October 13th, 2017
Bitcoin hit a new all-time high of $5,200 yesterday. Finally.
In my humble opinion...
Heads up Jamie Dimon, you're gonna want to see this.
Major milestone: #bitcoin market cap surpasses that of Goldman Sachs at $95 billion 🚀
Next: $100 billion & eventually $350 billion JPMorgan pic.twitter.com/3H93KtwBaP
— Joseph Young (@iamjosephyoung) October 13, 2017
Coin of the Day
Get your logistics in order.
IMMLA wants to solve the logistics market's problem: it's IT-intensive, has severe information barriers, and often has a dramatic misallocation of resources. Knowing this, it makes sense that almost 80% of transport exchanges perform inefficiently; for a small business, this can be a death sentence. IMMLA hopes to provide a solution and make this industry faster, safer, and cheaper for cargo owners and freighters to complete a cargo job. It's not the sexiest issue in business, but it's an extremely costly one (no wonder IMMLA is up against some stiff competition). Between tax evasion, currency problems and trust issues, the transport and logistics industry is pretty risky. Using smart contracts, GPS tracking, and dutch auctions, IMMLA is simplifying supply chain management for the better.
Who needs reality TV when you have the SegWit2x debate? Here's what you need to know to sound (and actually be) informed.
Here's the skinny: in a current crypto transaction from Person A to Person B, the sender forwards their scrypt (their personal signature) and a public key in a "block". This block has a limited number of transactions it can hold before it fills up. Each transaction in a block has to be confirmed by a series of miners for it to be approved. One of the biggest issues is that the scrypt carries too much information, and slows down transaction times.
SegWit stands for Segregated Witness; this process involves separating the scrypt from the public key and putting it into an "extended block". Miners confirming the transaction don't see the scrypt because it's now been somewhat divorced from the original transaction. Block sizes are also increased to allow more transactions. In theory, SegWit makes transaction times faster because there is less information to store in each node (computer), and each block can hold more information.
Check out this very basic but useful video about Segregated Witness (<5 minutes)
This is a big debate amongst the crypto community because of what's at stake: a ton of money. And power. The usual.
As of now, a significant portion of the Bitcoin community, especially Bitcoin Core developers, are against the hard fork that will result from SegWit2x. Yesterday, a major mining pool called F2Pool withdrew their support from Bitcoin Gold, despite other massive groups such as Coinbase and BitPay being in support of the divisive project. F2Pool currently mines a whopping 10% of the blocks on the Bitcoin network - significantly decreasing the number of Bitcoin miners that can "signal" their support. After this disruption, 85% of miners are currently in support of the hard fork. Others claim that this was the death blow needed to take the fork down.
Some of the key issues are that we don't really know much about the project. This includes the number of developers working on it (one Bitcoin.com article claimed that only a single developer has been working on the project – unlikely, but not a good start), and the obvious confusion that would result from having not one, not two, but three Bitcoins: Bitcoin, Bitcoin Cash, and Bitcoin Gold. There's also a possibility that due to the fewer nodes needed to confirm a block, miners could group together and reject specific transactions, thus undermining the whole concept of decentralized transactions.
Oh, and Roger Ver (AKA "Bitcoin Jesus", pro-Segwit2x) and Charlie Lee (creator of Litecoin, anti-Segwit2x) have hedged a $4 million bet against each other regarding the fork. It's getting fiery, folks. They question is why are some people such as Charlie Lee against the fork? More on that in Monday's newsletter.