On episode 30 of the CoinGeek Weekly Livestream season three, Kurt Wuckert Jr. answered the viewers’ questions about BSV blockchain and everything happening in the blockchain space.
Is locking Bitcoin a good idea?
Wuckert begins by addressing a topic that has been ongoing in the BSV blockchain community since it was addressed in a recent CoinGeek Conversations episode: locking up your Bitcoins.
Right off the bat, Wuckert says this is not a good idea. Price discovery does not occur as a result of scarcity, he says. In the digital currency space, it appears due to market manipulation on bucket shops (centralized exchanges like Binance), who often front-run, countertrade customers, and collude with each other to fill their pockets.
In the real world, price is an agreement between a buyer and a seller. On these digital currency exchanges, it’s just paper trading, and no real coins are swapped at any stage. In many cases, exchanges must acquire coins when a user wants to withdraw them. See Dr. Craig Wright’s blog post on “Banking Old Wine in New Bottles” for a more in-depth explanation of this.
Given this, locking all the coins up wouldn’t change anything, as they are only paper trading. Furthermore, locking coins up reduces the velocity when Bitcoin was supposed to increase it, making payments, particularly micropayments, easier. Locking coins up is just hoping someone else comes along and makes your coins more valuable.
Will CoOM Battles be the first app to use BSV blockchain as plumbing?
Wuckert says it could be. He likes that they have raised capital on both sides (BSV and BTC), and he thinks it makes good business sense. Plenty of potential players have BSV, BTC and BCH, and they may decide to spend their BSV playing the game just because they have them. He really likes what CoOM Battles has done.
Is there a legal way to avoid Capital Gains Tax when selling BSV to pay bills?
Wuckert replies that the tax code in the United States is vague and ambiguous, and there’s no way to be sure. It’s complicated; everyone thinking about this should be careful, and it’s always advisable to consult with an accountant in these cases.
Any speculation regarding COPA and the halvening? What will be coming? Tidal waves or nothing?
Wuckert is excited about the COPA v Wright case. He thinks it may be the culmination of a monolithic legal strategy. It happens in January, and the halvening happens in February. Many exciting things could happen between now and then.
He adds that the U.K. courts’ work is different from the U.S. ones. Both sides get to share their evidence behind closed doors, and if Dr. Wright shows irrefutable evidence that he is Bitcoin’s inventor, COPA could settle before it goes to court. We could also see exciting leaks between now and then. On the other hand, the trial might not be a slam dunk, and judges could need months to determine the outcome.
What’s the most underrated use case for blockchain that nobody talks about?
Wuckert thinks it’s the bigger picture—the entire internet can run on Bitcoin, which will have massive second-order effects. Just as Amazon (NASDAQ: AMZN) used to run on the internet and the internet now runs on Amazon, the same thing can happen to Bitcoin. Every byte of data can be monetized, and a concept like Metanet can be extremely disruptive. Bitcoin will become everything, just as the internet did.
Are we finally going to see something real with Teranode early next year?
Wuckert points out that the concept of Teranode predates the BSV ticker. It was talked about back in the BCH days. He acknowledges that it has been “coming soon” for years, but while he doesn’t know specifics, the fact that the BSV Blockchain Association and nChain both have teams now. Recent developments suggest they’re much further along than some may think, and Teranode could be imminent.
Define Web 3.0 in one sentence. What’s your favorite application?
Wuckert says it is the internet where users can own and control data instead of facilitators. As for his favorite app, he would have said Twetch, but he doesn’t think anyone has done it really well yet. There are many significant developments at the protocol level, but the killer user-facing app is still to come.
What’s the future of NFTs? Can a blockbuster movie one day become an NFT?
Yes, it absolutely can. Wuckert says that all data probably shouldn’t live on Bitcoin, but miners can distribute it through an overlay network. The future of NFTs is about tagging value, he says. Digital ownership of all kinds of things, such as cars, would be valuable on the blockchain.
What’s the biggest myth people believe about Bitcoin?
There are many, including the idea that coins exist in any form other than electrons. However, the biggest myth of all is that Bitcoin can change. In Wuckert’s view, it has a fundamental definition, and voting on protocol changes does not mean Bitcoin has changed.
To hear Wuckert’s view on the recent Joshua Henslee criticisms, the direction of the space in general, the role of private businesses in the BSV blockchain, and more, check out the livestream linked above.
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New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.