Why Blockstream Destroyed Bitcoin


Let’s talk about Blockstream. Blockstream hasn’t been around for as long as many think, only being founded in 2014 by Adam Back, and made public in 2015. Now employing most of the actual Bitcoin Core developers, this new corporation is nearly in complete control of the Bitcoin core, Bitcoin’s single development team. Notice that I said corporation. Blockstream isn’t a foundation. It isn’t community funded, donation based or even self funded for that matter. It’s a for-profit company, with products, employees, and investors. But how does a for-profit company, profit from developing a peer-to-peer decentralized cryptocurrency that is designed to have no intermediary roles to pull profit from? Well, you create them. Adam Back, Blockstream CEO, states: “Blockstream plans to sell sidechains to enterprises, charging a fixed monthly fee, taking the transaction fees, and even selling the hardware”, end quote. Sidechains are a separate blockchain that is pegged to Bitcoin’s value. You send one Bitcoin to a smart contract and receive a new coin on the sidechain. Coins on the sidechain can differ from Bitcoin in just about any way. They can have better smart contract capabilities, offer instant transactions, or anonymity features. But the key difference between sidechains and the Bitcoin blockchain is that transaction fees don’t go to the miners, they go to the developers of the sidechains. This should set off some major red flags. These profitable sidechains fill in the gaps of what Bitcoin is not capable of. The more Bitcoin is capable of, the less sidechains will be used. And the more limited Bitcoin is, more profit can be pulled by more users needing to use the sidechains. Blockstream doesn’t make profit on what Bitcoin can do, Blockstream makes money on what Bitcoin cannot do, while in control over Bitcoin’s development. This is a clear conflict of interest. You can take this to two extremes: One, if Bitcoin scales perfectly onchain, has reliable instant transactions and general smart contract capabilities, there will not be a need for sidechains or second layers. The company will have no source of income, and will eventually fail. Or the other extreme, if Bitcoin can’t scale onchain, has unreliable transaction times, high fees, no smart contract capabilities, there will be endless ways to profit from Bitcoin shortcomings. And we all know what has happened since 2015. Bitcoin’s block size has not been raised, transaction fees fluctuate wildly, confirmation times are completely unreliable, zero confirmation instant transactions were removed, the opcodes allowing smart contracts were also removed. All onchain progress has been halted other than compatibility upgrades for the integration of second layers. All while Blockstream has been working on their second layers like Liquid and Lightning. Second layers on the Bitcoin chain are really more accurately described as fee harvesting layers. Attempting to restore the original functionality of Bitcoin while redirecting fees and decision-making from the miners to the developers. Blockstream’s need for these fee harvesting layers was further increased when they began raising investment money, taking a total investment of over 80 million dollars from large institutions, such as AXA Strategic Ventures and the Digital Currency Group, which have considerable ties to MasterCard, the Federal Reserve, the Bilderberg Group, and various other central banking entities, raising further questions to the motives and ethical nature of those in charge of Blockstream. It’s clear that their values are no longer in line with the original Bitcoin community, which is why most of them have left the BTC chain. So it’s Blockstream’s goal to generate profit or to increase the value of Bitcoin? So we actually have green address also, it’s a… it’s a consumer wallet, a mobile wallet, but yeah, largely right now, all of our stuff is free. We’re mainly focused on R&D We have been very focused R&D. Will have Liquid coming out early next year, hopefully, fingers crossed, and that will be a commercial service that will generate revenue. But the the goal is everything will generate revenue It’s not this we’re gonna build stuff for free forever.
Yeah.
So even for blockstream’s satellite…

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