Ari Paul on Bitcoin

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Ari Paul is the co-founder and CIO of BlockTower Capital.

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Created by the pseudonymous Satoshi Nakamoto in 2009, Bitcoin is a peer-to-peer electronic cash system.

Finance and payments

Bitcoin reviews by Ari Paul

🔑 3 positive | 💩 0 negative

2019

  • 🔑

    Bitcoin is bigger than the Bitcoin blockchain.

    Bitcoin (BTC) the asset is tracked on the Bitcoin blockchain and transferred over the Bitcoin network (usually). If this was the end of the story, it would be a problem, since the Bitcoin blockchain is first generation technology with limited throughput and features.

    But BTC can be used on other protocols and networks. The Lightning Network is a layer 2 protocol that allows for numerous fast and cheap BTC transfers that settle to and are secured by the Bitcoin network. People may also use sidechains, drivechains, and other L2 or L3 solutions.

    [This] means that BTC is unlikely to be rendered obsolete by competing protocols that offer incremental improvements. BTC users can access those features or greater bandwidth by using BTC on other protocols like LN.

    Ari Paul, Co-founder and CIO of BlockTower Capital

    2019-02-08 | Full Review

2017

  • 🔑

    Bitcoin is a worse than mediocre payment system. Redundantly verifying small transactions tens of thousands of times is wasteful.

    It derives no value as a payment system except as novelty; if a cryptocurrency is used for coffee, it will be optimized for that purpose. Expect DAGs or other consensus systems, not a horribly inefficient PoW blockchain. PoW blockchain is great for censorship-resistance.

    Bitcoin as a payment system is already obsolete and third rate. As a censorship resistant store of value, it has immense value.

    Ari Paul, Co-founder and CIO of BlockTower Capital

    2017-09-04 | Full Review

  • 🔑

    Bitcoin has a community that is mostly committed to stability. To the majority of Bitcoin users and developers, Bitcoin is IBM, it’s Lloyd’s of London. This makes technical innovation at the protocol layer very difficult in Bitcoin, but also lends it a great deal of stability. By “stability”, I don’t mean price stability, but rather protocol stability. If I buy 1 bitcoin today, I can be fairly confident that in 5 years I’ll own pretty much the same thing.

    Ari Paul, Co-founder and CIO of BlockTower Capital

    2017-04-17 | Full Review

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💩

Big picture: I have nothing against Ripple or XRP. It's not a scam. It may have a killer use case. Just need to acknowledge that more than 50% of XRP is owned by one company, and most trusted nodes are run by that same company, and some assets on ledger can be frozen.

Ari Paul, Co-founder and CIO of BlockTower Capital

2017-12-31 | Full Review

🔑

Monero and BTC are the only two cryptocurrencies I've ever publicly recommended for investment. I'm a big fan of the XMR devs and the Monero ethos.

Ari Paul, Co-founder and CIO of BlockTower Capital

2018-05-17 | Full Review

💩

Wasn't NEO just shot in the knee by the Chinese government? Why would you want to own an ETH clone facing regulatory destruction?

Ari Paul, Co-founder and CIO of BlockTower Capital

2017-09-04 | Full Review

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🔑

I don't have a view on what the ultimate value of a Bitcoin will be nor do I care. I am interested in Bitcoin plain and simply because I believe it can be and possibly will be the financial and transactional protocol for the global Internet.

2013-11-24 | Full Review

🔑

If something is to displace Bitcoin now, it will have to have sizable improvements and it will have to happen quickly. Otherwise, this network effect will carry Bitcoin to dominance.

2014-01-21 | Full Review

🔑

Bitcoin takes powers from the central actors and returns it to merchants and consumers, savers and borrowers. Bitcoin brings back some pseudonymity in the transactions, and can be irrevocably traded like cash. And finally, it points a way towards a single currency – it is a bug, not a feature, that we have multiple global currencies with exchangers and transaction fees in between.

2013-11-07 | Full Review

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