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“Let’s Destroy Bitcoin” is the latest research paper by MIT Technology Review on how to lessen the power of the indigenous digital coin. It was released today April 24, 2018.
The review focuses on ways to make bitcoin less important as it has been since its all price high in 2017 season.
Option 1: Government Takeover of bitcoin
MIT Technology Review proffers three ways to break the dominance of bitcoin, the first option is a government takeover of Bitcoin with the creation of a Federal Reserve-backed coin, which it calls Fedcoin:
“The year is two-thousand-something-big, and it’s the day your taxes are due. But you don’t file them. Instead an algorithm automatically makes a withdrawal from your electronic wallet, in a currency called Fedcoin.”
This means that the blockchain would have verified financial institutions as the authorized nodes instead of peer-to-peer networks, which is synonymous to bitcoin.
Yale undergrad Sahil Gupta told the MIT Technology Review that trusted financial institutions could make this possible.
The article notes that the Bank of Canada built a simulation of such a system on Ethereum (ETH) in 2016.
Option 2: Call Facebook to create its own coin
Facebook is the largest social media platform on the internet, meaning it could use its strength to enter the cryptocurrency arena.
Statista.com statistics shows that Facebook now has over 2billion users globally:
“…As of the fourth quarter of 2017, Facebook had 2.2 billion monthly active users. In the third quarter of 2012, the number of active Facebook users had surpassed 1 billion, making it the first social network ever to do so.
“Active users are those which have logged in to Facebook during the last 30 days. Furthermore, as of that quarter the social network had 1.74 billion mobile MAU. The platform is also the most popular social network worldwide.”
The MIT Technology Review wants Facebook stealth takeover of Bitcoin, urging the social media to create a BTC wallet for all of its users, and continue to reward users in the cryptocurrency for interacting with ads, and giving them an ad-free experience if they let Facebook mine on their computer’s unused power (as Salon offered earlier this year).
“If Facebook could persuade a large enough fraction of Bitcoin users and miners to run its own proprietary version of the Bitcoin software, the company would thereafter control the rules. It could then refashion Bitcoin as a corporate version of the Fedcoin described above.”
Mark Zukerberge once expressed his views about the Blockchain Technology, praising it as the future of tech. He didn’t mention when he will enter the crypto world, though.
Option 3: Creation of Multiple Cryptocurrency
The third way of making Bitcoin “irrelevant” is the creation of multiple new cryptocurrencies for every situation:
“You’re in the checkout line at the grocery store. Inside your phone’s digital wallet you find not only Fedcoin and FacebookCoin but also AppleCash, ToyotaCash, and a coin specific to the store you’re standing in. There’s also a coin redeemable for babysitting services, and another that gets you rides on your local subway system.”
This is happening already, with over 1,000 coins in the market, but their strength have largely depended on bitcoin value.
For now, bitcoin determines value of other digital coins, when bitcoin goes up , they go up, when bitcoin comes down, the loose value too.
Companies are already creating their own coins for their customers and users. One of them is Kodak’s ICO, a currency used to license photographs.
Bitcoin may have upper hand in this regard because of its anonymity and impossible to censor.
The article notes that the US National Security Agency (NSA) is already attempting to link people’s identities with their BTC addresses, according to documents leaked by Edward Snowden, and if governments “seek to create and enforce blacklists,” they could pressure the “crucial” BTC miners.
There are also reports that bitcoin isn’t 100% anonymous, anyway.
For instance, at the end of March, Snowden had said in an interview that Bitcoin’s Blockchain ledger was “devastatingly public” and that a good alternative to fiat that cannot be controlled by the government has not yet appeared.
MIT Technology review concludes that “if cryptocurrencies are to be widely used, it will be the habits of the masses, not the wishes of Bitcoin’s early adopters, that determine what becomes of Satoshi Nakamoto’s vision.”
We expect to hear views of bitcoin enthusiasts in the days regarding this MIT Technology Review.
Over to you:
Which of the above MIT Technology options will be possible to implement?