Category: BTC & coins

Robert Kiyosaki—American businessman and author of Rich Dad Poor Dad—maintains his protracted campaign for Bitcoin, Ethereum, Gold, and Silver, ceaselessly criticizing the government for the state of the economy.

In a recent tweet which was only one of the several elements that characterize his campaign for virtual assets, the entrepreneur declared, “Money is a drug. It makes people happy. Problem is when drug wears off people get unhappy. But gold silver Bitcoin money and stay happy”.

Kiyosaki has since the start of the pandemic been lambasting government policies which he believes would potentially lead to hyperinflation, disparaging fiat currency, and campaigning for the adoption of virtual assets which, in his words, are “real money”. England Crypto is popular.

The businessman who is also the author of Rich Global LLC noted that he is disinterested in ongoing arguments about which asset holds more value and is solely looking to acquire as much as he can. “So I’m just grateful I have a lot of gold, silver, Bitcoin, and Ethereum and I don’t get into the argument”, he said in a new Rich Dad Radio Show episode, further maintaining, “Just get as much as you can right now because the government is screwed. We’re screwed. Our whole economy is screwed”.

In his incessant campaign, Kiyosaki has not missed an opportunity to criticize the Federal Reserve especially in the area of economic policies in combatting growing financial problems. In one of his several tweets, he claims stimulus checks negatively affect the middle class, saying, “Millions very happy government passes US$1.9 trillion stimulus bill. Who wouldn’t be happy with free money? Problem is free money makes poor and middle class poorer. Buy more gold silver and Bitcoin”.

Late last year, Kiyosaki predicted Bitcoin’s “next stop” would be $50,000 when it was only a little above $19,000 sometime in December last year, urging people to purchase the crypto asset before his prediction materializes. He said, “Glad I bought Bitcoin. Next stop $50 k. Wall of institutional money coming 2021. Buy below $20 k […] Future bright for gold silver Bitcoin and entrepreneurs”.

Robert Kiyosaki races to buy Bitcoin and Ether as the economy weakens

Besides Kiyosaki, other notable individuals, including economists, CEOs, and financial experts have declared support for Bitcoin. “It’s probably going to US$100,000, then US$150,000, then US$200,000”, said Chamath Palihapitiya, founder, and CEO of Social Capital on CNBC’s “Halftime Report” two months ago. Germany Cryptocurrency is popular.

Howard Marks, billionaire writer and co-founder of Oaktree Capital Management in a recent interview said bitcoin is better than an emerging-market currency, finally letting go of his misgivings towards the digital asset.

Nonetheless, some investors have warned the public against investing too much in the cryptocurrency, one of whom is Mark Cuban, an American entrepreneur, who likened investing in bitcoin to gambling. James Ledbetter, an American author, also noted that bitcoin “is a highly volatile, highly risky investment”, asking investors to be “mentally and financially prepared” for a crash in the long run.

Do you ever get confused by all the terms you come across in the crypto world? Not bad! There are hundreds of different concepts that you only encounter in this world. In addition to those terms, there are also thousands of different crypto coins and tokens. Some of those coins are suspiciously similar. Both in content and in name. For example, consider Ethereum (ETH) and Ethereum Classic (ETC). Or Bitcoin (BTC), Bitcoin Cash (BCH) and Wrapped Bitcoin (wBTC). Bitcoin Cash was created by SegWit. That is why it is also known as the ‘traditional Bitcoin’.

There is a difference between traditional Bitcoin and SegWit Bitcoin. Yet few people know that this difference exists. Let alone that they know what this difference even means. In this article I am going to explain to you what Segregated Witness (SegWit) is, how it works for Bitcoin, and what the difference between Bitcoin and SegWit Bitcoin is. I do all this in a simple way, so that it is understandable for both beginners and advanced users.

What’s the problem?

Almost everything arises from a problem. That also applies to SegWit. To better understand what this is, let’s dive a little deeper into the problem first. The solution is then much easier to understand. You will have noticed that Bitcoin runs into several problems. The blockchain has to contend with problems, of which the scalability is the greatest. The scalability problem makes it difficult for Bitcoin to scale up. FTX review is positive.

Every blockchain has a transaction time limit. This means that only X number of transactions can be processed per minute. Imagine that 100 transactions can be processed per minute. Then 200 transactions per minute come in. This means that half cannot be processed and will be queued. We call this queue the mempool.

Bitcoin can process an average of 7 transactions per second (TPS). Because Bitcoin is used more and more, it sometimes happens that the number of transactions that are done exceeds the limit. And that can cause problems.

For example, people who carry out a transaction have to wait longer before the transaction is validated. And often they also pay higher transaction costs. Fortunately, a technique was developed a while ago that can partly solve this problem, called Segregated Witness (SegWit).

What is Segregated Witness (SegWit)?

The number of transactions that can be processed is partly determined by the size of a transaction. Just think about uploading files to the internet. The moment you have photos that are all 1MB in size, you can (for example) only upload 10 photos per minute to the internet. But what happens if you compress these photos first, making them only 500kB in size? You can upload 20 per minute! That means you have doubled this number. Litecoin LTC is well known in crypto.

SegWit for blockchains

And that’s what happens at SegWit. It is a protocol that was designed by Pieter Wuille in 2015. This protocol ensures that the size of the transactions is reduced by adjusting the structure of the transactions. The SegWit removes the signatures from the transaction data and places them at the end of the transaction. And that frees up a lot of space. 60% of the transaction size consists of the digital signatures. Pieter Wuille felt that there was still a lot to be done here, and therefore decided to approach it this way.

Before Bitcoin used SegWit, a maximum of 1,000,000 bytes (1MB) could be put in a block. Once this limit was reached, no more new transactions could be added. Since SegWit is used, more weight can be put in the block. And that’s something that’s hard to understand. The weight of a block is different from its size. Through a mathematical trick, SegWit makes it possible for these blocks to store 4MB of transactions in a block. However, this almost never happens. You often see that blocks are no larger than 2MB. There are also different forms of SegWit. Think of Legacy, but mainly SegWit and Native SegWit (which is also called bech32). Read more about the difference between SegWit and Native Segwit here.