Trends in Technology

Is Bitcoin Diamond the New ‘CryptoMessiah’ or a Passing Fad and China’s Central Bank is Predicting the Death of Bitcoin but Will That Actually Happen?

December 4, 2018 by Bobby J Davidson
Read similar articles in: Banking Technology

China’s Central Bank Recently, Bitcoin Diamond—a bitcoin fork or spinoff, was launched and soon it had tongues wagging. While some people believe bitcoin diamond to be the new cryptocurrency ‘Messiah’, other see it as nothing more than a passing fad. So, who should you believe? We’ll discuss the finer points of this new Bitcoin and let the final judgement to you. Also, China’s central bank is predicting the death of bitcoin, but will that actually happen? We find out!

The Privacy Allure of Bitcoin Diamond

While there are many pros of Bitcoin, there are several cons as well—with a lack of privacy on top of that list. When you use Bitcoin, you have no anonymity or privacy. Perhaps, this is the biggest problem faced by Bitcoin users today and one of the reasons they have started to look for ‘more private’ alternatives. Bitcoin Diamond may well be the answer to their prayers.

The first and foremost thing that Bitcoin Diamond aims to do is ensure the privacy of users—or at least that this what this fork’s developers claim. They also claim to have found a way to encrypt the balances and transaction amount of all their users. Sounds like Monero? It may well do, but the implementation of this Bitcoin fork isn’t even half as competent as the aforementioned- open-source cryptocurrency.

Claims of ‘Faster’ Transactions

Owing to the 8MB block size limit it boasts, Bitcoin Diamond is claiming ‘faster’ transactions that several other Bitcoin forks. In this regard, BCD has copied some code of another Bitcoin spinoff, which is Bitcoin Cash. Since several reasons deem it an unviable long-term solution, the effectiveness of on-chain scaling will always be up for debate. However, till there is a more future-oriented solution, on-chain scaling can help reduce the congestion on the network. But, Bitcoin Diamond further increasing the blocks capacity is unlikely to happen.

A Cryptocurrency Already Embraced by Exchanges Around the World

Yet to be launched, Bitcoin Diamond has already received the backing of several exchanges around the world—thirty-three to be precise. This is one of the biggest indications that BCD is much more than just a passing fad. Not only have these exchanges embraced the new fork, they have also announced its futures trading. To add to this, Bitcoin Diamond will be supported by at least six wallets including the likes of ATOKEN, Coldlar, Bitpie, and BitGo.

Is Bitcoin Diamond the Future of Cryptocurrencies?

It’s too early to say in favor of this or against it. Only time will tell whether BCD is the new ‘CryptoMessiah’ or just a passing fad. All we know right now is that Bitcoin Diamond ensures privacy and anonymity of its users, offers faster transactions, and has been embraced by many exchanges around the world. Some issues with this Bitcoin spinoff have also been highlighted above. With that, we leave it to you to decide whether Bitcoin Diamond is the future of cryptocurrencies or just a passing fad!

China’s Central Bank is Predicting the Death of Bitcoin but Will That Actually Happen?

Not too long ago, bitcoin markets were dominated by China. In fact, there was a time when 90% of the bitcoin trading activity happened from within the country. However, things have changed drastically today. In September last year, China’s central bank ordered cryptocurrency exchanges to not allow the locals to trade in the currency and even banned initial coin offerings (ICOs). But, that isn’t how China ended its brief but overwhelming romance with cryptocurrency, it ended it by predicting the death of bitcoin—the most popular and widely used cryptocurrency today.

According to Pan Gongsheng—a person currently serving as one of People’s Bank of China’s or PBoC’s deputy governors, bitcoin will experience death soon. Speaking at a financial event in China’s biggest city Shanghai, Gongsheng explained the bank’s decision to crackdown on initial coin offerings (ICOs) and exchanges dealing in cryptocurrencies.

As reported by the Chinese media, Gongsheng said that his country would have accounted for more than 70% of all ICO fundraising and bitcoin trading happening today if China’s central bank had not cracked down on ICOs and exchanges dealing in bitcoin and other cryptocurrencies a few months ago. And, he believes that had that happened, the country would have been in a real fix today.

In his speech, the deputy governor cited a column by Éric Pichet—a professor and economist who writes for La Tribune—a French weekly financial newspaper. In the column cited by Gongsheng in his speech, Pichet advocates against cryptocurrency by writing that a global ban from governments or a blockchain hack will trigger the end of the digital currency

In his speech, Gongsheng makes his views on bitcoin in particular and cryptocurrency in general quite clear. Not only has the deputy governor predicted the downfall of bitcoin, he has also predicted its death. To prove his, Gongsheng cited the column of Éric Pichet in La Tribune and made references to the John Maynard Keynes—a British economist.

According to Gongsheng, Keynes has advised against cryptocurrency buying or trading as the market has the potential to remain illogical longer than one can remain creditworthy. So, the only sensible left to do is stay inactive in the cryptocurrency world and wait for the inevitable death of bitcoin.

What is the Ground Reality of Bitcoin in China and Elsewhere?

As mentioned above, Gongsheng claimed in his speech that China’s share in the bitcoin share was 90% a few months ago. However, this claim of the deputy governor is invalidated by cryptocurrency researchers, investors and analysts.

At the end of 2016, PBoC, asked the country’s exchanges dealing in cryptocurrencies to stop zero-free trading. This triggered the collapse of China’s share in the bitcoin market which to just 7%. But, even before the crackdown, China was never the biggest bitcoin player.

In fact, it was the 5th largest market behind the U.S, Japan and a couple of European countries. And, to add to this, after China cracked down on them, the cryptocurrency exchanges in the country moved to Hong Kong. So, the imminent death of bitcoin in China or elsewhere is deluded thinking to say the least!

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