As I said earlyer there is no "THE Value" there is only a Price of something. And the Price of Something does not say much about the values.
privacy can bring big, big value. When you want a store of value, it has to be annonym and private
Bitcoin and Block Chain in general is everything but private
But there will be solutions. And oh boy there will be demand. Here in Europe soon the big cash notes like 500€ will be banned, because it is used mostly by criminals. Im not sure about USA (maybe you can tell us)
Normal people like us think: well than the criminals will use 100€ paper notes .... yes this will need 5 times the space for storing and for the big fishes annonym storing is the biggest problem.
Stop beeing naive now! Other wise they will take your naive money
Blockchains are NOT (not not NOT!!!111!) good at:
If you know the adress of a person (this is the public key) you know EVERYTHING about the interactions of this person on the chain. For what amount does he/she buy? And who is recieving the money (which shops?, which sites?) You can do a whole profile of this person.
Lets make an exsample: Alice has a shop, she sells flowers. When somebody buys some flowers he has to pay by scanning her QR-Code. Now there is Bob. Bob is the owner of the new big flower shop on the other side oft he street. He wants to take over the business of Alice. Bob can look up every Tx to Alice and from Alice. He knows when she is out of stock, he knows every customer of Alice and so on… yes well it is still pseudonym (most people are) but bob does not care about names 😉
*well I know in kryptology books Alice and Bob are a couple (in my example its some wired kind of capitalistic dagoberd duck hate love 💜💸💰)
This is the complete transparency we see in Bitcoin. This is what Nakamoto wanted, but it comes for a hughe price (no privacy/ anonymity, never ever!)
So repeat: Bitcoin will never ever, ever, be annonym, yay! (still like it? Yes of course you do, you have facebook 😊)
This has a hughe up-side: when you want to stop corruption and criminal actions, its perfect
Well „they“ can still use their worthless Fiat… hopefully the new payment wont be human slaves
Yes Bitcoin was historical used by criminals and „criminals“ (but those criminals are gone now 😉) BTC-Silkroads are dead. They were not using it because of technical annonymity they used it because it was well combineable with deep-web (but not in all cases, some realy big fishes were selling in clear web…yea) and it wasnt controlled back than. It was practicaly quite annonym yes (technical not!)
PHYSICAL Fiat money aka. cash is the most annonym payment ever invented (ask Pablo)
For traking blockchain interactions,
You dont need the name of a person, when you instead got the IP (your IP says more than every name on earth ever could) What are you searching on web? What are your contacts? What is your telephon number? Everything (even when you are using different IPs). Esspecialy when you use multi lateral trading platforms like: Kraken, Bittrex, Poloniex, Bitcoin.xyz they will know exactly who you are and when you skip taxes 😉(you and your „sic criminal“ behavior will be punish when they find the time). In 2015 the IRS allready observed bigger accounts with the service called „chainalysis“
Consortium chains (e.g. only the biggest financial Institutes can see your Tx)
The price here is low trust (because its a future WITH banks)
Fully private chains (only ONE entity) it is by default a centralised server
The price here is lower decentralisation level
The Concepts for Private Chains avaiable are:
ZK-Snarks - Best Stuff so far
Proves integrity of process and selective transparency, with no compromisse of privacy to anything you want to keep secret
Possible exception: time stamps (and IP adresses, but this can be fixed)
This means: you can still see WHEN the Tx was performed
Vitalik says: „this is basicaly the ultimate partner tech to blockchains“
….and well Banks like J.P.Morgan are cooperating with ZCash, because they need ZK for their own private/public blockchain. (its called "Quorum")
Blockchains provide trust (correctnes of process and authetisity) by the cost of privacy!
And ZK-Snarks give you back the privacy
Ring signatures like in Monero also do (more efficient but also more limited to a subset of applications)
Take 1 second to one hour depending on application to make a proof
Verification also fairly expensive(~5-50ms)
Tooling to easily use is not yet out there
Trusted Setup: every new F requieres a commitee of people to generate a „prooving key“
If 100% of the comitee colludes, then they can make fake proofs
(6 peole are needed)
Vitaliks „road map“ recommendation to developers
Now: think about low-tech ways to improve privacy
-e.g. use differnt accounts for diefferent apps
State Channels
Soon: ring signatures (once good ethereum-compatible standardized impls exist)
Later: ZK-Snarks and similar stuff (who knows what everything is possible…no not everything :D)
My application of common sense based on these informations
Im not interestet in the price (dont care about big numbers measured in Dollar)
I dont care for past return
I only care for future return
I dont own Bitcoin
I own Litecoin (the only private part of Bitcoin ... after the article you should understand)
I own ETH (the most advanced DLT with the best developer team out there)
I own some private coins like Monero (its digital cash, quite anonym)
everything else stays private :D
Vitaliks talk (Dec 2017) *pro tip: ignore the dumb comment section
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Likess 👍, Resteems 🍻🍻, comments 💙💙 are wellcome
