Kim Dotcom Utilizing Bitcoin with ‘BitCache’ for Megaupload 2.0
Kim Dotcom announced today that the re-launch of Megaupload, slated for 20th January 2017, will be accompanied by a feature known as ‘BitCache’. This feature will link Bitcoin micropayments to transfers on Megaupload, possibly rewarding user’s whose uploads are frequently downloaded with the cryptocurrency. While it is not totally clear how ‘BitCache’ will work but will be without a doubt an exciting development to watch out for next year.
Dotcom then went on to speculate that the ‘BitCache’ feature and re-launch of Megaupload will boost the price of Bitcoin above $2000. When Megaupload launches, given that it will reward people with Bitcoin for uploading files and addresses some of the limitations of Bitcoin’s blockchain, it should increase demand for the cryptocurrency, hence leading to an appreciation.
An announcement earlier this year from the New Zealand-based entrepreneur stated that the new Megaupload will use the user’s database of Megaupload 1.0, which had more than 100 million members. The large user base means that a lot of files will require a large number of Bitcoin transactions. Therefore, January 2017 could see a significantly large addition to the Bitcoin ecosystem as more transactions are required to be confirmed and more users enter the network.
In anticipation of this development, Dotcom urged on Twitter for people to buy Bitcoin “while cheap… Like right now”.
Kim also hinted that the ‘BitCache’ will solve Bitcoin’s block size problems as well as other limitations of the blockchain. Blocks that are mined by the Bitcoin network are limited in size to 1MB and this is one factor preventing bitcoin from scaling and proving itself to be able to conduct a large volume of micropayments.
Dotcom also claims that Megaupload 2.0 will “take decentralization, anonymity, and encryption to the next level”. For now, we will have to wait for solid details on the ‘BitCache’ initiative and further details of the Megaupload project. With an influx of users and possible solutions to longstanding problems within the Bitcoin community, Megaupload’s release could enable Bitcoin to reach new highs. Megaupload joins a list of other projects, such as Yours network, Openbazaar and Brave, that could potentially see Bitcoin finally deliver it’s ‘killer app’ in 2017.