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Ted Bauman Weighs On The Impact Of Hard-Forking The Bitcoin Technology

Posted on 13 December, 2017 in Entrepreneur

Ted Bauman has been registered as a Banyan Hill Publisher for the past four years. He’s a regular feature of the Alpha Stock Alert, and The Bauman Letter financial investment newsletters. Ted is on record as having outperformed the S&P 500 index for more than ten times in his career.

Ted’s breadth of experience in building successful companies has made him an authority in matters on, retirement investment planning, and wealth management and in recent times, cryptocurrencies. Ted Bauman recently penned an insightful piece on how investors ought to approach the bitcoin revolution taking place today. Here’s a recap of that post.

Bitcoin Vs Visa

Ted Bauman starts by highlighting a major flaw that user’s face with bitcoins. The accomplished investor paints an image of a bitcoin user in the year 2020 who has to wait an entire four minutes to finally receive a payment confirmation phone alert. Ted acknowledges that bitcoins are extremely safe and secure for end-users thanks to their unique decentralized approach on tedbaumanguru.com. The fact that bitcoins exist in millions of anonymous computer networks all over the web, makes it nearly impossible for the government to track and manipulate everyone’s favorite cryptocurrency, bitcoin.

Terrible Delays

Ted Bauman’s actually delved into the poignant concern of bitcoin mining in the Bauman Letter. The entrepreneur reminds the reader of just how costly and time-consuming it is to mine a single bitcoin. The mining process must be completed for the bitcoin transaction to be successful. It takes around 6.5 seconds to mint a new coin. A typical bitcoin transaction takes roughly 10 minutes to complete.

That’s in stark contrast with the mind-blowing transaction processing speeds of alternative payment firms like Visa. The latter has the capacity to complete an estimated 24,000 transactions per second and it currently processes up to 150M transactions, daily.

SegWit2X

According to Bauman, if bitcoin fails to address the lengthy transaction times, it is indeed headed for utter disaster as an emerging currency. Consumers will still clamor for Visa services for speed and convenience’s sake according to tumblr.com. Ted advises for the founders of bitcoin to either increase the sizes of their bitcoin mining blocks or reduce the data found on a single bitcoin.

Hard-Forking

In fact, many miners are nowadays adopting the SegWit2X technology to help speed up the transaction rates by halving the data in every bitcoin block. That approach, however, introduces new flaws and vulnerabilities in the bitcoin transaction. Ted believes that the only thing that can save this crypto is by initiating a hard fork. Hard forking involves creating a new bitcoin blockchain that has an increased block size allocation of 8MBs. After the hard fork, bitcoins will then be traded as Bitcoin Cash.

Continue reading about Ted Bauman’s warnings and skepticism as far as bitcoin goes here.

Find more about Ted Bauman: https://plus.google.com/103297567383363792240

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