TL;DR: CoinSpice scours the Twittersphere to shine light upon the top crypto tweets of the week. Blockstream and BTC developers created the high fee problem, and now they’re selling the cure, according to Blockchair.com lead dev Nikita Zhavoronkov. Meanwhile, its cozy relationship with stablecoin juggernaut Tether (USDT) seems to get uncritical attention from former employees now writing for mainstream crypto news outlets, points out Kyle S. Gibson. Those are just the start of a juicy set of great tweets this week!
#9 Blockstream is There if You are Actively Trading and Don’t Like High Fees
It’s a pattern veteran Bitcoiners have watched now for years. Speculative prices of the world’s most popular cryptocurrency, BTC, shoot up, causing media attention and new interest in the phenomenon. Especially during economically desperate times, a potential global depression looming in the air, regular folks are looking for investments, answers. By sheer network effect, BTC is poised to take advantage of it all. Until it doesn’t.
if you are actively trading and don't like high fees, use exchanges with 🌊 @liquid_btc integration, or complain to an exchange that doesn't. pay 1-2c to clear in 2mins final, while others are paying 50c-$2.50 for 1hr+ transfer. https://t.co/gqbNaW2CAj be part of the solution pic.twitter.com/J4zWQJJgTW
— Adam Back (@adam3us) May 23, 2020
Noobs look-in to Bitcoin, and find BTC waiting. Maybe they snap a few satoshis worth, excited to be part of a financial revolution. Reality hits very, very hard not soon after: to move the coins, fees are ridiculous, waiting times to have the transaction confirmed go on for hours, even days. The noob inevitably shugs at what the fuss was all about. Just another failed nerd promise.
That might explain why BTC hasn’t been able get over the $10,000 hump, a psychological number triggering hopium like no other. Noobs push the price on the rumor, and then dump it like a rock after horrible user experiences. Less well known is how that came to be, how mempool clogs, long wait times, high transaction fees were planned, manufactured. BTC core developers purposefully held back innovation such as block size increases, championing so-called “off chain” solutions to this “problem.” That, and then they started companies like Blockstream, and later its exchange product Liquid, to take advantage of the obvious logical end to such a scenario. Cripple the patient, and then sell ‘im the crutch.
— Grey Jabesi (@greybtc) May 22, 2020
#7 The Worst Obstacle
Blockchair.com lead developer Nikita Zhavoronkov puts the Blockstream-led irony concisely in his recent analysis. “Blockstream and Core ‘developers’ are the worst obstacle Bitcoin has ever faced and has yet to overcome. They’ve created a problem and now selling a solution — a centralized and anti-privacy one,” he explained.
Blockstream and Core “developers” are the worst obstacle Bitcoin has ever faced and has yet to overcome. They’ve created a problem and now selling a solution — a centralized and anti-privacy one. https://t.co/cBrViykvHl
— Nikita Zhavoronkov (@nikzh) May 24, 2020
Blockstream CEO Adam Back replied Liquid is “pro-privacy: Confidential Transactions with #bitcoin Every layer2 makes tradeoffs, or Bitcoin would already have that. @Liquid_BTC is great for speed, confidentiality and relative security for traders vs exchange custody. Helps scale as price insensitive traders don’t bid up fees.”
Zhavoronkov soon made another connection. “It doesn’t matter that the sidechain has all these privacy whistles if the peg itself is centralized and corrupt. Exactly how many companies from your partner list don’t do KYC on an attempt to exchange L-BTC for BTC?,” he asked. “These are exchanges that don’t offer 1:1 cashouts,” Zhavoronkov continued. “Of course there will always be black markets offering to exchange L-BTC for BTC for 1-99% without any KYC process, I’m not arguing that. What I’m asking about is the direct peg-out,” which led other commenters to wonder aloud about Blockstream, Liquid, and its relationship to Tether (USDT). Back answered, “We’re working on one.”
#6 Former Employee, Operator of a Payments Network for Tether USDT
Zack Voell is not an ordinary “data journalist” for mainstream cryptocurrency news outlet, CoinDesk. CoinSpice readers might remember Voell as quite the partisan figure, actively lobbying Twitter CEO Jack Dorsey to seize the @Bitcoin account. He hates, hates peer-to-peer electronic cash, and the “data journalist” has even gone so far as to create rather amateurish charts to buttress whatever point he’s attempting to make in opposition.
Why do Voell and other Blockstream employees all have such high regard for Bitfinex and Tether? https://t.co/mAKN9nd4CC
— Kyle S. Gibson (KyleCoin.com) (@KyleSGibson) May 25, 2020
Enthusiast Kyle S. Gibson noticed something else about Voell, more recently. The former Blockstream employee, Gibson suggested, might be helping to trade against his own readers. “People reading Zack’s articles about Tether,” which Gibson claims to be slanted positively toward the only stablecoin that matters, “unless they go to his profile page and see that he used to work for Blockstream AND already know Blockstream does business with Tether, might get the false idea that Tether has ever once acted as a legitimate company, lmao.” The plot, she thickens.
#5 Unpopular Opinion
Unpopular Opinion: The supply of #Bitcoin is higher than 21 million. Exchanges leverage the existing supply of any #crypto asset in much the same way banks leverage the supply of fiat money. The only protection is to hold your own crypto. Not your keys, not your crypto.
— Weiss Crypto Ratings (@WeissCrypto) May 25, 2020
#4 Shots Fired
Shouldn't every steem user just be moving to hive at this point?
— vitalik.eth (@VitalikButerin) May 19, 2020
Number 1 use case for Ethereum: Tether. Number 2: a ponzi. pic.twitter.com/CX6ZhtIaqm
— David Gerard (@davidgerard) May 20, 2020
#2 Used by Every Crypto Ponzi Scammer
Bitcoin pizza day (yesterday) is fun.
Sadly it’s also used by every crypto Ponzi scammer to persuade people to invest in worthless tokens that’ll one day be worth ££: ‘did you hear the story of Laszlo Hanyecz, who spent 10,000 btc on 2 pizzas in 2010?! That’s where we are now!’ https://t.co/p4Jx8ewf21
— Jamie Bartlett (@JamieJBartlett) May 23, 2020
#1 Keep Hope Alive
— The Crypto Lark (@TheCryptoLark) May 25, 2020
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