Bitcoin Transaction Fees A Problem

Sol Adoni
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Dr. Sol Adoni

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As I wrote in my FIRST PUBLIC OPINION on Bitcoin, I expressed my concern about Bitcoin as to it having a MAJOR PROBLEM of TRUST due to the CENTRALIZED CONTROL OF THE BITCOIN CORE DEVELOPMENT TEAM led by Gavin Andresen whom some say is the infamous Satoshi.

This is my SECOND PUBLIC OPNION on Bitcoin, and once again I am writing about how the BITCOIN CORE DEVLOPMENT TEAM led by Gavin Andresen is a PROBLEM for Bitcoin Currency Acceptance.

As my FIRST PUBLIC OPINION stated Bitcoin is portray by its fans and by Gavin Andresen and by the original Satoshi White Paper as a new DECENTRALIZED currency system, however as I pointed out in my FIRST PUBLIC OPINION on Bitcoin the major issue that big companies will have with accepting Bitcoin is its small development team led by Gavin Andresen who many believe is Satoshi.

Some also claim that Satoshi is just a covert CIA Project creation, and that the alleged public spat between Satoshi and Andresen that occurred in 2012 was manufactured.

In 2012 Satoshi who no one has claimed to have ever met (I’m not kidding) literally handed to Gavin Andresen the ALERT KEYS to the Bitcoin Network. It could well be the whole Bitcoin Project is a US Intelligence Project or perhaps MI5 or even Mossad, where Satoshi was the code name and Gavin Andresen the dupe used to now have a public face to Bitcoin.

That is why I called for a PUBLICLY FUNDED OVERSIGHT GROUP to oversee Bitcoin Core Development Team now led by Gavin Andresen the proverbial 3 Monkeys man (hear, see and say no evil) now running what you could call Bitcoin  Inc.  since he is the main man in Bitcoin Core development.

While I recommended PUBLIC FUNDED OVERVIEW of Gavin Andresen and his Bitcoin Core Development team in my FIRST PUBLIC OPINION to ensure PUBLIC TRUST in the currency and more importantly BIG COMPANY TRUST to ensure stability of the Bitcoin Core to ensure it has no hidden viruses, there is a 2nd major problem in Bitcoin I will now address that once again is connected to Gavin Andresen and his CENTRAL CONTROL of Bitcoin.

The Bitcoin sales pitch is clever and repeated by all the minions using it and promoting it that have little clue as to what cryptography or low level computer programming is. The pitch is no fees to recieve and no chargebacks to merchants, that gets the ear of any merchant.

Merchants are used to paying high fees called transaction fees to credit card processors or BANKS to take credit card payments for their goods and services.

Merchants using credit cards also face the major fraud problems of credit cards CHARGEBACKS often used by the consumer to scam a legitimate merchant from his payment. Sure a minor amout of merchants are fraudsters themselves but high fraud merchants are quickly shut down and blacklisted by the major credit card processing services. Most chargebacks are actually customer abuse of merchants.

Merchant hearing the Bitcoin sales pitch of NO CHARGEBACKS and NO FEES often get major interest in Bitcoin and decide to take it in trade due to NO FEES and NO CHAREGACKS the sales hooks of Bitcoin.

Upon falling for the Bitcoin sales pitch, the merchant then usually uses a merchant service company to take Bitcoin such as Coinbase and Bitpay and then pays a fee to exchange the new currency for the fiat currency they are used to and that fiat currency is usually ‘swept’  (transferred) into the normal  bank account the merchant has used for years on a daily basis so the Merchant has little if any risk in the volatile currency that Bitcoin has become.

Instead of installing the Bitcoin Core on corporate servers and becoming in essence their own Bitcoin Bank, most merchants choose to use Bitcoin service providers that then earn fees turning Bitcoin into fiat for deposit in regulated banks. So the new merchant service providers not regulated by banks earn fees turning Bitcoin into Fiat Currency to deposit.

While for almost 60 years businesses have born the transaction fees of credit card processing, there is no transaction fees in the Bitcoin Network to merchants until they decide to change their Bitcoin into fiat and deposit into an old world fiat banking system.

When a consumer loaded with Bitcoin that they usually paid a SERVICE FEE on to even acquire goes to a Bitcoin merchant THEY PAY a small transaction fee to the Bitcoin Network to see their transaction propagated within the Bitcoin Network nodes.

Now here is the PROBLEM, just like Gavin Andresen is basically in control of Bitcoin Core Development, Gavin Andresen is also in charge of trying to fix a temporary FEE for senders of Bitcoin to PAY THE NETWORK so the Network that is busy MINING for Bitcoin will accept the request of the consumer to distribute or propagate the consumers payment into the Networks Public Ledger or Blockchain.

Now here is the PROBLEM that I have with GAVIN and the Bitcoin Community as a whole, yes miners need an incentive to handle transactions, so that is the area where a legitimate fee to miners was proposed by Satoshi, who may be Gavin Andresen or who may be a CIA or MI5 or even Mossad Project Name. That Bitcoin transaction fee is controlled by a few Bitcoin Core Developers led by Gavin Andresen.

