Btc.top CEO Highlights the Benefits and ‘Golden Mean’ of Bitcoin Cash

Amid the debate hosted by Bitkan, Zhuoer highlighted the top three advantages tied to the Bitcoin Cash ecosystem. During the dialogue, Zhuoer also …

On July 23, the CEO of Btc.top, Jiang Zhuoer, debated Nchain’s chief scientist Craig Wright in regard to the civil war between BCH and BSV that took place in November. Amid the debate hosted by Bitkan, Zhuoer highlighted the top three advantages tied to the Bitcoin Cash ecosystem. During the dialogue, Zhuoer also emphasized that the infrastructure Satoshi Nakamoto left behind is very advanced and can “achieve very high performance” rate using the BCH network.

Also Read: SLP Developers Publish Specs for a Unique Type of Non-Fungible Tokens

Btc.top CEO Jiang Zhuoer Cites the Advantages of the Bitcoin Cash Blockchain and Community

Jiang Zhuoer leads the Chinese mining pool Btc.top, which is one of the top SHA-256 mining operations by hashrate within both the BTC and BCH networks. On July 23, Zhuoer had a debate with Nchain’s Craig Wright, the man who claims to be Satoshi Nakamoto. The debate was hosted by Bitkan and started with a separate interview with Zhuoer for 20 minutes, and another private interview with Wright for the same amount of time. Then for another 20 minutes the two debated during a roundtable discussion that allowed them to interact freely. Wright’s stance was filled with BSV gigabyte block size talking points with pro-government Bitcoin themes as well. Zhuoer, however, explained in great detail why he thinks Bitcoin Cash (BCH) has three unique advantages and is following the path Nakamoto intentionally designed.

Btc.top CEO Highlights the Benefits and 'Golden Mean' of Bitcoin Cash
Btc.top CEO Jiang Zhuoer.

“I support BCH because BCH implements Nakamoto’s design for Bitcoin — And the title of the Bitcoin white paper is “A Peer-to-Peer Electronic Cash System”, hence, Bitcoin is designed as electronic cash,” Zhuoer responded when asked for the top three unique advantages BCH has compared to other mainstream cryptocurrencies. “The ultimate goal of Bitcoin is to become a world currency, a currency that everyone in the world can use, to bring monetary freedom to the world, so that the money in our hands is not inflated, not restricted by borders, and doesn’t get plundered.” The Btc.top CEO added:

To achieve this goal, Bitcoin needs to expand the block to accommodate more and more users — Nakamoto also made a clear plan to increase the block size.

Two Bull Runs Show BTC’s Weaknesses

Zhuoer insisted that in 2014, the Bitcoin Core (BTC) development team acted stubbornly and were against Nakamoto’s original plan. The disagreement got so elevated that it eventually led Bitcoin to split into two currencies, BTC and BCH, in August 2017. The Btc.top executive said the developments that followed indicated to him that BCH is correct for wanting to expand the block size limit during the dispute.

Btc.top CEO Highlights the Benefits and 'Golden Mean' of Bitcoin Cash
Zhuoer’s chart shows how BTC network fees and congestion started to rise during each bull run.

The hard evidence of this stemmed from the bull run in 2017 when the BTC mempool was congested with tens of thousands of transactions and network fees spiked to between $30-50 per transaction. These issues conflicted with Satoshi’s true vision, Zhuoer asserted, and he doesn’t seem to believe Segregated Witness and the Lightning Network will solve BTC’s problems. Zhuoer stressed:

The lightning network is also almost useless. During the price increase in May 2019, the same congestion appeared as it did previously in 2017 and the transaction fee percentage spiked significantly.

