Editorial 25 April 2018Erik Gibbs
3 ways BTC kingdom can be ‘destroyed,’ as told by MIT
Virtually everyone by now has, at a minimum, a general idea of what cryptocurrency is. Spawned from the online gambling industry’s desire to get payment methods that are outside the traditional banking system, the digital currency promises to be a currency controlled by the entire system instead of a central bank. The idea is solid and has a great amount of merit, which is why BTC, the world’s first cryptocurrency, took off the way it did, skyrocketing in value from $1 to almost $20,000 in six years.
As with any product or service, BTC’s popularity gave rise to alternatives—about 1,100 of them at the moment. But just like the mighty Roman empire of Augustus, BTC’s dominance could be toppled. And according to a report published by MIT Technology Review, there are three ways the BTC kingdom “could be brought down.”
One way would be through a government takeover. Governments could create their own cryptocurrency, which would be issued by a central bank. The coin’s ledgers would be managed by authorized institutions (in an effort to maintain “decentralization”) which would, more than likely, be nothing more than large banks. Users would have to show their identity to set up a wallet with the central bank, and the practice could slowly do away with physical cash.
Models of this scenario have shown that central banks could actually perform better than BTC. The Bank of England, which analyzed a state-backed cryptocurrency in 2016, determined that a central bank-backed digital currency solution would result in an increase of 3% in the gross domestic product of the UK.
Another option to fell the cryptocurrency giant would be a sneak attack by Facebook. Yes, that Facebook. The scenario is simple: Facebook, with its supposed 2 billion users, launches its own cryptocurrency. It then uses its pull to convince a great number of BTC users to run proprietary Facebook-created BTC software, and ultimately control how well, or poorly, the coin performs.
One other kingdom-cracking solution would be to make BTC obsolete, unimportant. BTC Core developers’ resistance to changes has resulted in the network slowing down with backlogs of unconfirmed transactions that took hours to confirm and cost high fees to process. To put it simply, BTC is no longer a cryptocurrency as it does not scale and is expensive to transact in. Sidechains do not work and many current tech thought leaders believe it is impossible to get it to work.
The emperor’s reign is already faltering. Looking at the performance of coins such as Bitcoin Cash over the past week, virtually all have posted gains above 30%. All, that is, except for BTC. Bitcoin Cash is up a staggering 91% on the week, yet BTC has only gained 18%.
Bitcoin Cash is the only coin that follows the original Satoshi Nakamoto white paper, offering the best scaling and security features. It reverted to the unadulterated form of the blockchain to stay true to Satoshi’s vision: replace-by-fee was removed, the signatures are preserved, transactions are kept irreversible, fees are kept low, and the block size is increased to accommodate more users and keep transaction processes fast. Bitcoin Cash can do everything all the other platforms can do and more.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
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