For all the press Bitcoin has received, many contrarians are still attracted to sub-contrarians derived from the original contrarian. Many see Bitcoin’s glass as half-empty, instead of half full. That doesn’t apply to Coinbase head Brain Armstrong, who made news Monday morning with his Twitter commentary on the state of the digital currency universe.
Coinbase CEO: The rest are just a distraction
Coinbase just launched their new Bitcoin exchange. Plus, Coinbase has received a major money-shot of venture capital funding last month, which rang in at over $100 million, so 2015 has already been a huge year for Coinbase. Now Armstrong’s commentary expresses where his loyalties lie going forward.
Armstrong seems to be referring to “The Network Effect” of Bitcoin and it’s advantages over the rest of the digital markets. With the amount of time, venture capital, and over six years of experience, it will be near impossible for another coin to reach an equal footing with Bitcoin. Plus, commercial acquisitions like Dell & Microsoft only strengthen its position as the market leader.
The Sidechain Concept highlights the potential for features and capabilities not currently available on the Bitcoin block chain. Bitcoins can be “moved” from the block chain, where they would be “immobilized”, to the side chain, where they can perform different functions by the owner. The side chain itself can be a place for anonymous, untraceable transactions, or smart contracts. Then coins can be brought back to the block chain for future use, as needed.
Side chains are a fledgling idea that may become a hidden gem within the future of the Bitcoin technology, one of it’s many emerging functions within the ecosystem. It looks like Armstrong is a big fan of the concept and may someday invest in its growth. His company now has the capital to bring side chains to the forefront of the Bitcoin space.
What is more a part of the future of Bitcoin, sidechains or altcoins? Share above and comment below.