Why Ted Bauman Is Skeptical About Bitcoin’s Future
Ted Bauman is an editor of The Bauman and Alpha Stock Alert at Banyan Hill Publishing. He currently offers his specialization in asset protection and in others areas of expertise. His recent analysis of the popular crytocurrency – Bitcoin – sheds some light on the possible amendments that can improve the stability rate of the currency, or else he sees it bound to fail.
We may see a functional, widely accepted cryptocurrency someday, but it won’t be bitcoin.#Crypto #cryptocurrency #cryptocurrencies #bitcoin #Ethereum #investing #stocks #StockMarket #BanyanHillhttps://t.co/re4MOkoAPo
— Ted Bauman Guru (@Ted_B_Guru) January 23, 2018
So, what is bitcoin exactly? Ted Bauman explains bitcoin is a currency, in the form of crypto that is a decentralized network existing within the world of computers. It is a virtual currency that offers some benefits as opposed to those of traditional currencies. Bitcoin’s decentralization makes it free from government manipulation. Bitcoins can be a private asset. They are created by a process called mining; this is an entirely computerized process. Whenever a bitcoin transaction is occurring, the process of mining is occurring simultaneously. You have to wait for the mining to be completed before your transaction is processed.
This is where the disadvantage comes in; the whole process being time consuming, especially in comparison to credit cards, makes it difficult to foresee Bitcoin taking over/replacing the fiat currency. The Visa credit card transactions on a daily basis oversees 1,700 transactions per second (with the capacity of completing up to 24,000 transactions per second), while a bitcoin oversees only processes 6.5 transactions per second.
To resolve this issue, a solution can be thought up but that would require somewhat of a compromise on bitcoin’s security. By reducing the amount of data that is processed in a mining block, through a technology called “segregated witness” the transaction can be sped up. But this in return makes bitcoin less secure.
Those who disagreed or found this technology skeptical began to use a “hard fork” instead. The hard fork uses a previous “blockchain” to formulate new transactions, but under a new system. This system is much larger; when the block size increases to eight megabytes, the verification process speeds up. However, since the technology is different, it has bagged a different name as well – “Bitcoin Cash”
This new blockchain retains value for all previous bitcoins. So, one bitcoin can still be redeemed for one bitcoin cash. The rising popularity of bitcoin cash has caused the bitcoin to tank. At the expense of bitcoin, the bitcoin cash is now worth a lot more than its initial value of 0. Also, since bitcoin lost value, while bitcoin cash gained it, the “segregated witness technology” was cancelled as a result.
What investors can do right now is invest in Bitcoin Cash. Another fork will appear as unanimous agreement regarding how to speed up bitcoin transactions is still waiting to happen. Perhaps bitcoin investors will be able to redeem their bitcoins for an equal exchange with the next fork off currency. If this development is perceived well by the market, this may just be an easy pay day for the investors. Ted, however, explains that he remains skeptical about this and will not lay a bet on it.
Born in Washington, D.C., while raised in Maryland, Ted Bauman is a specialist in analyzing market trends. He acquired his education from the University of Cape Town where he earned dual postgraduate degrees: History and Economics. He has also dedicated his time to serving executive roles in nonprofit organizations.
He possesses foresight into finance affairs through which he seeks to advise investors on what could be a good bet. His keen observation and studying of current developments helps him deduce possible future outcomes.