Renowned Harvard cryptographer and technology analyst, Bruce Schneier, has described cryptocurrency as a totally useless entity to anyone other than mischief causing individuals or groups, wanting to move funds without being listed on the government’s monitor.
Drawing in on topics that have been discussed and dismissed repeatedly, Schneier is of the opinion that Bitcoin has abandoned the aims set down by its original whitepaper as in reality, apart from being difficult and risky to operate, the point rendering it pretty useless is that it fails to even deliver on its basic set of fundamentals.
In an article, Schneier noted that the trust issue was the perfect illustration of the basic failure associated with cryptocurrencies.
He explained that even though the system of electronic payments was designed to trade without having to trust the other party, a closer peek at the underlying architecture of digital assets would indeed showcase its dependency on trust at many stages- which would in turn defeat the argument of having developed such a basis for transactions itself.
Crypto users can only trust Bitcoin miners to validate their transactions and to basically keep the whole blockchain from collapsing. Schneier said that Bitcoin has effectively taken away human’s ability to rely on trust and has placed it in a technology whose own security is not guaranteed.
Elaborating on his point, he said:
“If your bitcoin exchange gets hacked, you lose all of your money. If your bitcoin wallet gets hacked, you lose all of your money. If you forget your login credentials, you lose all of your money. If there’s a bug in the code of your smart contract, you lose all of your money. If someone successfully hacks the blockchain security, you lose all of your money. In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expertise to audit?”
The analyst also dug up another argument to back up his belief of cryptocurrency being pointless to invest in, stating that it poses a large threat to the environment due to the amount of energy consumed by mining operations.
In conclusion, Schneier might have a point since technology and human interaction maximises the potential of any venture and total dependence on one, eliminating the other, renders the control of the operation totally pointless.
Would you go as far as calling cryptocurrency “totally pointless”? Shout out and let us know…