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Bitcoin (BTC) is not the first stab in the digital money world. In fact, the idea of managing the company with digital money has been around for three decades, if not more. David Chaum, an American cryptographer, founded DigiCash in 1990, but did not fail a decade later. E-gold, a computer-based representation of gold, and the Liberty Reserve, which converted US dollars and euros into digitized counterparts, failed, just like its predecessor at DigiCash.
But, when Satoshi Nakamoto published the original Bitcoin whitepaper, which was influenced by the failures of the above three digital money attempts, some quickly became convinced that it would take hold. And, probably, has. BTC has now reached an aggregate market capitalization of $ 66 billion and almost everyone in the Western world has heard "once or twice" say "cryptocurrency" or "blockchain".
However, through a recent blog post, Arthur Hayes, CEO at Hong Kong's BitMEX office, said the "first new type of money" will be centralized, not decentralized. It is interesting to note that his post is a bit heart-wrenching and arrived on the tenth anniversary of the first block developed by Bitcoin. But do not worry, Hayes also expressed optimism about Bitcoin's prospects.
The "Forked Future of the Future"
In the post, titled "Two sides of the coin", Hayes explained that while technology continues to spread in all aspects of society, a centralized electronic money, supported by the government, will probably become the norm – or "natural", like the BitMEX chief said. He explained that this centralized system will be a by-product of the existing financial infrastructure, along with the "increasingly corporate economy".
The key member of BitMEX's excellent work added that as consumers become more accustomed to delivering our private data – whether through Facebook, Google or the traditional monetary system – an actively monitored electronic coin becomes possible from the government. The loss of privacy by the company derives from the abundance of convenience and entertainment, made possible by often exploitative technologies that track every bit and byte of data.
While the United States has been slow to adopt digital payments, Hayes noted that the government-backed computer-based drive for money has already begun in China, as millions in the Asian power plant now use WeChat Pay. And it is no secret that WeChat Pay can fall victim to shortages, especially those that are catalyzed by the presence of centralized entities. Through the system, payments can be censored, Beijing can monitor citizens and, even worse, it only works with the Chinese renminbi.
Related reading: China closes the Blockchain accounts on WeChat
And in the end, when similar systems are clearly presented in the Western world, consumers who use this product will experience similar negative aspects. Hayes wrote on the topic:
"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. "
Interestingly, financial technology service providers have already shown signs of this dictatorial entrepreneurial strategy. Just recently, Jordan Peterson, a Canadian professor who likes to talk, has been banned from Patreon – one of his main sources of income – and the Hacker News computer security news portal has lost access to his Paypal accounts.
But that's where Bitcoin comes into play.
Bitcoin still has a bright future in itself
Bitcoin will fill the privacy void, since its pseudonymous address system, coupled with nascent privacy protocols, will make it an excellent alternative to centralized electronic money that is undoubtedly in the pipeline. In contrast to this "top-down" system, the world's first blockchain network is uncensurable, borderless, non-inflationary and, more importantly (in the eyes of Hayes), private – far removed from the centralized systems of the future. The CEO of BitMEX explained that privacy is an integral part of any well-functioning company, making a system like Bitcoin more than essential. He wrote:
"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. "
However, he explained that basically, Bitcoin is "still a very experiment", as it is the first system of its kind. This feeling that Bitcoin is only an experiment, but also an elaborate one, has been echoed throughout the cryptosphere in recent memory.
According to previous reports by NewsBTC, the founder of Xapo, Wences Casares, said that Bitcoin is nothing more than an "interesting intellectual experiment". Finding that cryptography is an "experiment", Casares noted that it is still worth paying attention to this sector, even if the results of this experiment are not optimal or according to plan. He explained that it would be irresponsible "not to recognize that it could not work", as Satoshi, like other human beings, was inherently fallible.
However, Casares, along with his Hayes peer, has still optimized the optimism of the long-term project. Hayes noted that Bitcoin lasted for ten years, even with the "biggest bug bug" in software history, emphasizing the fact that the project is intended to remain long-range. And, given that non-private digitized money becomes trivial, the intrinsic value of BTC will become more than evident in the eyes of society.
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