Bitcoin miner investment thesis

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To alleviate this issue, the user experience needs to improve to a point where the normal person feels comfortable using it, which means simple — but still secure — storage; an easy, inviting way to pay for things; and attractive, user-friendly interfaces. It should be so simple to use that your grandma could do it. Quite simply, the fewer the steps the better click, click, boom. Merchant Adoption To attain global adoption, Bitcoin must be used in everyday commerce. Without invdstment in commerce, Bitcoin lacks utility.

It would not be very useful, nor would it be possible to unlock investmeng full potential or value.

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Fortunately, Bitcoin bitcoin miner investment thesis almost all key advantages over the predominantly-used, credit card system of today. Main payment method thesiz by masses Thexis are comfortable transacting with it Easier bitccoin use The currency used for transactions promotes spending over savings will be discussed further The current advantages the credit card system has over Bitcoin can change, but the disadvantages cannot.

Bitcoin easily outcompetes the credit card system in terms of speed and cost, as well as privacy.

In addition, it is also advantageous for merchants to accept Bitcoin because the currency itself is of limited quantity and makes a better store of value. The ease-of-use and comfortability factors will likely remain advantages of miner credit card system in the short-term, but over the long-term, they should lessen as Minr becomes ingrained into society and easier to use.

With Segwit, we essentially get a doubling of transaction capacity through a decrease in transaction size. When a person buys a product or service, they simultaneously pay and receive the product or service. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. Specifically, Yours allows users to showcase their talents and instantly be rewarded without requiring people to sit through time-wasting, annoying ads. Like the internet, it is impossible to fathom its reach or how it will specifically shape the world in the years to come. In Dash, everyone has a voice and the ability to propose projects directly to the network. These are raw so my advance apologies for anything too unsubstantiated or grossly generalized.

This is why, at this stage, we primarily see it held as an investment. This is likely to persist for some time because people are currently more interested in its price-appreciation potential rather than using it to pay for bitcoin miner investment thesis. If such bitclin point is reached, businesses and everyday people will likely prefer Bitcoin over traditional currencies. If everybody has the good, why would you want the bad?

  • Should this situation change, it could pose problems for cryptocurrencies.
  • To the extent I have explicit heuristics for investment, these are it.
  • The obvious counterexample is Satoshi Nakamoto, the mysterious entity that created Bitcoin.

Since Bitcoin holds thesis main advantages merchants care about, it is in their interest to do so. That is, as long as those advantages remain. Additional use-cases To further expand adoption, the number of use-cases also bitcoin to increase. In order for use-cases to increase, the soil at the base level must be fertile. Unsurprisingly, this means retaining the 10x superiorities — and most importantly, keeping fees low.

With a fertile environment, the vast potential of Bitcoin and its Blockchain can be tapped into, and grow unencumbered.


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Oh, the possibilities… With its internet-like reach, Bitcoin has the ability to disrupt entire industries and give rise to things that were never previously possible. We should also see many other disruptions in the financial bitcoin miner investment thesis as well as in the security, record keeping, publishing, and advertising industries.

Like the internet, it is impossible to fathom its bitcoin miner investment thesis or how it will specifically shape the world in the years to come. As current money transferring options are vastly inferior to Bitcoin in terms of speed and cost, this market is ripe for disruption. The problem is, money remitted back to a family or friend needs to be easily spent on everyday purchases.

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Without it, there is no reason for them to have Bitcoin. Thus, this use-case example illustrates why merchant adoption is so important, and why fees need to remain low enough for attracting and encouraging use. Bitcoin miner investment thesis creators could only get paid based upon the number of views they generate YouTubeor by selling advertisement space on their websites. Specifically, Yours allows users to showcase their talents and instantly be rewarded without requiring people to sit through time-wasting, annoying ads.

Bitcoin miner investment thesis

The content creators can either set bitcoin miner investment thesis a pay wall, or allow viewership for free. Regardless of which option they choose, it is always possible to receive tips from other users. Yours has also made an effort to minimize spam and trolling, by charging a few pennies to post content 10c and leave comments varies. This measure invites thoughtful dialogue, and naturally increases the quality of the content posted — something any Reddit user can appreciate. With the Yours ,iner, people can post content and get paid without having to develop a vast audience or go through a third party.

Bitcoin will not be able to disrupt the traditional financial system or outcompete alternative cryptocurrencies if it loses these primary advantages. This is why, essentially, Bitcoin needs to be like Amazon. Amazon has thrived by combining the fastest delivery with the lowest vitcoin possible. Amazon has scaled exceptionally well by adopting this strategy; and the reputation it gained from it causes people to start with them when shopping online.

Now imagine if Amazon switched gears and began significantly marking-up their products or stopped caring about how fast customers got their shipments. If they went this route, they would fall out of favor, and competitors thessis Wal-Mart would pick up the slack.

Unsurprisingly, this bitcoin miner investment thesis retaining the 10x superiorities — and most importantly, keeping fees low. Look forward to hearing from you! This sounds great if a working implementation existed, but currently, it only exists in theory. This measure invites thoughtful innvestment, and naturally increases the quality of the content posted — something any Reddit user can appreciate. Thus, anywhere between the Trades should usually not be advertised here.

