The Battle For Bitcoin's Brand: We Need To Talk About Roger

Bitcoin Forking Meme

Comment of the Day @Bitperplexed

Bitcoin Brand Battle

Recently the CryptoTwitter Blog covered @rogervers's latest antics in his quest to hijack the bitcoin brand. Shapeshift recently integrated into the bitcoin.com wallet and accidentally called Bitcoin: 'Bitcoin Core', resulting in outrage on Twitter and a announcement from the Shapeshift CEO @ErikVoorhees:

We Need To Talk About Roger

Roger likes to say he was the 'first investor in bitcoin' and a 'bitcoin evangelist', mentioning it constantly in interviews as some sort of accolade to which he pins his identity and meaning in life. All power to him for claiming this title and in his defense he has dedicated much of his life, energy, intellect and wealth to further the cause of bitcoin but it seems pride and power have clouded his judgement of late. Unfortunately for the ecosystem, this comes at severe consequence: Roger owns bitcoin.com and its affiliated social media sites that together capture and influence a huge number of new users.

He is abusing this power and people are starting to get pretty angry about it. The latest example of the damage Roger is causing is the 'vulnerabilities' found in bitcoin.com's wallet. It stores the mnemonic seed as plaintext which makes it accessible by apps with root access. Roger (MemoryDealers) didn't seem to think this was a big issue. Not only did Roger not believe the 'vulnerability' to be a major issue, he also seemed to know the value of bitcoins stored by bitcoin.com wallets.

Another classic example is the way in which bitcoin.com sets its default wallet to BCash, meaning hosts of users send BTC to a BCH address. As you probably know the immutable nature of public blockchains means this money is lost forever. A surefire way to lose the faith and interest of new crypto enthusiasts. Coinbase have had to post this announcement on their platform to stop their users doing the same.

Coinbase Bitcoin Cash warning

Not to mention the other more nefarious but speculative arguments against BCash; low quality/number and pseudo anonymity of developers, centralized hash power, market manipulation, increased control from one man (Roger), increased profitability for miners. Even @NickSzabo4 who many believe to be Satoshi said BCash is 'centralized sock puppetry'.

The @CryptoGlobe Twitter feed is full with people debating the issue and one of their arguments against BCash is that it is trying to hijack Bitcoin's brand and network effects, something that has taken almost a decade to build. Secondly, and more seriously numerous 'newbie' investors are buying BCash and sending to bitcoin wallets. Ironically, Roger's 'mission' has been to spread bitcoin to the world; however, his net impact seems to be turning people away from the real Bitcoin.

Roger takes serious offense when people call Bitcoin Cash, BCash. A re-branding to 'BitCash' is gaining support as a pragmatic compromise to stop new users getting scammed and Roger not getting his knickers in a twist. I can only hope it gets adopted and people stop losing money buying BCash by mistake.

PS: You may want to have a look at this useful analysis from @whatbitcoindid, before you consider following Roger...

Upcoming Bitcoin Halving Event Could Drive BTC Price Even Higher, Analyst Explains

Vijay Boyapati, a widely-followed Bitcoin (BTC) analyst, recently published a detailed Twitter thread regarding the potential impact of bitcoin’s block reward halving event - which is now less than a year away.

In a series of tweets, Boyapati explained how the BTC halving event “interacts” with the pseudonymous cryptocurrency’s “recurrent hype cycles.” The former software engineer at Google questioned whether crypto bull markets may be attributed to bitcoin’s hype cycles, while also noting what was learned from previous BTC mining rewards halvenings.

“Constant Downward Pressure” on BTC Price Exerted When Miners Sell

According to Boyapati, crypto miners are essentially running “marginal” businesses as most of them sell the bitcoins they mine to cover operational costs. The Bitcoin protocol releases new bitcoins at approximate time intervals of (every) 10 minutes.

When miners sell their bitcoins, the crypto’s price is affected by “a constant downward pressure”, Boyapati noted. He added that “without new money” entering the digital asset market, BTC’s price would begin falling sharply. According to his estimates:

At a BTC price of $10,000 approximately $14 million dollars must enter Bitcoin to offset the downward selling pressure.

He continued: ”During the [cryptocurrency] bull market, demand far outstrips miner sell pressure, but eventually the cycle ends and miner sell pressure is amplified by investor's fear selling.”

Once the selling pressure has been “exhausted”, the market cycle “reaches capitulation”, Boyapti argued. He also mentioned that the downward pressure, which results from miners selling, is then “equipoised” with the upward pressure imposed by bitcoin investors who refuse to sell. This group of bitcoin holders (or “HODLers”) think of BTC as a legitimate store-of-value (SoV). Due to these types of market activities, the bitcoin price reaches a “steady plateau”, Boyapti stated.

Hype Cycles “Only Create a Temporary Equilibrium”

He further noted that the “price plateau of the classic Gartner hype” (excitement and investor enthusiasm created due to new technological developments like bitcoin) is “only a temporary equilibrium.”

Boyapati also pointed out:

While supply and demand are evenly balanced during the plateau, the Bitcoin halving disrupts the equilibrium by halving the sell pressure.

After a BTC halving event, which effectively reduces the daily supply of newly minted bitcoins by half their previous rate, Boyapti believes:

The equilibrium demand of HODLers now exceeds miner sell supply, tending to move Bitcoin's price upward.

He explained that the upward BTC price movements eventually begin to “feed” on themselves and usually result in the “next” crypto market bull run. It’s also at this time that new investors enter the digital asset ecosystem, Boyapati noted.

Does Crypto Market “Discount Halvings A Year In Advance?”

The former application developer believes that financial markets “do not mechanically react to known future events.” Moreover, he emphasized that bitcoin halving “occurs on a predictable schedule.”

He went on to claim that markets “anticipate” important future events and that it seems, from past experience, that the “market discounts halvings about a year in advance.”

Boyapti also pointed out:

[Historically,] the Bitcoin market begins its upward ascent about a year before the halving, and about a year after the halving goes parabolic. But markets anticipate, so this [may] happen faster this time...It appears...Bitcoin halving is a key fundamental driver of Bitcoin’s monetization.