Bitcoin Won't Last, But Crypto is Here to Stay: Edward Snowden
November 26 2018 - 6:12AM
ADVFN Crypto NewsWire
Exiled American whistleblower Edward
Snowden has weighed in on the conversation surrounding bitcoin,
stating that while the market lodestar will be eventually fade
away, the use of cryptocurrencies will not end with bitcoin.
https://www.aclu.org/blog/privacy-technology/internet-privacy/edward-snowden-explains-blockchain-his-lawyer-and-rest-us";
target="_blank" rel="nofollow noopener">interview</a> with
Ben Wizner, Director of the <a href="http://www.ccn.com/tag/aclu"; rel="nofollow noopener"
target="_blank">ACLU</a> Speech, Privacy and Technology
project, Snowden said that the belief which supports bitcoin acting
as a global currency will merely transfer itself to other
cryptocurrencies instead of dissipating." data-reactid="19"
type="text">Speaking in an interview with Ben Wizner,
Director of the ACLU Speech, Privacy and Technology
project, Snowden said that the belief which supports bitcoin acting
as a global currency will merely transfer itself to other
cryptocurrencies instead of dissipating.
Scarcity and Belief
Responding to a question from Wizner about whether he
believes bitcoin has long-term intrinsic value, Snowden compared
bitcoin to paper fiat money and pointed out that the only
difference between fiat and monopoly money is the belief generated
by state backing, which essentially boils down to “men with guns.”
In his view, while bitcoin and other blockchain-based crypto assets
have a severely limited amount of fundamental value, two things, in
particular, ensure that bitcoin remains viable in the near
term.
The first he said, is scarcity, which
is caused by bitcoin’s limited supply of 21 million BTC. This
scarcity engenders competition to mine the remaining few million
bitcoin, and that alone gives it a measure of value. The second and
more significant factor in his view is the fact that large segments
of the general population view it as a bona fide means of exchange.
According to Snowden, this belief in cryptocurrency frameworks as a
method of transferring real-world monetary value outside of banking
networks is transferable and will survive the death of bitcoin.
In his
words:
“That belief is how cryptocurrencies move enormous amounts of
money across the world electronically, without the involvement of
banks, every single day. One day capital-B Bitcoin will be gone,
but as long as there are people out there who want to be able to
move money without banks, cryptocurrencies are likely to be
valued.”
“Great
Utility, Poor Implementation”
Snowden, who lives in Russia after
claiming asylum there in 2013 also revealed that despite his
prediction of its impending demise, he likes bitcoin because of the
opportunities and possibilities it has created around the world.
Using himself as an example he said:
“Let’s say Bank of America doesn’t want to process a payment for
someone like me. In the old financial system, they’ve got an
enormous amount of clout, as do their peers, and can make that
happen. If a teenager in Venezuela wants to get paid in a hard
currency for a web development gig they did for someone in Paris,
something prohibited by local currency controls, cryptocurrencies
can make it possible. Bitcoin may not yet really be private money,
but it is the first “free” money.”
http://www.ccn.com/tag/POW"; rel="nofollow noopener"
target="_blank">Proof of Work</a> as an environmentally
destructive activity slanted in favour of the rich, and <a
href="http://www.ccn.com/tag/proof-of-stake"; rel="nofollow
noopener" target="_blank">Proof of Stake</a> as a direct
handout to the rich in the hope that their greed will keep the
system running." data-reactid="30" type="text">Going further,
however, he criticised the existing blockchain hashing paradigm,
stating that neither of the two main hashing methods are great and
new ones should be developed. Without mincing words, he described
Proof of Work as an environmentally destructive
activity slanted in favour of the rich, and Proof of Stake as a direct handout to the rich in the
hope that their greed will keep the system running.
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