Btc.top CEO Highlights the Benefits and 'Golden Mean' of Bitcoin Cash

Bitcoin Cash Attributes: Direction, Community Spirit, and Infrastructure

Not only did Zhuoer speak on the subject, he also provided factual data and charts showing the BTC price increase pushing the network’s fees up during the last two price surges. Zhuoer predicts that the bull market that precedes the next halving will see BTC suffering from severe congestion. The pool operator does not believe the scaling concepts Core developers introduced so far will solve the problem before this timeframe. From here, Zhuoer highlighted the top three advantages that are unique to the Bitcoin Cash ecosystem:

  1. The right direction: Decentralized + large block, and a high number of users.
  2. Community spirit: Rational and pragmatic.
  3. Infrastructure: Layered design, onchain trading, and smart contracts that do not interfere with each other.

Zhuoer mentioned how BCH follows the Chinese mantra of “the golden mean,” which means the BTC block size limit is too small and network fees are costly during congestion. On the other hand with BSV, the block size is too big at 2GB and the chain will likely become like EOS, in Zhuoer’s opinion, with only a few centralized nodes. The golden mean of Bitcoin Cash is a path or middle way between the extremes of BTC and BSV.

Btc.top CEO Highlights the Benefits and 'Golden Mean' of Bitcoin Cash
Zhuoer believes that Satoshi implied that the block size could be increased without difficulty.

The mining pool CEO further opined that the developers and community behind BCH are rational and pragmatic because they don’t make “empty promises like Core.” Moreover, Zhuoer insisted that Core’s decentralization method is contradictory when the developers strive to make it so Raspberry Pis can run a whole node, but allow transactions to become expensive. Zhuoer also said that Ethereum suffers from this issue and “the capacity of BCH is larger than ETH.” Zhuoer continued:

BCH can carry the users who can’t stand the congestion of BTC and ETH, and BCH can gradually accumulate its own users to meet a healthy cycle.

Jiang Zhuoer is a well-respected mining pool operator among BCH supporters and many community members will recall his “Hash War” series of posts he wrote last November. At the time, the Btc.top CEO said that if Bitcoin participants have different goals then the protocol “should be forked.” “Let the market choose which one is right,” Zhuoer explained. In the second part of the series Zhuoer said:

Both parties believe that [Bitcoin] should become the global currency of 5 billion people, but the means used by [each development team] are different to achieve this goal.

After listening to Zhuoer’s words, it is clear that he thinks BCH triumphed over the BSV chain and is skeptical of BSV’s 2GB block size. He also called Wright and the BSV path “extreme” and the concept of locking the protocol back to the original 0.1 protocol is “ridiculous” in Zhuoer’s opinion.

Wait wait wait… how many orphaned blocks?!? pic.twitter.com/fiwZHGzBdF

— checksum0 (@checksum0) July 25, 2019

The Bitcoin Cash community seemed appreciative of the Btc.top executive’s statements, with one person saying they found his words to be “an extremely rational, informed, and unbiased dissection of the issues.” “Jiang’s full-length post (in Chinese) is worth reading, glad it’s been partly translated even with some errors,” another BCH supporter wrote.

The full transcript of Jiang Zhuoer’s post can be read here and you can also watch the debate between Zhuoer and Wright here using the Bitkan application.

What do you think about Btc.top CEO Jiang Zhuoer’s statements about the Bitcoin Cash (BCH) network? How do you feel about his opinions concerning other chains like BTC and BSV? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Btc.top, Jiang Zhuoer, Twitter, Bitkan, and Pixabay.


Are you a developer looking to build on Bitcoin Cash? Head over to our Bitcoin Developer page where you can get Bitcoin Cash developer guides and start using the Bitbox, SLP, and Badger Wallet SDKs.

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Bitcoin Mining Pool Founder of BTC.TOP: Lightning Network Will Not Fix Bitcoin Scalability Issues

Bitcoin has a problem with scalability. No one in its right mind you disagree with the fact that BTC gets too clogged when too many people used it.
Bitcoin Mining Pool Founder of BTC.TOP: Lightning Network Will Not Fix Bitcoin Scalability Issues

Bitcoin has a problem with scalability. No one in its right mind you disagree with the fact that BTC gets too clogged when too many people used it. Debates about this exist since 2014 and early 2018 was a great proof of that.

After the Lightning Network was launched, everybody thought that things would be smooth. However, some people seem to believe that this is far from the actual truth.

