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Bitcoin will not last, but Crypto is here to stay: Edward Snowden

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Edward Snowden, an exiled US informant, weighed up the bitcoin conversation, saying that while the lodestar market will eventually vanish, the use of cryptocurrencies will not end with bitcoins.

Speaking in an interview with Ben Wizner, director of Speech's project, Privacy and Technology at ACLU, Snowden said that the belief that bitcoin supports as a global currency will simply move to other cryptocurrencies rather than dissipate.

Scarcity and faith

Responding to Wizner's question that he believes bitcoin has long-term intrinsic value, Snowden compared bitcoin to paper money and pointed out that the only difference between fiat money and monopoly is the belief generated by support of the state, which basically comes down to "Men with guns". In his view, while bitcoins and other cryptographic activities based on blockchain have a limited amount of fundamental value, two elements, in particular, ensure that the bitcoin remains sustainable in the short term.

The first one that said, is the scarcity, which is caused by the limited supply of bitcoins of 21 million BTC. This scarcity generates competition to extract the remaining millions of bitcoins, and only this gives a measure of value. The second and most significant factor in his view is the fact that large segments of the general population see it as a means of exchange in good faith. According to Snowden, this belief in cryptocurrency frameworks as a method of transferring real monetary value outside banking networks is transferable and will survive bitcoin death.

In his words:

"That belief is how cryptocurrencies transfer huge amounts of money across the globe electronically, without the involvement of the banks, every day." One day the capital-B Bitcoin will disappear, but as long as there are people who want to be able to transfer money without banks, cryptocurrencies are likely to be evaluated. "

"Great utility, poor implementation"

Snowden, who lives in Russia after claiming asylum there in 2013, also revealed that despite his prediction of his imminent end, he likes bitcoin because of the opportunities and possibilities he has created all over the world. Using himself as an example he said:

"Let's say that Bank of America does not want to process a payment for someone like me.In the old financial system, they have a huge amount of influence, like their peers, and they can make it happen.When a teenager in Venezuela wants to be paid in a strong currency for a web development concert that has done for someone in Paris, something forbidden by local currency checks, cryptocurrencies may make it possible – Bitcoin may not really be private money yet, but it's the first "free" money. "

Going further, however, has criticized the existing hashing blockchain paradigm, stating that neither of the two major hashing methods is great and should be developed new. Without threatening words, he described Proof of Work as an 'environmentally destructive activity aimed at the rich, and Proof of Stake as a direct distribution to the rich in the hope that their greed will keep the system functioning.

Featured image from Youtube.

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