Bitcoin payment processing startup OpenNode has rejected a $1.5 million investment gesture made by Roger Ver.
The company, which exclusively supports the Bitcoin payment protocol, confirmed that its vision of a better and more open financial system could not be achieved with Bitcoin Cash, adding that it would spend 100% of its resources on Bitcoin and its second-layer payment solutions instead.
OpenNode aims to process bitcoin transactions in real-time to boost the digital currency’s adoption among enterprises and businesses. It supports Lightning Network, a second-layer payment protocol launched to confirm Bitcoin transactions away from the main chain. The efforts led OpenNode to raise $1.5 million in seed funding from investor Tim Draper.
Ver, who believes that Lightning Network is an inferior solution to solve Bitcoin’s scalability issues, attempted to match Draper’s bid. He confirmed that he would invest $1.5 million into the OpenNode project if they readily accept Bitcoin Cash instead of Bitcoin as their only payment processing protocol. Excerpts from his statement:
“I don’t need one share whatsoever [for my investment]. All I require is [OpenNode] to work on payment processing of Bitcoin Cash, the version of Bitcoin that can actually scale to become the money for the world.”
Ver predicted – through a Moore Law-enabled algorithm – that it would take close to two centuries for the world to board the Lightning Network solution. But in the case of Bitcoin Cash, the time would reduce to just shy of 50 years.
“Bitcoin cannot become the money for the world in a reasonable amount of time with its block size limited to 1 megabyte to 4 megabytes,” he added. “Even with Schnorr’s signature, you are still looking at far more time for BTC to be ready for the world than you are with Bitcoin Cash thanks to Moore’s Laws.”
The community was quick to respond to Ver’s claims against Bitcoin, with many bashing him for twisting mathematics to suit his agenda. CryptoTesla on Twitter argued that the Bitcoin Cash CEO was ignoring the fact that Bitcoin could scale in the next 100 years while being progressive about his project.
“Have these people never heard of Moore’s Law? On top of this, he assumes BTC will never have a Block Size increase in over 100 years? In summary: his numbers for BTC have no progress in them while his numbers for BCH have more progress than the growth we saw last decade.”
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Last modified: May 20, 2020 1:02 PM UTC