Right in the beginning of the white paper of Satoshi (a possible intelligence code project code name, and oh Satoshi means WISE ONE in Japanese) explained how Bitcoin could fuel LOW COST CASUAL TRANSACTIONS with almost no cost to the parties and do the transaction outside of centralized banking controlled systems that have high transaction fees.

Since 2012 when Satoshi and Gavin allegedly parted ways in a very public spat about control of ALERT KEYS within the Bitcoin Core, the so-called decentralized currency of Bitcoin has been in essence CONTROLLED by one person who is Gavin Andresen that rules over a small group of Bitcoin Core developers to decide what changes are made to the Bitcoin Core and ALSO what is the new TRANSACTION FEES for the Bitcoin Network are.

So my FIRST PUBLIC OPINION  paper on Bitcoin pointed out the centralized control of the Bitcoin Core was potentially prone to abuse and I suggested a properly funded public and corporate overseeing group to put Gavin Andresen and his Bitcoin Core development team into a PUBLICLY CONTROLLED enviornment IF BITCOIN is to be trusted fully by big corporations around the world and grow fully into a potential new global digital currency unit. What I understand about currency is, is any currency is only as good as its public trust factor is, and when an educated person looks at the CONTROL of Bitcoin Core they see too much power in the hands of very few players.

So now the thrust of my SECOND PUBLIC OPINION on Bitcoin (this article), is about the setting of current Bitcoin Transaction Fees controlled basically by Gavin Andresen. That tight control is a major problem in my OPINION. Just like no public overseeing of Bitcoin Core Development also led by Gavin Andresen is a PROBLEM too.

Since a minimum acceptable Bitcoin unit transaction fee is woven into new releases of the Bitcoin Core set by Gavin Andresen’s Bitcoin Core development team, which is PAID BY SENDERS of Bitcoin transactions which as Bitcoin Currency grows the Senders are  more and more likely to be PUBLIC CONSUMERS using the currency to buy goods and services from Bitcoin Merchants, these constantly changing minimum Bitcoin transaction fees paid for by the SENDERS of Bitcoin is constantly changing to try to keep the fee as small as possible without the fee becoming what is known in the Bitcoin community as BITCOIN DUST, a fee so small that the Bitcoin Network IGNORES the transaction.

Since the value of the Bitcoin coin used in Bitcoin Transactions has skyrocketed the Bitcoin unit for the Bitcoin transaction fee has had to become a smaller and smaller fraction of a Bitcoin Coin. The reason is simple, older Bitcoin transaction fees based on Bitcoin fractions if not adjusted by the Bitcoin Core developers would by now be very high if it had not been adjusted.

So the public face of Bitcoin Core development who is Gavin Andresen is seen as a person trying to determine with no overseeing by the PUBLIC what is the least amount the Bitcoin transaction fee should be to allow the Bitcoin Network to propagate Bitcoin transactions.

Remember, Bitcoin is portrayed as decentralized currency unit in its sales pitch spread by adopters of Bitcoin, yet the Bitcoin Core is in essence controlled by a small group of Bitcoin Core developers led by Gavin Andresen, and that team also sets the new Bitcoin Network Transaction fees. Such a centralized control of Bitcoin Core development is as far from a decentralized currency system as one could get IN MY OPINION.

While I have been RETIRED for years, I do sit on boards of various International Non-Profit Organizations in honorary positions on such boards.

In five decades (1970’s to Present)  of IP (Intellectual Property) creation and acquisition  of everything from software, to books, films, videos and music as well as art and rare books, plus the acquisition of Domain Name rights  as well as digital content creation rights and management, the various International Non-Profit Trusts I founded years ago now control a vast catalog of IP digital asset rights that are well suited to the Bitcoin Currency model.

New companies that I do not operate, that license the operational distribution rights to so-called digital rights catalogs managed by these aforementioned international non-profit trusts are now trying to create new digital distribution networks utilizing primarily Bitcoin.

Since these new companies offer  very low purchase cost fees to the PUBLIC, such low cost fees to the PUBLIC to consume or purchase such digital goods cannot use traditional banking services since the minimum merchant banking fees are way too high, since they average often in the .35 to .45 cent minimum transaction fee range.

One such digital goods distribution channel is trying to offer costs as low as .10 cents to the public so all of the world can be able to purchase digital goods at these low consumer costs only available via a potential digital currency and network as the one envisioned in the white paper of Satoshi.

Thus far, the beta transactions of these new digital distribution networks with .10 Cent costs to the PUBLIC CONSUMER are using the Bitcoin Currency and Network to conduct these low cost transactions. The initial beta transactions have resulted in Bitcoin Network transaction fees avargeing .12 cents or more than double the cost of the digital goods being distributed. So a .10 CENT digital goods transaction becomes .22 CENTS to the consumer.

I have read various articles in which Gavin Andresen is quoted as saying .02 Cents is the goal of the Bitcoin Network as far as a Bitcoin Transaction Fee is concerned, however recent beta transaction tests are showing that the Bitcoin Network transaction fee is in reality .12 Cents which then doubles the cost of the low cost digital goods being distributed in the beta trials of these new digital goods networks that will not use traditional merchant processing such as Visa and Mastercard due to old world banking merchant fees of .35 to .45 cents per transaction.

