MIT found three ways to destroy Bitcoin

The MIT Technology Review at the Massachusetts Institute of technology (MIT) published an article entitled «Let’s destroy Bitcoin», which describes three ways of eliminating the most popular cryptocurrencies.

The state of cryptocurrency

The first is to create the so-called fedline (Fedcoin, the Federal koin): a national digital currency on the basis of the Federal reserve system (the fed).

«It’s like paying taxes without filing is a special algorithm withdraws the required amount from your e-wallet fedkina,» say the authors.

The blockchain fedkina authorized nodes will be certified, trusted financial institutions that will replace the model of P2P networks.

This concept was introduced by the researcher fed in St. Louis by David Andolfatto and supplemented with BA at Yale University by Sahil Gupta. In the opinion of the graduate of Yale, a digital currency the Central Bank will allow the payment network based on the blockchain to be much more efficient and faster, and significantly save money. The article also noted that the Bank of Canada has built a simulation of such a system on the basis of Ethereum in 2016.

Cryptocurrency popular social networks

The second method predpolagaet issuing its own cryptocurrency, or create a bitcoin wallet for each user of the largest social networks in the world – Facebook and Telegram.

«If they can convince the majority of bitcoin users and miners use them baccani, you will be able to set rules that will transform bitcoin into the corporate version fedline», – stated in the article.

Niche cryptocurrency

The third way to make bitcoin irrelevant – it is the creation of many new crypto-currencies for each product or service.

«You are in the grocery store. In a digital wallet on your phone you will find not only Fedcoin and FacebookCoin, but also AppleCash, ToyotaCash and coins, that uses this particular store. There will be a coin which you can pay for certain types of services, for example,» the researchers write.

According to MIT Technology Review, this option is already implemented, as companies create their own coins or tokens to be used only for their services, such as ICO Kodak which released its own token campaign for the licensing of photos.

In this case, the obvious advantage of bitcoin will be the anonymity and the impossibility of censorship, although, according to Edward Snowden, the national security Agency U.S. (NSA) has been monitoring the users of bitcoin.

The authors insist that, if in the future, cryptocurrency will be used everywhere, it is the masses, not the pioneers of bitcoin will determine the viability of first cryptocurrency and modify the idea of Satoshi Nakamoto.

Review Bits.media

From such a respected in the technological environment and the cryptocurrency community institutions like MIT, you would expect a deeper research and a more balanced conclusions.

Cryptocurrency Central banks are being developed for several years, and still not entered even during test operation. In fact, their existence is not anything new — these are the analogues of Fiat money on the basis of newfangled blockchain, and nothing more. They can replace the dollar, Euro or pound, but not bitcoin. Most Central banks, including the Bank of England and the Bank of Canada has already refused this idea, not seeing in her any benefits. It is strange that the MIT researchers do not mention this.

Internal cryptocurrency popular social networks and other services is likely to appear in the foreseeable future. They can press the cryptocurrency among its audience, but it will keep your the main disadvantage of centralization. These systems are unlikely to go further than PayPal or Webmoney, and other existing payment systems created by corporations — Apple Pay, Android Pay, etc. Perhaps with time they will be integrated with public blockchains.

As for the niche cryptocurrency, they have more than enough, and they take a piece of the market, but does not threaten the leadership of bitcoin — perhaps even emphasize it. For them, bitcoin continues to be «digital gold» and the main currency and will probably remain in this role for many more years. Specialized cryptocurrency with small teams of developers just copy the underlying technology of Bitcoin, Ethereum and other giants of the industry but cannot support them yourself.

So, Bitcoin will continue to remain the flagship of the industry, and its investors should not be afraid of the above competitors. His leadership can undermine, rather, the internal divisions of the community.

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