A little concern here – my post on Bitcoin is stressing many. As I read through the LinkedIn comments along with the digital bombs (expected: LinkedIn is contact sports; if you do not expect them, do not share), I want to help them. I am not attacking your beloved Bitcoin; I simply said “shine your eyes”. That phrase in Nigeria means “be careful”.
The liberator now needs liberation. Now, national parliaments should pass laws that would say “Bitcoin cannot go down but up”. Lol. Good people, let us show common sense: there is no way in this world where anyone can create his currency and yet everything would still work normal. Optimistic exuberance on your computer screen must not take away the reality that getting hard Naira is tough. MMM, Bitcoin… shine your eyes. Yet, blockchain remains an opportunity.
The basis of my post is simple: if you have a financial instrument that moved from about $19k to $3.4k within a year, it is possible regulators would investigate for underlying issues. Most likely, things cannot be overly normal for that movement to happen. Telling people to be careful in such a market seems like a sensible thing to do.
As I have noted, I will be the first to buy crypto created, hosted, mined and exchanged in Nigeria [I trust EFCC to keep order]; others can join but it must be natively Nigerian. If you have one, let me know. I will buy to support. But where there is none, in Nigeria, I will always tell you that our Central Bank is still a safer option than what is out there. There is “freedom” from government to “bondage” to other lords.
Yes, if the top 1% of Bitcoin Community controls more than 99% of Bitcoin Wealth (1000 people control 40% of the market), I do not see the decentralization. And if Bitmain controls 51% of Bitcoin mining hashrate, I have no understanding why the guy in Lagos thinks this is a level playing game.
Bitmain has attained approximately 42 percent control of the Bitcoin network hashrate. This figure brings the company tantalizingly close to 51 percent mark where things could get interesting. Bitmain is the biggest manufacturer of BTC mining hardware, and they also own the largest Bitcoin mining pools in the market.
Assuming the company decided to apply all of its mining resources to the BTC network, its control of the blockchain’s hashrate would increase. This increase, however, wouldn’t be linear since the mining difficulty in BTC exceeds that of BCH by over 70 percent. Thus, only an additional three percent would be added to Bitmain’s control if it stopped sharing its hashpower between BTC and BCH, focusing only on Bitcoin. By so doing, Bitmain would control 45 percent of BTC’s network hashrate.
Yet, I do not expect this explanation to reduce the stress. Take this that it is my attempt to make people have good weekends. And do not remind me of the value of blockchain (we all know that). I am simply saying “shine your eyes” as you turn a “currency” into an “investing instrument” where you buy ‘Naira” and then wait for it to “grow” instead of using it (as tender to settle debts) as most people typically use currencies!
Finally – be open to other perspectives no matter how fanatically you love Bitcoin. Sure, in the Bitcoin Age, it could be the hardest currency to create!