The Lightning Network, as you probably know, is an off-chain scaling solution for the Bitcoin network. It means that the transactions are made outside of the chain, on a layer 2 solution, in order to be faster and easier to manage. However, even with the LN growing up fast, Jiang Zhuoer, the founder of the BTC.TOPmining pool, does not believe that the Bitcoin Lightning Network may be the future.

Zhuoer has questioned whether the LN has the capacity to actually be a good scaling solution. He said that it did not have a viable user base as well, which would lead to its demise.

The Lightning Network Is Actually Progressing Well

However, statistics show that the LN, despite the crypto bear market and all the bugs and issues when it was launched, managed to thrive and actually become more popular.

At the moment, it has a total of 6,727 nodes, which is an increase of 17% when compared to the last 30 days. This when Bitcoin has stagnated in price between $3,500 and $4,000 USD. It also has a network capacity of 725 BTC.

The Bitcoin Lightning Torch initiative is also reaching mass adoption and increasing people’s attention on the LN. A branch of Fidelity Investments, one of the largest investment companies in the world, has also become of the first companies to receive the torch, which made the LN even more famous.

Lightning Network Is Not Enough For Zhuoer

Unfortunately, not even all this seems like enough for Zhuoer. He has affirmed that Bitcoin could not use something like a scaling solution that is made via a layer 2 and that the solution should be made within the boundaries of the network to be actually effective.

He affirmed that most of the funds actually flow from exchanges and directly, not via layer 2 programs. Because of this, the solution may even interesting for technical users but it will remain something that is not really a true solution if it is not widely used, despite its growth. When we consider how centralized exchanges work, his argument actually makes a lot of sense.

Zhuoer does not seem to believe that mining or the price of Bitcoin will be affected by the Lightning Network and that the number of users that it has is still too small. The LN, he affirms, is limited in scope and extremely centralized, which is also an issue. This way, it will simply not solve all congestion issues which will appear in the future as the adoption of the BTC network grows.

He expects a bull run during 2020 or 2021 that will clog the network again and maybe cause some more issues for the developers.

The founder of BTC.TOP was not alone in his criticism, though. Recently, Roger Ver, Gabriel Cardona and other people from the Bitcoin Cash community have attacked the LN while affirming that BCH will be better and that it can do more in a single day than the Lightning Network will do in its whole history. They also criticized it for having a poor user experience.

[New Crypto Rumor in China] Bitcoin Core Hopes to Stop “Halvening” of BTC to Add to Fixed Supply

When Bitcoin was originally created, Satoshi Nakamoto chose to make a limited supply of tokens with an entire whitepaper of other rules. One of the …
[New Crypto Rumor in China] Bitcoin Core Hopes to Stop

When Bitcoin was originally created, Satoshi Nakamoto chose to make a limited supply of tokens with an entire whitepaper of other rules. One of the other rules that is coming up again slowly in Bitcoin is a process called halvening, but Jiang Zhuoer of Bitcoin Core wants to get rid of that process.

Zhuoer, founder of the BTC Top crypto mining, said that his Weibo post on February 10th that the goal of the Bitcoin Core development team is to increase the current supply of Bitcoin, which is presently at 21 million coins. Furthermore, the halvening process that lowers the reward for miners is yet another aspect of Bitcoin that Zhuoer aims to change.

The developers at Bitcoin Core are dedicated supporters of the original protocols that Satoshi set up for Bitcoin. They have remained in favor ever since August 2017 when the Bitcoin network last forked.

Zhuoer said, “This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate.”

At the time, Zhuoer included that the development team would continue to encourage others to follow their lead.

He spoke on how he had known the plan for Bitcoin Core to establish these changes, though he had doubts about how the changes would actually be implemented. Luckily, the developers have been making fast progress on the change with experiments involving Grin and discussing the topic at Satoshi’s Roundtable.

The information is not often released to the public regarding what happened during Satoshi’s Roundtable, but founder of Fold, Matt Luongo, attended the meeting and reported back on Twitter. He stated,

“I was the guy that said we might have to one day raise the Bitcoin supply cap. Fight me.”

