What happens if everyone starts using Xapo for Bitcoin transactions?

[siddartha1492]

Hi All
I had this question (probably stupid) regarding Bitcoin transactions. As you might know Xapo to Xapo or basically same Bitcoin wallet to same wallet transactions are free and off chain. So what happens if everyone uses just 1 wallet for the transactions among them. I know this case is not possible practically, but just think about it in theory. If this happens, then will Bitcoin mining become non-existent? I know I am missing out something, but just not able to get it.

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[1714777529]

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[Kprawn]

Hi All
I had this question (probably stupid) regarding Bitcoin transactions. As you might know Xapo to Xapo or basically same Bitcoin wallet to same wallet transactions are free and off chain. So what happens if everyone uses just 1 wallet for the transactions among them. I know this case is not possible practically, but just think about it in theory. If this happens, then will Bitcoin mining become non-existent? I know I am missing out something, but just not able to get it.

This is the type of scenario that we are trying to avoid. Xapo is a centralized service. What does this mean to you? Well,

centralized services are being targeted by governments and they are also being forced to do what these governments wants

them to do. If the US government wants to stop donations to Wikileaks for instance, then they can persuade or coerce Banks

and PayPal {centralized entities} not to allow transactions to these organizations. We do not want that. These centralized

services are soft targets for governments and they can be taken down.  

[siddartha1492]

This is the type of scenario that we are trying to avoid. Xapo is a centralized service. What does this mean to you? Well,

centralized services are being targeted by governments and they are also being forced to do what these governments wants

them to do. If the US government wants to stop donations to Wikileaks for instance, then they can persuade or coerce Banks

and PayPal {centralized entities} not to allow transactions to these organizations. We do not want that. These centralized

services are soft targets for governments and they can be taken down. 

I already mentioned this scenario is not possible considering the decentralized nature of Bitcoin, but what if that happens in theory? Then will Bitcoin mining become non-existent?

[h0lybyte]

Factually, xapo was a used by millions of users as a need of wallet and i remembee they hadn't fee on transactions initially but when the number of users increased, they changed their terms suddenly and perhaps xapo was first wallet who encouraged other wallet to apply higher fee on transactions. Now if everyone uses xapo, they will occassionally increase more fee

[stompix]

Hi All
I had this question (probably stupid) regarding Bitcoin transactions. As you might know Xapo to Xapo or basically same Bitcoin wallet to same wallet transactions are free and off chain. So what happens if everyone uses just 1 wallet for the transactions among them. I know this case is not possible practically, but just think about it in theory. If this happens, then will Bitcoin mining become non-existent? I know I am missing out something, but just not able to get it.

Once everybody sends their coins to xapo and nobody withdraws BTC from xapo we are not going to have any transactions.
Mining will continue as you can mine even if there is nobody sending and receiving coins.
Miners will keep on getting their block reward, until this also dries up and then the whole chain might be supported by hobbyists.
Xapo will become some kind of Paypal and Bitcoin....will probably die.

Factually, xapo was a used by millions of users as a need of wallet and i remembee they hadn't fee on transactions initially but when the number of users increased, they changed their terms suddenly and perhaps xapo was first wallet who encouraged other wallet to apply higher fee on transactions. Now if everyone uses xapo, they will occassionally increase more fee

Millions? I really doubt it.

[SUDARMONO]

It may be inconceivable that this is all happening, and it may also damage the bitcoin price, but I do not think it will happen.

[RNC]

This is the type of scenario that we are trying to avoid. Xapo is a centralized service. What does this mean to you? Well,

centralized services are being targeted by governments and they are also being forced to do what these governments wants

them to do.............................

What you mean like Coinbase and all the other centralized services including the mining pools could come under attack by the
government and what about the lightning centralized banks that are coming our way.

I mean it's not like any money has ever, ever gone missing from Bitcoin is it now.
http://www.whoar.co.nz/2018/bitcoin-man-claimed-cryptocurrencys-inventor-accused-stealing-5bn/

Someone stole my blockchain and now they are coming for my hidden off-block lightning bank hubs and the cheek of these
people is they will be running these banking hubs on networks with redundancy built into the system just in case a
server goes down due to network problems that I forgot to even think about.

We need to make a pledge only to trust new ICO's and Bitcoin and must take this Xapo down before it starts so will you
help me please.

