10

A sidechain has its own blockchain which is coupled to the Bitcoin blockchain via a two-way peg. This allows tokens on the Bitcoin blockchain to be frozen in order to make new tokens available on the sidechain. In turn tokens on the sidechain can be either destroyed or frozen to move money back to the Bitcoin blockchain. Lightning Network is not a sidechain....


7

Craig Wright's statement is fundamentally incorrect. Craig Wright is often wrong; he spews nonsense and technobabble and doesn't seem to actually understand anything. First of all, the Lightning Network is not a sidechain. It is a network of off-chain payment channels. Since each channel is directly funded with Bitcoin and the transactions made in the ...


5

Several exchanges have published reports (OKCoim, Kraken) but Bitfinex is the only one I am aware of to offer real time proof of reserves with individual BitGo wallets. "The era of commingling customer Bitcoin and all of the associated security exposures is over" http://www.businesswire.com/news/home/20150603005462/en/Bitfinex-BitGo-Partner-Create-World%E2%...


3

In Fiat Interest and Inflation cancel each other and promote borrowing and thats a healthy thing, but bitcoin economy a borrower has to fight against deflation and interest, if interest rate gets lower to zero then lenders will have no incentive in lending At a basic level, the person providing the loan hopes to receive a small return (interest) for ...


3

While the other answers have done a good job of explaining why the statement is misleading, I want to point out that it is technically true. Again, what he said was: This occurs because schemes such as segregated witness allow for the introduction of fractional reserve systems into bitcoin. And that's true. You could, if you wanted to, build a fractional ...


1

First of all I don't think it needs to be so binary (bitcoin or nothing). Fiat and lending will likely co-exist along with bitcoin. Additionally, what if instead of creating a business based on debt, the business owner saved his money for a few years in the deflationary currency and thereby gains the needed funds and discipline to start a business? Debt ...


1

The concept of a money multiplier is meaningless in an unregulated environment. The money multiplier is, by definition, a legal limit imposed on the reserves banks must have.


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