Bitcoin Collapse As a Failed Experiment?
Mike Hearn, the former Bitcoin Core developer, decided to leave Bitcoin after spending more than 5 years being a Bitcoin developer. On his blog post, Mike Hearn explaining that Bitcoin collapse is the main reason why he decided to leave it.
Mike Hearn was one of a handful of developers around the world dedicated to maintaining the basic software that governs both the creation of new Bitcoins and the network on which the financial transactions take place. Had worked for Google more than 8 years, recently he is one of the most prominent leaders of the Bitcoin project. However, in December 2015 he sold the few hundred Bitcoins he had left and quietly took a job at a new start-up.
“Bitcoin is an experiment and like all experiments, it can fail…. I will no longer be taking part in Bitcoin development and have sold all my coins.”
Bitcoin collapse because the community has failed
The fight stems from growing congestion on the Bitcoin network caused by size limits within the currency’s ledger of transactions. If the limits aren’t raised, the result could be debilitating bottlenecks. When the networks run out of capacity, they will get really unreliable. If Bitcoin wanted to compete with mainstream payment systems like PayPal or Visa, which could process tens of thousands of transactions a second, it would have to do away with Bitcoin’s existing limit of fewer than seven transactions a second.
Mike Hearn has been a vocal proponent for expanding the size limits. But here is the problem. Bitcoin is open-source software, so any change has to be approved by a majority of the community, and it hasn’t been able to agree. Changing it requires consent from the so-called miners who have amassed the computing power to handle all the transactions. Currently the block chain is controlled by Chinese miners, and two of them control more than 50% of the hash power.
Mike Hearn explained why they are do not allowed it to grow into 3 main reasons :
- The developers of the “Bitcoin Core” software have refused to implement the necessary changes, they have chosen instead to ignore the problem and hope it goes away.
- The miners perceive doing so as “disloyalty” —and they’re terrified of doing anything that might lose the credibility from the investors.
- The Chinese internet is so broken by their government’s firewall that moving data across the border barely works at all.
In response of Mike Hearn analysis to Bitcoin collapse, followers and believers of Bitcoin extended their support to the network and downplayed Mike Hearn’s prediction on Twitter.
Just as loss of man who wrote classic literature doesn’t mean death of the English language, nor does loss of Hearn imply death of Bitcoin.
— Erik Voorhees (@ErikVoorhees) January 16, 2016
I disagree with Mike Hearn’s analysis and concerns (see LTB show next week). I thank him for all his work and wish him all the best. Onwards
— AndreasMAntonopoulos (@aantonop) January 15, 2016
Some of them agree that there are issues with Bitcoin governance and he believes that it can be fixed by concentrating more on the engineering aspect of the digital currency protocol.
Bitcoin Classic And Bitcoin XT
In last August 15th 2015, Mike Hearn and Gavin Andresen, one of bitcoin’s core developers, formally proposed raising the limit on the block size via an alternative version of bitcoin called Bitcoin XT, with higher size limits. However, it denied by Bitcoin community.
Bitcoin Classic, has emerged from the ashes of the XT/Core debate. It is a version of bitcoin that would allow for a two-megabyte limit. It appears to be quickly winning support.