[gentlemand]

If Bitcoin became a full on database coin it would of course fail. It never will because enough people need and value its qualities.

There are legions of people who'll never be allowed to register with services as uptight as Xapo or Coinbase. Either they don't have ID, don't want to hand it over, are doing questionable things with their coins or simply live in the wrong country.

 

[RNC]

Factually, xapo was a used by millions of users as a need of wallet and i remembee they hadn't fee on transactions initially but when the number of users increased, they changed their terms suddenly and perhaps xapo was first wallet who encouraged other wallet to apply higher fee on transactions. Now if everyone uses xapo, they will occassionally increase more fee

You mean here i was, paying $40 plus in transaction fees and now you tell me it was all a waste of money the other month.

Have you seen that TV advert where someone paid $10,000 in estate agent fees to sell his house and later someone told him
about selling his house without having to pay any commission fees.

I am that man, I am going to kk...kiiiiii kkkk  Kiss you  

[RNC]

It never will because enough people need and value its qualities.

Good to hear so you won't mind me asking you to list them and then give your reason why each answer is better then gambling with one of the many other
alt-coins that we can pick from.

I can see why you have so many merits and I have none in this house of the money god so i am sure you can teach me a lesson or two.

[gentlemand]

Good to hear so you won't mind me asking you to list them and then give your reason why each answer is better then gambling with one of the many other
alt-coins that we can pick from.

I can see why you have so many merits and I have none in this house of the money god so i am sure you can teach me a lesson or two.

Pah. Most of my merits were automatic for being part of the furniture here.

It's not very complex. If you're interested in not having your transactions fucked with then Bitcoin has the most history, battle testing, mining power, development, network effect, awareness and volume. It's also focused on one thing - being decentralised money. It's low on silly bells and whistles.

The next biggest is Ethereum. Ethereum has already rolled back its blockchain once which is the most ultra no no imaginable. And it's not even supposed to be money. The majority of the rest are appalling junk like Bcash with one miner and hardly any developers, or pure fiction like Cardano.

If you want to make some pennies you may well indeed make more or lose more with other coins.

[siddartha1492]

Once everybody sends their coins to xapo and nobody withdraws BTC from xapo we are not going to have any transactions.
Mining will continue as you can mine even if there is nobody sending and receiving coins.
Miners will keep on getting their block reward, until this also dries up and then the whole chain might be supported by hobbyists.
Xapo will become some kind of Paypal and Bitcoin....will probably die.

Are you sure that if there are no on chain transactions, then miners can still mine the Bitcoins and get the reward. Because I think mining is basically the verification of the transactions. If there is no on chain transactions, then how can mining be possible?

Note: I Can't believe that people don't read the question and just start spamming unrelated answers. Only Stompix tried to give me the answer to what I actually asked.

[Herbert2020]

Once everybody sends their coins to xapo and nobody withdraws BTC from xapo we are not going to have any transactions.
Mining will continue as you can mine even if there is nobody sending and receiving coins.
Miners will keep on getting their block reward, until this also dries up and then the whole chain might be supported by hobbyists.
Xapo will become some kind of Paypal and Bitcoin....will probably die.

Are you sure that if there are no on chain transactions, then miners can still mine the Bitcoins and get the reward. Because I think mining is basically the verification of the transactions. If there is no on chain transactions, then how can mining be possible?

yes they can. a bitcoin block can be valid as long as it has at least one transaction and that one transaction is the coinbase tx which is giving the founder of the block the block reward plus fees. there is nothing forcing a miner to include any additional transactions in that block, only an incentive to get the fees.

if you check the blocks that are found every day you sometimes see these "empty" blocks right now. of course the reason for them is different (for example spy mining). or you can simply check the early blocks (anything below 100) to see empty blocks.
example:
Block #511512
 https://blockchain.info/block/0000000000000000000d637d922588b7d30c85fd35d87b42ef86a8ce9609764e
Block #10
https://blockchain.info/block/000000002c05cc2e78923c34df87fd108b22221ac6076c18f3ade378a4d915e9

[siddartha1492]

Thanks Herbert. That pretty much clears it then. Miners and mining will remain to be an integral part of the Bitcoin blockchain even if there are no on chain transactions.