Healthy Competition for Bitcoin

I’ve been following the Bitcoin block size debate since Gavin’s 20mb block proposal. If you’re not familiar with the block size debate, this wiki article is a good start. During the debate, I’ve lost respect for quite a few of famous people. But let’s put it aside. Let’s talk about a healthy competition for Bitcoin. There should be more than one teams working on different implementation of Bitcoin Yes, both the software and the protocol. If there is only one implementation, who will have the authority to decide which features to include/exclude in Bitcoin software? Who should decide which rules applied/not applied to Bitcoin protocol? In the ideal world, there should be more than one implementations. Teams are freely to include/exclude whatever features they want. Users and miners will decide which softwares they want to run based on features set each implementation provides. And since teams are freely to code, companies can “lobby” (for example paying developers) for their desired features to be included into the software, if these features are not what everybody want. But, miners and users need to be well-informed in order to make decisions Yes, that’s why it is important to keep users/miners informed. Users/miners should be able to understand pros and cons of each features, and why they are included in each implementation. Therefore, it also important to have healthy discussion forums. Attack the implementation, not the people Remember, every developer/user/miner, regardless of their views are, is a person. We should assume they want Bitcoin to success. Respect every person even though (s)he does not share your view. If you don’t like a feature being included into the software, simply don’t run it. Let others know your view. Have a healthy discussion. Run what’s the best for you, or create a new one if you can’t find any

Using Bitcoin is not eliminating fees — unless exchanges are no longer required

Disclaimer: I’m not expert/investor in Bitcoin. I see Bitcoin as a great opportunity and great replacement for traditional money. Want to know more about Bitcoin? Pay this a visit: http://www.reddit.com/r/bitcoin Recently more and more people talk about Bitcoin: Very convenient, fast, low fees, etc. Sounds fun, and it’s true, if you only consider Bitcoin transactions alone. By design, it’s very fast, irreversible, secure, completely verifiable and very low fees. However, let’s consider several scenario to see if it’s really true: 1. Online Purchases With credit/debit cards, you don’t have to pay any processing fee. Merchants are the ones who pay processing fee to payment network. With Bitcoin, no matter small or large transactions, you will be the one who pay fees. 2. Money Transfer (Domestic) Almost all banks in US (and probably EU) have zero money transfer fee. For example, you can pay anyone without fee using Chase QuickPay, Wells Fargo SurePay, … With Bitcoin, as title said, unless exchanges are no longer required, for instance Coinbase, you have to pay 1% + 0.15 USD to convert money to Bitcoin, 0.1 mBTC for transfer, 1% + 0.15 USD to convert Bitcoin back into money. So total is 2% + 0.3 USD + 0.1 mBTC. Pretty much! 3. Money Transfer (International) International Money Transfer is a picky case. Most banks, payment transfer service like MoneyGram or Western Union charge a huge amount of fee. Processing time is from instant to 2-3 business days. Think Bitcoin transaction is free? You bet. I’ve seen many posts on Reddit with something like: “I’ve seen half a million to my friends around the globe. With 0.1 mBTC fee. Instant.” However, only 1/3 of this sentence is true, unless exchanges are no longer required. Yes, with Bitcoin, you can send virtually unlimited amount of money to