Facebook. At this valuation, Coinbase is already included in the top 100 biggest companies in America and it’s worth more than any other financial exchange on Earth.

And I guess that’s where crypto is now? LOL WTF OK.

First they ignore you

Three weeks ago, Coinbase released its business results from the first quarter of 2021 and to say that they were mind-blowing is to put it exceedingly gently.

Coinbase reported a user base of 56 million, a figure that makes them four times larger than notorious share-trading platform Robinhood and puts them on par with the biggest banks in America. That number includes 13 million users who’ve signed up since January alone.

During the first three months of the year, Coinbase took in US$1.8 billion in revenue. In 2020 – all of 2020 – they made US$1.14 billion. The assets on their platform now total over US$223 billion, an increase of almost 250% this quarter.

To be clear, these are serious numbers that speak to a very serious business. You thought crypto was just memes, shitcoins and anonymous Twitter avatars yelling at each other online? Nah, we’re coming for the banks next.

The bottom line

It may seem strange that I’m spending an entire newsletter telling you how amazing one of our competitors is. And, don’t get me wrong, Coinbase has plenty of issues from a sketchy work culture to persistent scaling issues and absolutely outrageous fees.

But this is the first time that a major crypto exchange has actually set out the numbers like that and, put simply, it’s a stunning validation of everything we’ve held on for and believed all these long and tumultuous years. The masses are lining up. The institutions too. This isn’t some niche technology anymore: crypto is mainstream. And hell, if that’s what Coinbase is doing, what does it say about a company like Binance which turns over ten times the volume?

Coinbase’s CEO, Brian Armstrong, admitted that the numbers they posted are unsustainable. The crypto market is way too volatile and we all know what happens when the good times end. And even at its current valuation, Coinbase would need to be doing more business than every other financial exchange in the world.

They could get there. They probably won’t. The hype will almost certainly crash and evaporate at some point and that could well drag bitcoin and the entire crypto market down with it. But for now let’s take a moment to recognise an epochal moment in crypto’s journey.

Just don’t immediately put your life savings into $COIN, OK?

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://blog.coinjar.com/crypto-has-arrived/

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Blockchain

Raise a PINT to Polkadot’s new index token: Six top projects sign up

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The source code for the upcoming Polkadot Index Network Token, or PINT, has been made public, with half a dozen projects putting their hand up to be included in the index.

The project has outlined a four-phase roadmap that it expects to culminate in mainnet launch within three months.

According to an April 14 announcement, six of Polkadot’s leading projects have already given “soft commitments” for inclusion in the index, including Acala Network, Equilibrium, HydraDX, Litentry, Moonbeam, and Plasm.

The PINT token seeks to offer investors balanced exposure to the emerging Polkadot ecosystem, hedging the volatility of individual projects against the broader performance of the sector. PINT will be available for trade on decentralized exchanges in future, and can be directly minted using DOT.

PINT’s developers are hoping to see the index adopted as a “treasury reserve asset” across the Polkadot ecosystem, offering an alternative to exclusively holding native tokens as treasury reserve without the complexities associated with active treasury management.

A council will be tasked with governing the token’s index, and a ‘Constituent Committee’ formed with representatives from each project included in the index. The six index hopefuls have committed to joining it.

The PINT Council will govern all aspects of the index and oversee a native treasury that is partially financed by collecting fees from staked assets contained within the index. However the Constituent Committee will have veto powers on the Council’s decisions.

The index is a collaborative effort between staking service provider, Stateless Money, and blockchain development team ChainSafe. Stateless Money will coordinate the project, while ChainSafe will serve as its primary development partner. Cross-chain DeFi DAO, StakerDAO, also voted in favor of PINT’s creation using treasury funds, and will receive a share of the fees generated by the index.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/raise-a-pint-to-polkadot-s-new-index-token-six-top-projects-sign-up

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Watch out as r/Wallstreetbets finally allows crypto threads… within limits

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The moderators of subreddit r/wallstreetbets have announced they will allow crypto discussion in the subreddit from today.

The retail trading group, famous for pumping traditional stocks such as Gamestop (GME) and scaring hedge fund managers out of their shorts — which is soon to be a major movie — will limit discussion to three cryptocurrencies, BTC, ETH, and DOGE, in a single daily thread. A post this morning stated:

“We’ve decided to allow for discussion about only BTC, ETH, and DOGE only. Inside of a daily Crypto discussion thread as to not burden everyone with crypto spam. All rules will still apply outside of the thread but for now please keep it in the daily thread only as we gauge if this is something that is right for our sub.”

Subreddit moderator “bawse1” noted that for years they’d “tried to delay discussion about crypto on the sub for many reasons,” with the main concern being that r/wallstreetbets didn’t want crypto discussion to detract from the group’s core focus on the stock market. However, despite some members “hating crypto”, the moderator noted that the subreddit aims make all members welcome amid the growing appetite for crypto in the past year:

“I’ve known at some point that r/wallstreetbets will have to find a place for it. As much as some of us hate it, there are just as many that love it and the way I’ve always tried to shape the sub is to never gatekeep, allow everyone to feel welcome, and always be able to adapt. I don’t see the point in delaying the inevitable anymore as crypto is here to stay.”

The move may partly be a response to the crypto version of WSB “r/SatoshiStreetBets”, which has acquired 384,000 members since it started in February last year. Then again, that pales into insignificance against the 9.8 million degens that r/wallstreetbets has attracted since 2012, many joining in the light of the Gamestop saga earlier this year.

Around the time WSB collectively pumped GME, data from Tradingview shows the price went from roughly $60 on Jan. 22, to around $340 on Jan. 28, which resulted in trading platform Robinhood halting trades on the stock to allegedly protect the positions of the hedge funds who were shorting the market.

The saga of how the little guys took on the hedge funds and won is set to hit screens, after Metro-Goldwyn-Mayer studios secured the rights to a book proposal depicting the “short squeeze” by author Ben Mezrich, who also wrote “The Social Network” a book and film about Mark Zuckerberg and the rise of Facebook.

Mezrich is also behind “Bitcoin Billionaires” about Cameron and Tyler Winklevoss which is also being turned into a movie after Stampede Ventures partnered with the twins in June 2020 to produce it.

Around the time of the pump there was talk the group may throw its weight behind Dogecoin, and if it did, the highly coveted $1 price point may be a possibility.

Dogecoin rallied around 80% to hit its all-time peak of $0.14 in the past 24 hours and now sits as the 11th largest crypto by market cap according to data from Coingecko. Despite its “meme coin” status and history of volatility the coin is up 6196% in the past 12 months.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/watch-out-as-r-wallstreetbets-finally-allows-crypto-threads-within-limits

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