So to the overlord(s) of the Bitcoin Network (aka the Bitcoin Core development team led by Gavin Andresen),  read Satoshi’s White Paper and you will find the VISION of Satoshi in how low cost CASUAL TRANSACTIONS outside of 3rd Party Trust Networks such as old world fiat currency banks was at the forefront of the whole ideal of Bitcoin as a new digital currency system, as proposed by Satoshi in his original White Paper on Bitcoin.

Bitcoin is in the novel position of dramatically changing how low cost digital goods are transacted in the world, such distribution is now controlled by a few big companies and the old world banking systems. We all know how .99 cents is the barrier in most digital transactions today, that barrier is due to merchant fees of 3rd party trust institutions known as banks.

So if the Bitcoin Network that has CENTRALIZED CONTROL now, since the real control is via the Bitcoin Core Development group, is to live up to the ideals of the Satoshi White Paper the Bitcoin Network Transaction fees must be LOW, so low that even .10 cent transactions can function in the Network without having transactions fees doubling the costs to the consumer.

If the Bitcoin Network can operate with say .02 Cent transaction fees then whole new digital goods distribution networks will appear to legally offer digital goods at .10 CENT costs to the public.

Most of the world now cannot have a legitimate banking account nor a merchant account and a real Visa or Mastercard in old world banking cartels since most of the world is viewed as developing and a risk to western banks.

That is why the user base of traditional banks is such a small fraction of the overall world population.

If the Bitcoin Network realizes that most of the world earns minor sums compared to developed nations (Example: average wage in Indonesia is around $10.00 USD a WEEK), then the real growth of Bitcoin is not from the wallets of Venture Capitalists in the western nations, but by the mass adoption of Bitcoin as a digital currency by the huge percentage of the world that now has internet access only via internet cafes and using mobile devices such as mobile phones and tablets.

Putting Bitcoin Wallets into BILLIONS of mobile phones and tablets in developing nations by having new digital goods distribution networks using 10 CENT Digital Goods transactions will allow a GLOBAL ADOPTION of Bitcoin currency literally overnight.

Another way to fuel rapid adoption of Bitcoin by the world is to make Bitcoin Core trustworthy so existing digital diribution channels might adopt Bitcoin to also transact LOW COST DIGITAL GOODS which is exactly what the developing nations need, since 10 CENTS is to a developing nation consumer more than even .99 Cent digital transactions is in value to western wallets that have adopted .99 cent digital good transactions en masse.

In summation, my FIRST PUBLIC OPINION on Bitcoin suggested publicly funded oversight of the Bitcoin Core development team and Gavin Andresen.

My SECOND PUBLIC OPINION explains that existing transaction fees in the Bitcoin Network are too expensive for mass adoption of new digital goods transactions by developing nation consumers.

Low cost digital goods can quickly fuel Bitcoin into a truly global currency enjoyed by ALL THE WORLD not only wealthy western wallets.

So Gavin Andresen .02 CENT transaction fees are what the Bitcoin Network needs to be able to accomplish this goal of the Satoshi White Paper for Bitcoin Network to be able to handle low cost casual transactions around the world. This type of transaction could fuel world adoption of Bitcoin via LOW COST DIGTIAL CASUAL TRANSACTIONS exactly as the first few paragraphs of the Satoshi White Paper expresses.

That is my .02 CENTS on the Bitcoin Transaction Fees so Bitcoin can become what it is meant to become a GLOBAL CURRENCY UNIT that allows the WHOLE WORLD to enjoy low cost digital transactions as envisioned by the White Paper of Satoshi.

Unlike the shadowy figure of Satoshi, I am a real person, who over the years some have claimed to also be a CIA Project. I am a living breathing human being and not hiding behind any CIA project as Satoshi may be.

I have been known as SOL ADONI for around 20 years now, it is the abbreviation of my religious name adopted by me in 1995.

It is how I am known in the business world to thousands of clients.

I AM REAL AND NOT CONNECTED TO THE CIA

Can you say that Satoshi?

Is Gavin Andresen the person behind Satoshi?

Is Gain Andresen merely a person used as a pawn by the CIA or MI5 or Mossad in yet another intelligence project?

For the Bitcoin Project to be accepted by the world and big companies, as my FIRST PUBLIC OPINION on Bitcoin stated, a PUBLIC OVERSEEING GROUP of over 100 respected computer experts needs to step in and publicly review the actual Bitcoin Core and make public suggestions as to hardening it from potential viruses and hackers and create a Bitcoin CORE is safe enough and robust enough that the business world can entrust it with TRILLIONS of dollars of potential transactions each year.

My SECOND PUBLIC OPINION on Bitcoin, this article,  explains why .02 CENT transactions are needed to spead Bitcoin quickly and globally to developing nation consumers via widely accepted digtial goods such as music, books and videos.

SOL ADONI

Not Satoshi

Not CIA/MI5/MOSSAD

www.SolAdoni.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dr. Sol Adoni

Books - Music - Films - Videos - Consults

Media Requests 

Books by Dr. Sol Adoni


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