iBankCoin
CAPS LOCK IS CRUISE CONTROL FOR AWESOME
Joined May 7, 2012
71 Blog Posts

Bitcoin D Day approaches

Bitcoin is facing it’s own Brexit. Here’s what you need to know.

Similar to US Government, Bitcoin has three branches governing it: Developers (Legislative), Miners (Executive) and Users (Judicial).

Legislative power: The Developers create new code (Laws).

Executive power: Miners run the version of Bitcoin that is in the best interest of Miners. They can work with any party of Developers they choose, even if those Developers are not status quo.

Judicial power: Users choose to buy or sell Bitcoin (affecting supply/demand/price) including any versions created in a hard fork.

This is important because the three branches of Bitcoin are at war right now. A powerful subset of Miners are threatening to force a hard fork of Bitcoin. Think Apple splitting into two companies: Apple and Orange. Which stock would you buy and which stock would you sell? Now you are thinking like a user of Bitcoin.

The arguments between branches are so ridiculous that Vinny Lingham sold 90% of his Bitcoin and is encouraging other Users to defend Bitcoin by selling now to put pressure on Miners. An example of a well known User exercising proactive Judicial power.

If this subset of Miners cause a contentious hard fork it means consensus could not be reached. A contentious hard fork is like a big fat VETO by the Miners. It’s bad for Bitcoin and confuses the market.

If a hard fork happens the Users (Judicial branch) will settle the matter via price discovery (demand being the ultimate arbitrator, like the Supreme Court). I believe the fork of Bitcoin called Bitcoin Unlimited will die off. The cost will be substantial and there will be no winners, only survivors.

Despite the damage, Bitcoin will bounce back quickly. Bitcoin has been declared dead so many times it’s truly an example of “What is dead may never die.”

I am still long.

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4 comments

  1. Krusty

    Sold 50% of my bitcoins. Hoping to jump back in at a much lower price.

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  2. sarcrilege

    Bitcoin is a threat to the fiat monopoly; BTC must be neutralized. The good old Microsoft “embrace, extend and extinguish” strategy might work here. Don’t be surprised when it happens.

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  3. PartTimeLover

    looking at STZ
    kinda has that rounded bottom that first fill the gap then complete to challenge the highs- about 10 pts away
    too bad did not recognize it last week @ 5 pts lower- maybe it will back and fill and work off the overbought.

    calls seem to be busy today- not big stuff but 5 c for each p.

    from the garbaaage bin
    PRGO
    has entered into the OA indicator but thinking it needs a fast down before getting in . – puts are active today. Waiting for a sign. eps is not until late may

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  4. rogue wave

    Excellent analogy for explaining the situation. Vinny Lingham said some big money (over $1 million) moved out over the last few days. This is ancient history now (Friday) He says that at 51:50 mins https://www.youtube.com/watch?v=xZGJeDZE6j0

    I’m not smart enough to figure out, so I will just hold. BTC is hard to kill. The banks would love to shut it down; but it’s not so easy. As Antonopolis says, you can’t un-invent it. The genie is out of the bottle.

    Vinny L

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