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Kim Dotcom: Bitcache Will Be ‘Off Chain Due to Limitations’




Kim Dotcom has told the public many times that Bitcoin will be an integral part of Mega Upload 2 and Bitcache. Now, with the help from BnkToTheFuture, Dotcom is raising funds to scale the project. According to Max Keiser, the project is nearing 50 percent of its $1 million minimum goal.

Over the course of the Summer, Kim Dotcom has been teasing his new "Mega" file-sharing project and Bitcache. Dotcom said every file transfer will be "linked to a tiny Bitcoin microtransaction." Now the infamous Mega creator is teaming up with investment platform BnkToTheFuture to raise funds. According to BnkToTheFuture CEO Simon Dixon, the Mega2 investment has raised half a million dollars using bitcoin only.

Appearing on the Max Keiser show, Dixon explained there have been many investors who wanted to invest, but came to a barrier at its "Bitcoin only" stipulation. He also detailed that many "hardcore bitcoiners" have also asked about technical aspects of the project. Many have also enquired about the legal standpoint for investing in Mega. Dixon explained Dotcom's attorneys will provide the details. According to Dotcom, he has added a "sweetener" for investors who participate in the first million dollars.

Another investor concern was share dilution after the second and third rounds. Dotcom says he hears what the critics are saying, and will offer a second sweetener. This entails a "warranty" that initial investors will not be diluted in subsequent rounds.

Following Dotcom's responses, BnkToTheFuture's Simon Dixon announced that due to investors' issues they've also opened the crowdsale to bank transfers. Then, Dixon asked Dotcom some of the questions from "die-hard techies" concerning the project's technical details. Dotcom explained a little about the Bitcache prototype, stating: "We have to take Bitcache transactions off the chain and basically do it all on our own system. Because we can't deal with these limitations when it comes to millions and millions of file transfers which are at the same time transactions. In order to provide a service that works with Bitcoin, we had to come up with our own payment solution. The Bitcoin basically enters the Bitcache wallet system and off the chain," Dotcom added.

blockchainDotcom said once the transactions leave the Bitcache system, they will be accounted for on the blockchain. He believes there really isn't a "major security concern" because the transfers are only dealing with microtransactions. The Mega creator did mention in the broadcast that the default transfer amount per file is roughly five cents. He said, however, he doesn't believe people will be keeping significant amounts of funds in Bitcache wallets.

The Mega 2/Bitcache fundraising round continues, and Dotcom seems very excited about the project. He's boasted many times that Mega 2 will bring Bitcoin's price to $2,000 per coin. He also noted he would love if developers fixed the limitation, as he would love to have the platform operate on-chain.

"Right now we just can't do it because our expectations are that we will have millions and millions of users from the get-go. Providing critical mass to the service and we don't want a limiting factor to be the blockchain," he said.

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