Home / Crypto Currency / India’s Biggest Startup Incubator CEO [Falsely] Says Bitcoin Failed Due to $20 Fees

India’s Biggest Startup Incubator CEO [Falsely] Says Bitcoin Failed Due to $20 Fees


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According to Jay Krishnan, the CEO of T-Hub, India’s largest startup incubator & venture advisor to SRI Capital, Bitcoin has failed due to $20 transaction fees. Except that since December, for over nine months, the median transaction fee of Bitcoin has remained below $0.2.

In December 2017, the demand for Bitcoin and other major cryptocurrencies like Ethereum, Ripple, and Bitcoin Cash achieved an all-time high. The price of Bitcoin, which hovered at around $19,500 in the global market, surpassed $24,000 in South Korea, as premiums pushed the price of BTC up.

False Argument About Scalability

Bitcoin and blockchain-based systems, in general, are decentralized networks that exist on peer-to-peer protocols. As such, scalability through cryptographic engineering and development is required. Since the end of 2017, Bitcoin, Ethereum, and many other blockchain networks have seen a drastic improvement in scalability.

Bitcoin has integrated SegWit and Lightning while Ethereum is in the process of implementing Sharding and Plasma to potentially increase the transaction capacity of the blockchain to a million transactions.

Yet, Krishnan, a figure that is responsible for overseeing innovative developments in one of the biggest markets in the world in terms of population and market size, concluded that Bitcoin has failed due to its inability to address unprecedented levels of transaction activity and demand in December.

“The fallacy of Bitcoin as a currency is its transaction fee which is typically above $20. The transaction fee is paid to ensure convenience and security in the exchange. This is not only higher than the transaction fee paid for regulated currency but is also an indication of the security risk it holds,” he said.

The difference in stance towards cryptocurrencies by Krishnan and world-renowned venture capital firms like Andreessen Horowitz is quite evident. This week, at the TechCrunch Disrupt conference, legendary investor and one of the most successful venture capital investors Ben Horowitz said that crypto represents the birth of a new computing system.

In the beginning, crypto may seem more inefficient and impractical than legacy systems. But, its decentralized nature leads to the development of apps that were not possible to build before. He added that the deceptiveness of new computing systems is that at the start, they seem worse in most ways than old platforms.

Horowitz said:

“I think that there is probably more developer activity in crypto than in anything we’ve seen since the Internet and the right way to think about it is, it’s a new computing platform. Once every decade or two, a new computing platform comes along. The thing that is deceptive about is that when the new platform at the time is generally worse in most ways than the old platform but has some new capabilities.”

Bitcoin Has Succeeded

It is easy to find arguments to dismiss the emergence of disruptive technologies. Analysts condemned smartphones in 2007, as they seemed more inferior to computers at the time.

However, it is important to acknowledge the potential of new systems and the ability of disruptive technologies to create applications that have not existed before, such as consensus currencies like Bitcoin.

Transaction fees for using Bitcoin could be considered high for most people, even though it is currently less than $0.1. But, compare it to the fees involved in using offshore bank accounts to store money and $0.1 seems much lower than tens of thousands of dollars required to transfer millions of dollars.

With the adoption by financial institutions and investment firms like Citigroup, Goldman Sachs, Andreessen Horowitz, Morgan Stanley, and acknowledgment from government agencies, it can be said with sufficient evidence that Bitcoin has succeeded.

Featured image from Shutterstock.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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