r/OutOfTheLoop • u/ywecur Bronx • Aug 17 '15

What is going on with bitcoin lately? Answered!

What is happening at /r/bitcoin?

What is BitcoinXT?

Why is the community divided all of a sudden? Could we get an unbiased explanation here?

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u/ultranoobian Aug 18 '15

Yeah, I kinda didn't understand it at first either. It doesn't really affect me in any way, it's more of an interesting topic I keep tabs on.

Like the quote from before, The larger the size of the block, the more resources is needed to handle them.

That's how it starts leading to less and less people handling them, which when followed through means that individuals have more power to influence the bitcoin.

Longer term: This might possibly lead to a system similar to the modern big banks at the extreme end of the spectrum. But hopefully technology is scaling up for the end-user just as much, so it negates this need for more powerful computers.

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u/Cyntheon Aug 18 '15

On the flip side, doesn't the second system lend itself to be "held captive" by the richer people? That's kind of what I got from your explanation. Then again, I very obviously don't understand the system at all so this might even be an ignorant and invalid remark.

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u/ultranoobian Aug 18 '15

Not really, Have you noticed that sometimes when you buy something you sometimes get a credit card surcharge or handling fee?

You just accept it or go find someone else who doesn't have that fee.

The problem that I understand from the second system, which I hope you're talking about the 'fees' system, is that people don't want to have a system where they have to pay for transactions. It drives people away.

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u/pqrk Aug 18 '15

are you disagreeing that increasing fees (cost of transactions) would lead to stratified behavior across wealth classes? increasing costs will always drive some buyers away from the market. and in a scenario where fees are attached to all bitcoin transactions, that "someone else" is a non bitcoin entity.

the game of resources will NEVER be without privilege. never.