Edward Snowden, known as the popular Whistle-blower, who revealed the existence of PRISM, a clandestine initiative of mass espionage that was perpetrated by the United States government on its people, said Bitcoin (BTC) has become too successful. Snowden made this claim during an interview a few days back for McSweeney’s magazine, The End of Trust (McSweeney’s Issue 54).
He was interviewed by Ben Wizner. In it, the PRISM Whistle-blower spoke about the advantages of crypto tokens and blockchain technology when it comes to being enthusiastic about the potential of BTC to change the society.
Blockchain Doesn’t Include a Takedown Mechanism
Snowden, began the interview by explaining how the blockchain initiative is basically a “new database” were users can write a “history that can not be manipulated.” According to him, the reality is that blockchain technology can theoretically be implemented in numerous ways, but it is important to understand the fact that mechanically, we’re talking about a very, simple concept. Hence, the applications are variations of a single theme: tagged verifiable accounting.
Imagine that today that publicly important data is primarily held at GenericCorp LLC exclusively, which can and doesn’t play God with it against the public’s interest. Rather, it is in a thousand places in hundreds of jurisdictions. There isn’t any takedown mechanism and creating one will require a global consensus of at least 51% of the global network supporting changing the rule.”
Cryptocurrencies and Cash Have Limited Fundamental Value
In addition to being a strong believer of the importance of cryptocurrencies as tools that promote transparency in multiple aspects of our everyday life, Snowden called out Bitcoin (BTC). Explaining why it can actually be a crucial component in today’s economy despite several opinions regarding its lack of real fundamental value.
According to him, blockchain-based cryptocurrencies including Bitcoin (BTC) have limited fundamental value. At most, it is a token that allows you to save data into blocks of respective blockchains, forcing participants in that blockchain to maintain a copy of it. However, he believes that the scarcity of some cryptocurrencies is real.
Competition when it comes to “mining” the remaining few will involve hundreds of millions of USD’ worth of electricity and equipment, which economists claim is what really “backs” BTC. Yet the texchanAs long as there are people out there who want to be able to move money without banks, cryptocurrencies are likely to be valued.” Hence, as long as there are users who want to be to move funds without banks, digital currencies are going to remain valued.”
PoW and PoS May Not be Perfect, But They Can Get The Job Done
As for the characteristics of the most significant consensus mechanisms, Snowden believes that neither PoS nor PoW are perfect. They both have their pros and cons. Although he believes that both can accomplish their mission. They can provide security to the network notwithstanding attacking the issue from multiple angles.
While talking about the features of Proof-of-Work as the consensus protocol of the Bitcoin (BTC) blockchain, Snowden said that the popular token might have exceeded its expectations.