UPDATE – After posting this, coinbase released this guidance: https://www.cryptocoinsnews.com/coinbase-declines-sign-bitcoin-unlimited-rejection-letter-ceo-explains/
This guidance from coinbase is far more positive, than the collaborative statement released by the other exchanges. Coinbase carries a lot of weight, and I believe this decision has stemmed the tide of btc selling temporarily.
It could be the case that if Bitcoin Unlimited achieves the 75% hash power threshold the miners have set for themselves for implementation, that the other exchanges reverse their viewpoints to be more in line with coinbase’s stance.
In some ways it is like a game of chicken, with the exchanges far more likely to chicken out than the miners. If the miners simply ran 24 hours on bitcoin unlimited with the hash power sufficiently high, and 1 exchange like coinbase supporting them, it could very well cave the rest of the exchanges to reverse opinion. However, if the miners operated a week and saw a situation where core was still far more profitable to mine than the main bitcoin unlimited fork, then quite likely they would be forced to concede the economic situation to the exchanges and the markets which moved against them.
What this means for bitcoin is a volatile, uncertain situation going forward. A major drop could be the right moment to buy bitcoin and see it rise much higher should bitcoin unlimited win. Should the exchanges win in enforcing bitcoin core on everyone, then there is no reason to invest in bitcoin’s future, from my perspective.
ORIGINAL MESSAGE – In this video, I share my viewpoint on the present situation for bitcoin, given that the exchanges are opposed to a software upgrade on the bitcoin platform. I personally believe the ignorance of how consensus is reached is causing this issue with bitcoin. This issue unlike the bitcoin ETF, affects the fundamental analysis of bitcoin as a good investment. An altcoin called “Bitcoin Unlimited” with zero acceptance is not a good investment. A coin called “bitcoin” that is not really bitcoin because it has 75% reduced hashing power, and 4 transactions per second with high fees and no future with superior competition, is not a good investment.
Both coins fail as investments for fundamental reasons. As a fundamental investor, I must sell because the rules of fundamental investing are based upon fundamentals!
Fundamental investing definition: http://www.investopedia.com/university/fundamentalanalysis/
I hope to buy bitcoin back if the situation changes in the community toward a real solution for the problems this platform faces. As it stands, the core team is opposed to solving the problems with bitcoin, and bitcoin unlimited is the only viable solution that is presented to the markets today. However, if the exchanges are opposed to bitcoin unlimited, there is no reason to own it. Nor would there be any reason to own bitcoin core as the transaction limit and high fees will eventually suffocate that coin’s future.
Genesis Mining Discount: 6EFDl3