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Five gems from Van Valkenburgh’s testimony at a congressional hearing

The title of the Congressional hearing is hilarious”America Is On ‘Fire:’ Whether the Crypto Frenzy Will Lead to Financial Freedom and Early RetirementFinancial or financial ruin?“She is the gift that keeps on giving. NewsBTC already analyzed There are some aspects to this, but Peter Van Valkenburgh’s testimony deserves an article in its own right. research director coin

A coin is a unit of digital value. When describing cryptocurrencies, they are created using bitcoin technology and have no other value, unlike tokens, which have the ability to create software with them.

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” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>Coin The Center has got many important ideas on record, and we will better register and remember them.

The introduction of the previous article still stands:

The US Congressional Monitoring and Investigation Subcommittee held a hybrid hearing on bitcoin and cryptocurrencies. The institution has partnered with Alexis Goldstein, director of financial policy for the Open Market Institute, Sarah Hammer, managing director at the Stevens Center for Innovation in Finance, Peter van Valkenburgh, director of research. coin

A coin is a unit of digital value. When describing a cryptocurrency, they are created using bitcoin technology and have no other value, unlike tokens, which have the ability to create software with them.

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” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>Coin Center and others.

Related Reading | New 2021 FATF crypto guidelines largely labeled as warrantless surveillance

Since we’ve already worked on NewsBTC and covered rep Brad Sherman’s ridiculous statements, it’s time to give the mic to someone more qualified and knowledgeable. Records reflect that full video of the entire hearing is not available at the time of writing. We will base our reports on everything we find on the open internet.

What do we know about the testimony of Peter Van Valkenburgh?

Luckily for us, the documentation of bitcoin is the best part of Van Valkenburgh’s presentation. research director coin

A coin is a unit of digital value. When describing a cryptocurrency, they are created using bitcoin technology and have no other value, unlike tokens, which have the ability to create software with them.

” read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>Coin The center sets everything apart by explaining why and how the bitcoin network is censorship-resistant.

“… we have the advantage of knowing everything that the peer-to-peer ledger tells us. It is shared and open, it is not a proprietary standard of any corporation. And the peer-to-peer ledger shows us that it is How much work are miners doing to make sure that transactions happen in blocks and that they are not censored by some third party or some government that wants to force certain transactions or block certain transactions. It is this lively competition among miners that guarantees that the miner cannot form a cartel, and chooses to systematically exclude certain individuals from this financial system.

To sum up this idea, let’s quote Van Valkenburgh’s own “Understanding bitcoin’s energy use“Paper.

This competition is healthy because it means the effort spent on automatically securing the network scales with the value of transaction data on the blockchain—not the number of transactions. So the more value that rides on the bitcoin network (since individuals value it more as reflected in value), the more resources will be devoted to its security.

This gives us…

What about bitcoin’s energy use and the Lightning Network?

This man is the House of Representatives experienced. He knew what he was doing. Van Valkenburgh sets everything up, and then he turns to the meat and potatoes of the testimony. He goes for the hug and turns the establishment’s argument about the energy consumption of bitcoin on its head. He shifted the narrative and highlighted the known inefficiencies of the traditional financial sector.

“As far as energy usage goes, it is worth noting that the traditional financial sector uses an estimated five times more energy than bitcoin. Granted, the traditional financial sector moves more money. But this attention Worth noting that bitcoin’s energy use doesn’t scale per transaction. So, most of the cost is the fixed cost of setting up an open peer-to-peer system that’s robust. And we have technologies like the Lightning Network that do. Millions of transactions can be bundled into that current system without a meaningful increase in energy. Therefore, it is possible that we can have an open financial system that is censorship-resistant, using one-fifth of the energy of the current financial system.”

So yes, the Lightning Network and its miracles are on record in the US House of Representatives. And, even though bitcoin is not intended to be an outright substitute”current financial system,“The record shows that bitcoin is more energy-efficient, as well as censorship-resistant as a bonus. Finally, it is worth noting that”Five times more energy than bitcoinThere is an extremely generous estimate in favor of the traditional sector.

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What does Van Valkenburgh think about regulation?

The good guys at Coindesk caught up with Van Valkenburgh’s prepared testimony. In A recent episode of his “The Breakdown” podcasts, they cover a completely different area of ​​this:

There are some significant changes in the perception he tries to make, first of all, around the idea that crypto is not regulated, it is false. It is regulated everywhere at the state and federal level. It’s just fragmented. Second, crypto is for crime: Wrong again, in 2020, only 0.34% of all cryptocurrency transaction volume involved a criminal sender or recipient. And remember, these numbers came from Chainalysis, an organization that deals with a large number of government agencies. spends several million dollars. with every year.

Related Reading | Bitcoin sees a storm of Lightning Network activity and adoption

This ties in nicely with the discussion above, and with this direct Van Valkenburgh quote:

“For every transaction that we want to block, there is one transaction that we must convince to be unstoppable. Yes, criminals are making payments on the bitcoin network because banks won’t bank them. There are also pro-democracy activists in Nigeria and anti-police violence protesters in Nigeria, who take donations on the bitcoin network because local banks will not bank them. For every decentralized app that is trying to cheat investors. Another is testing ways to spread universal basic income, remove corporate control over social networking, or eliminate the hacking risk inherent in centralized identity solutions.

Suffice to say, this man went into the belly of the beast and spoke the truth. The bitcoin movement will forever be grateful.

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