Customers would likely convert for the simple reason that they have economic incentive to do so. In that same sense, Bitcoin cannot lose its most important advantages either. Bitcoin cryptocurrency market share prior to bottleneck: Blocksize increase Bitcoin Cash Increasing the blocksize is a fairly simple method of scaling. It investment thesis for far greater number of transactions processed within each block, and ensures transactions will not be backlogged.

This has been the scaling method used in the past, and this tnesis the path that Bitcoin Cash chose. However, this is a short-term scaling solution as the capacity increase alone will not scale Bitcoin to worldwide levels. As growth increases, the extra capacity that Segwit provides would fill up, and the cap would inevitably be reached again. Knowing this, the development team behind Segwit formulated a plan to scale Bitcoin using a sidechain called the Lightning Network.

They are of the opinion that Bitcoin itself cannot scale to worldwide levels, but believe this network will give it that ability. This investmeng great if bitcoin miner working implementation existed, but currently, it only exists in theory. First, a basic overview of how the Lightning Network operates: To open up please click for source channel using the Lightning Network, a user is required to move their Bitcoin onto the network with an on-chain transaction.

Then, the user needs to operate within the channel. This adds additional steps, layers of complexity, and it still requires users to conduct on-chain transactions.


Bitcoin miner investment thesis

For the highly technical, this might seem really cool. For the normal person, it sounds overwhelming. As a result, this added layer of complexity is unlikely to bitcoin miner investment thesis adoption of the everyday person. When a person buys a product or service, they simultaneously pay and receive the product or service. They do not typically form an ongoing financial relationship with a merchant or business.

As the Lightning Network requires parties to open up a payment channel with one another — and because it requires an on-chain and off-chain transaction anyway — why would anybody open up a payment channel to conduct a one-time transaction? If the Lightning Network was the main method for scaling, it would not assist in growth of merchant adoption.

The Lightning Network does have theoretical use-cases itself, but because one has to enter and exit the network through the Bitcoin Blockchain, additional use-cases can only come from within. However, theoretically, bircoin does have multiple use-cases itself such as forming payment channels between parties where many small, micro-transactions will be made; or between parties making many, recurring payments with one another. Using the Lightning Network to avoid mining fees under these circumstances could certainly be useful. Therefore, it does have use-cases itself, but only from within its thezis network.

Through thoughtful analysis however, it does not seem as likely. This type of sidechain has its own use-cases, but it does not promote merchant adoption, nor is it inviting to the non-technical bitcoin miner investment thesis. In addition, if the cost is btcoin pennies to conduct go here transaction on the actual Blockchain, the need for the Lightning Network diminishes. Considering bitcoin muner investment thesis reasons, and because there is no actual working implementation, it cannot be relied on as a primary scaling method.


Bitcoin miner investment thesis

With Segwit, we essentially get a doubling of transaction capacity through a decrease in transaction size. In the short-term, this should be, and has been, adequate for preventing transaction backlogs. Assuming that thesjs number of transactions continues to grow, it will not be adequate in the long-term. Inevitably, an additional capacity increase will be needed. Understanding now that sidechains such as the Lightning Network invesrment have specific use cases, the capacity increase will need to come in the form of an increased blocksize.

However, the developers currently responsible for maintaining Bitcoin are adamantly opposed to this solution. They are of the belief that Bitcoin cannot scale globally without sidechains, and the bicoin blocksize should remain. These teams share the philosophy that Bitcoin can scale at a global level, on-chain, without relying on sidechain usage. In addition, fees are extraordinarily low, transaction capacity is a non-issue, and the conditions for adoption growth are bountiful.

That option came in the form of Bitcoin Cash. With the transaction capacity increase, investmen would remain low, and it became a no-brainer that this invesyment the Bitcoin network to use — so they did. It also shows how important it is to foster conditions inviting for growth, with leadership that understands the importance as well. If something working successfully is neglected, and the intention is modifying it with something inferior, a consequence will result.

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Bitcoin Cash is that consequence, and with its superior transaction capacity, it is ready to serve the world. Retain your core competencies. Constantly improve and innovate. The Investment SWOT Analysis A SWOT Strengths, Weaknesses, Opportunities, Threats analysis is an objective examination used by companies to determine what they are good at, theiss their weaknesses are, potential opportunities that exist, and any issues or problems that may threaten their business model. Bitcoin Cash may not be a business itself, but it shares many similarities to one.

For this reason, the SWOT analysis is still an effective analytical tool, and we will use to it analyze and brainstorm its strengths, weaknesses, opportunities, and threats. Please feel free to include any that were missed Strengths: In comparison to the legacy Bitcoin network, it has less support in terms of wallet, invdstment, investment, miner, business, and user adoption Mining is not widespread Part of the industry views it negatively New and unproven Legacy financial system is deeply ingrained into society Requires people to lnvestment something new People still view cryptocurrency with skepticism Regulatory status is in a grey area Limited use-cases at this juncture Relatively few businesses accept it Opportunities: Other cryptocurrencies outperforming and taking market share by becoming more useful or efficient Adoption never accelerates.

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8 Comments
  1. Bitcoin miner investment thesis
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