Wyre's Neil Woodfine on Bitcoin in China (Part 2): the Bitcash split and the trouble with ICOs
Neil Woodfine is the Growth Manager for Wyre in Asia and the Organiser of Beijing’s Bitcoin Meetup. He is Long Bitcoin. In this follow up episode of The Fintech in China Show with Neil Woodfine on Bitcoin in China, Neil talks with us about the tumultuous events within the Bitcoin network up to early August 2017. You [...]
In this follow up episode of The Fintech in China Show with Neil Woodfine on Bitcoin in China, Neil talks with us about the tumultuous events within the Bitcoin network up to early August 2017.
Nevertheless, the questions we discuss the recent attempt to fork Bitcoin and the creation of Bitcash, the extent to which power over the Bitcoin network protocol had become concentrated among Bitcoin miners in China, and the resilience of the Bitcoin network will remain crucial to Bitcoin’s future beyond the recent regulatory moves in China against illegal fundraising via ICOs, and beyond temporary halts to trading by any Bitcoin exchanges in China.
- The recent attempt to split Bitcoin and the creation of the altcoin, Bitcash.
- Why ‘scalability’ is a big issue for Bitcoin.
- The degree to which control over the Bitcoin protocol is decentralised.
- Whether ICOs are primarily scams.
- How these dynamics have played out inside and outside China.
- Bitcoin s development potential in China and elsewhere.
Selected links from the Episode
Bitcoin Cash: What You Need to Know by Jimmy Song
Why China Is Cracking Down on Cryptocurrencies and ICOs by Martin Chorzempa (September 15, 2017).
Detailed show notes*
- Introduction to Neil Woodfine and Wyre. (2.00)
- What was behind the recent attempt to split Bitcoin? (4:20)
- The failed attempt to take control of the bitcoin protocol. (5:22)
- How the Segwit upgrade to the bitcoin blockchain increases the blocksize and allows more transactions. (7:30)
- How the bitcoin blockchain uses consensus to verify transactions. (9:45)
- What the attempt to split Bitcoin tells us about the view that too much power had become concentrated in the hands of bitcoin miners in China. (11.20)
- The underlying resilience of the Bitcoin protocol’s decentralised network model. (15:00)
- The surge in demand for Bitcoin after the creation of Bitcash. (16.00)
- How many over-hyped blockchain projects have yet to show results. (17:00)
- Whether the Initial Coin Offering (ICO) model is a viable model for disrupting VC’s and equity markets or primarily a vehicle for fraudulent fundraising. (19:20)
- The problems with attempting to tie real world assets to the digital world via blockchain technology: the need for third-party verification. (24:00)
- Whether Bitcoin can be used to raise funds in a rational way. (28:15)
- Why scalability is a big issue for Bitcoin. (31:19)
- The security of Bitcoin transactions. (33:25)
- Bitcoin as a store of value. (35.00)
- How Bitcoin's incentive structure differs from traditional banking models. (38:00)
- Bitcash's following in China. (42.00)
- Bitcoin and blockchain development potential in China. (43:18)