Much of the reason that Bitcoin Core developers are in favor of the increased supply cap and stopping halvening is due to the changes that it will make in the censorship resistance of Bitcoin, improving it substantially.

Zhuoer says that the current resistance to censorship makes it a requirement to have smaller blocks, which inhibits scalability. If this halving event continues even one more time, the revenue that miners make will dwindle, and fewer miners will remain active in their validation of blocks. With fewer miners, the speed of the whole network slows down and will become a potential target for 51% attacks.

The only way to keep miners profiting is with the stopping of the halvening process. However, if the fixed cap is removed and the halvening ends, investors that hold Bitcoin would likely see a substantial drop in their own holdings and profit. While Zhuoer has expressed that the changes to the Bitcoin network do not elicit any reaction from him, he was adamant about leaving the fixed supply where it is.

Considering that the halvening is still about a year away, Zhuoer does not think there will be security issues on the blockchain right now. However, there is much to be seen in the network’s changes after the halvening occurs, if at all.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 12th)

Bitcoin Core Aims to Solve Limited Supply and Bitcoin Halvening Problems

The bitcoin core development team is a big fan of the original software introduced by Satoshi Nakamoto which was in use before the Bitcoin …

Feb 12, 2019 11:45&nbspUTC

| Updated:

Feb 12, 2019 at 11:45&nbspUTC

By&nbspPrashant Jha

During the recent Satoshi roundtable event, the cry for increasing the limit of Bitcoin was addressed by Jiang Zhuoer, the founder of prominent cryptocurrency mining pool BTC. The founder wrote on his weibo page that the next goal for the Bitcoin core members is to increase the upper limit of 21 million total supply and halt Bitcoin halvening.

The bitcoin core development team is a big fan of the original software introduced by Satoshi Nakamoto which was in use before the Bitcoin blockchain hard forked into bitcoin cash.

Jiang noted,

“ This is a long-held plan for Bitcoin Core camp to increase bitcoin supply, and now they just try to know the bitcoin community’s response to it by sparking the debate,”

The Satoshi Roundtable Conference and Major Topics of Discussion

The roundtable conference which commenced last week was not covered by the media, however, apart from Jiang, Matt Luongo, the founder of Fold was another participant and the one who put out the question of increasing the limited supply cap.

Jiang in his post on weibo says that he was aware of the Bitcoin core team’s plans of working upon increasing the supply of total Bitcoin. However, he was not certain if this massive plan would be put to trial or executed.

The Bitcoin core team has made some significant progress in the initial testing phase where they have conducted a ‘no deflationary halving on the Grin experiment,’ After Matt came out on Twitter claiming that he was the one who initiated the increase of supply chain topic on Twitter, the whole crypto space broke into a debate on the same topic.

Jiang acknowledged the revelation made by Matt and called him the mouthpiece of the Bitcoin core development team in the round table conference.

What Could Be the Possible Impact of Increasing the Bitcoin Supply?

Jiang believes that increasing the supply limit of Bitcoin could help it in establishing the pioneer cryptocurrency as a true censorship resistance form of asset, which was the main aim behind the formation of Bitcoin.

In order to be a true censorship-resistant currency, the block size of the currency should be small and if the supply limit is not increased, the Bitcoin halvening would continue, in order to counter the scalability woes.

In the currently limited supply scenario, the 1MB block size limit might affect the mining revenues to a great extent. With lower block rewards, people might opt against the mining process and the ever-lingering bearish market only adds to the cause. Jiang is worried that, if the block reward continues to lessen people will eventually opt against the mining. The lesser hash rate input due to the scarcity of miners can expose the Bitcoin network to 51% attack.

However, Jiang is looking at the other side of the spectrum as well and thinking from an investor perspective, stopping the Bitcoin halving and increasing the fixed supply could dilute the value of investors holding.

Jiang concluded that he does not care much about the Bitcoin core developers initiative on the main Bitcoin network as long as they are not increasing the supply limit of Bitcoin cash.

Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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