Bitcoin Forum

How will this affect the BTC/shitcoin exchange rate?

Non surprise-surprise: Bitcoin 2.0 is...   BITCOIN    

There is one fly in the ointment of curing the altcoin disease with pegged side coins.

Users will use a side chain for features they like, but there is 0 direct incentive for them to use a side chain to get a higher ROI on their investment.

Thus those who want to maximize ROI of some new feature such as for example on chain anonymity (off chain anonymity is untenable), will prefer to buy the altcoin version of the feature assuming that altcoin has a superior adoption curve to Bitcoin (remember smaller things grow faster on percentage basis).

And especially if that altcoin has an ecosystem that refuses to accept BTC directly because it is recognized that Bitcoin is a NWO paradigm wherein the future is Coinbase, Circle, Paypal, Facebook, etc will move their zombie masses onto a pegged side chain they control with a centralized ledger, with full compliance government KYC required on all transactions. The masses don't care. They already completed the KYC requirement when they joined those sites.

It will come down to a war over anonymity. Bitcoin gets the non-anonymous world. Another altcoin will vie for the anonymous world if it is done correctly. The key will be driving anonymous usage and thus adoption.

One could argue that an anonymous side chain would suffice for users of anonymity, but this depends on the usage of anonymity. If all you are doing is storing value, then you plan to cash out via BTC, then that isn't going to drive much adoption as evident for Moanero.

But if you've got an ecosystem for anonymity that has investors and operators who refuse to accept BTC then such an ecosystem can outpace Bitcoin's percentage growth and thus ROI for investors.

Why would investors and operators of an anonymity ecosystem refuse to accept BTC? Because they'd be shooting their own foot in terms of their investment in the altcoin with a higher growth rate. They'd be siphoning off their own network effects and diluting them into the larger monolith of BTC chains. It is a simple economic calculation. One can assume that anonymous operators will be intelligent, otherwise they wouldn't be interested in anonymity.

it's the time for bitcoin to suck again everything that altcoin, has stole from bitcoin in these 2-3 years, altcoin actually were born to help bitcoin or to offer a better alternative, then when the instamine come into play, those alt were seen only as a quick buck, i did some research and i found that all started with quark coin and its big instamine, from there there were no more incentives to create something useful besides scamming people with a new launch everyday, still don't hope to much for the dead of the alt scene when they clearly be used for pump and dump, forever
you call it forex 2.0, but with a dangerous trading

I dont think any coin that just copied what Bitcoin had and did not improve or bring anything new ever had any chance for success. Yes they can live forever, but will never have any real capitalization.

They are dead

Bitcoin is the only cryptocurrency that has any genuine chance to achieve mainstream adoption. All of the others are simply pretenders. We've had people coming on here dissing bitcoin but promoting ripple, monero, litecoin, dogecoin, where are they now?
None of these shitcoins ever prove to do anything productive, they're all on their knees & can't get up.
They offer nothing that we don't already have with bitcoin which has had 1,000,000 times as much exposure.
Don't bother with altcoins seriously, total waste of time.

All the alt coins should be consider as a penny stock.

Unless it did bring some unique form of service for a certain crowd etc. I never ever touched alt coins, and sold most for bitcoin.

Some altcoins have a space to live because they can do things that Bitcoin can't do due of it's core design. For example, Bitcoin can't deliver anonymity as deep as Monero's ring signatures.

Early Bitcoin hoarders and farm miners can't stand the idea of 2nd-gen crypto adoptees potentially getting rich too, they have to have all the wealth for themselves.

Just look at their language, they get all salty and call "all alt coins a scam" yet the next minute they are declaring that any innovations in the alt world can be done as a sidechain, I thought there was nothing of value in this "scam" alt market?  

How convenient too they let this community do all the work for them coming up with new ideas the last few years while they wait in the shadows to pounce and copy it for themselves. Instead of spending time in the trenches developing their sidechain concept, they are flying around the world going to their $2,000 a ticket crypto summits and events on paradise beach islands or 5-star hotels jerking each other off talking about the future of crypto while it is the minimum-wage kids in the basements actually pushing ahead and innovating.

There is absolutely no reason for Bitcoin maximalists to support side chains except to secure their wealth positions, because side chains only bloat up the BTC blockchain more, keep the server farms employed and further leave small miners out of the loop.

I swear you guys are worse than bankers.

@solid12345: I'm not dismissing all altcoins, some of them are certainly technically interesting, but it's not enough to make me 'switch'. Anything that's happening in altcoins could be adopted in Bitcoin if it makes sense to do so. Most altcoins are not really being used outside of speculative markets - Bitcoin itself is highly speculative, but at least a few people are using it.

Who said anything about switching? We should follow the model of numerous competing currencies that are constantly trading with and against one another much like Ron Paul has pushed for in the fiat world. One currency for all and monopolization is a dangerous model for society and economics.

Are there alot of scam coins out there? Sure. Are they an embarrassment to crypto? Absolutely. But Darwinism takes hold in the end and an examination of the ranking coins on coinmarketcap.com shows that the free market is whittling down the scam coins, the speculative money has been exiting most of the alt market and the few coins that prove their utilitarian value will survive in the end.

I agree and I'm not using Bitcoin only. I'm still using old-fashioned fiat money and I do have precious metals reserves and other assets. I don't want to rely completely on technology.

The ownership of the metals unless they are at home with you, are in a ledger somewhere in a computer, same for assets, cash is cash I guess, but physical cash will be gone within the next decade or two.
So basically, all we have is technology from now on, might as well bet it on open source one.

no need to bring sidechain in play to be honest, look at the altcoin section is full of dead garbage now more now than ever, they were doomed after the departure for the hype of doge


some sidechain can potentially offer anon and other cool features to bitcoin, i would not be so sure about their uselessness

Not that it matters much but you must have missed Feathercoin. That started the flood of useless alt-coins in my eyes.

Despite all the scams (copycoins) which are mainly rebranded clones there IS actually also a lot of genuine innovation happening in certain alt-coins. At the moment I like Monero and Dash. Bitcoin may need to innovate to keep up but can it? A simple thing like increasing block size shows bitcoin may end up struggling. 

It's easy to innovate if your coin remains relatively under the radar. I wonder how many alts would fall to pieces if they started to attract Bitcoin's transaction volume and the scrutinsation of their code.

I have known innovate alts to have forks and all kinds of other problems. They survived precisely because their transaction volumes are low. Bitcoin could not attempt innovations that risk forks or hacks, although it could assimilate new code proven to work in an alt.

The above is incorrect. On further thought, I have solved the economic threat of Blockstream's pegged side chains (it threatened to turn all innovation into Communism!). There is a win-win solution for side chains and altcoins to co-exist.  8) ;D

Exciting times ahead...

Bitcoin needs to become easier on the user-side in my opinion; so that the average person on earth can easily use it. Make easier wallets, on easier hardware. Create an easier possibility to pay with Bitcoin online, but also offline in shops. Create a easy possibility to buy Bitcoin (for the average person).

I'm not sure whether the "backside" of the coin has to be easy for that. For those people that are going to change the backside, I don't think it should become easier on the backside - they already know how it works.

instead of this whole side chain stuff, which is for alt coins.

why dont we just get rid of the alt coins, or have the alt coin section closed off to no longer get into alt coins in general.

because some of them offer good features, that bitcoin can utilize, like the infamous anonimity, or the mini-blockchain from cryptonite that resolve the issue of a big blockchain that keep to grow, and provide a good level of compresison of data

not to mention that mini blockchain could help against blockchain swelling by increase transaction bandwidth