Bitcoin has a future, but still a way to go says BitMEX CEO


Believe it or not, Bitcoin is not the first attempt at a digital currency. According to Newsbtc, "the idea of ​​managing the company with digital money lasts three decades". In 1990, a cryptographer named David Chaum created DigiCash in an attempt to bring digital money to the masses. However, his company went under a decade later. Thus, E-gold and Liberty Reserve died just as quickly. The former attempted to represent gold on a computer, while the latter converted currencies into a digital form.


Bitcoin has been influenced by all three of these projects. He has already seen more success than them, although this is probably helped by the fact that it is not a company by itself. Bitcoin has a market capitalization of $ 66 billion, and people are very aware of it, despite the way they can feel about technology.

Learn from past mistakes

In a recent blog post by BitMEX CEO Arthur Hayes, he revealed that while he thinks Bitcoin has a bright future, the "first type of new money" will actually be centralized.

Entitled "Two sides of the coin", Hayes argues that while technology spreads throughout the world in different cultures and peoples of different privileges, an "electronic money" supported by the government will become the new normality. He goes on to say that this new system will be the direct result of the current state of finances at the top of the "increasingly corporate economy".

In addition, the CEO of BitMEX expects that people are becoming more comfortable by distributing their private information through Facebook, Google and other companies. Because of this greater acceptance, users may be more willing to accept an electronic money monitored by the government. Because of convenience, people are more likely to give up their data.

That said, Hayes notes that the US government has taken time with digital currencies. However, other places in the world, like China, are far ahead. WeChat Pay, an application used by millions of users, is essentially digital money supported by the government. Obviously, this system is centralized and has its shortcomings. However, Beijing can control the transactions and payments of the censorship, but only works with the Chinese renminbi.

Hayes argues that these systems will soon move to the West and users will suffer from similar problems:

"The only place left in the system for the participation of inefficient or corruptible human beings will be at the top of the network, where authorities can issue credit directly to people, immediately tax each transaction and determine who can and can not part of the network In theory, your entire financial existence can be governed in this way. "

Control against freedom

There are already other entities here who love to have control. Patreon, a platform that allows users to pay influencers for their creations, has recently banned Professor Jordan Peterson for his controversial statements – a large source of income simply taken away. This is where Bitcoin can help, says Hayes.

The digital currency of Satoshi will adapt to solve the problem of privacy. It will provide a suitable alternative to electronic money supported by the government, which will surely arrive soon. Despite the willingness of consumers to give up their information, privacy is still appreciated and even essential for a functioning company, says Hayes:

"Before you think, cash will not be an option for privacy or anything else, and private citizens will appreciate the intrinsic value of Bitcoin, because their ability to maintain and transfer value discretely it evaporates once the money has done the end of the dodo. "

While he is right, he goes on to say that Bitcoin is still "a real experiment". The payment solution is still different from anything else we've seen. It has the potential to do very well, but it also has the potential to fail. Only time will tell its destiny.

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