May 03, · Last week, an article was published in the MIT Technology Review with an extremely provocative headline, titled: “Let’s Destroy Bitcoin” And it caused quite a stir – the media began drawing up news alerts, publicizing how some “MIT professors” were planning to sabotage the world’s most popular cryptocurrency. As exciting as “killing” a currency sounds [ ]. An article titled “Lets Destroy Bitcoin” was published on April 24 by MIT Technology Review. The article contains three possible ways that bitcoin could meet its end. Is a battle brewing between MIT vs Bitcoin? Can Bitcoin Shine? The First Option According . The MIT Technology Review has officially published an article that is named “Let’s Destroy Bitcoin” with three ways how the leading cryptocurrency could be “brought down”. Published April 24th (today), the article talks about a lot of things regarding Bitcoin.
Mit lets destroy bitcoinCan Bitcoin Be Destroyed? 7 (Unlikely) Paths to Irrelevance - CoinDesk
Subscribe Now. Yes, Sign Me Up! Amazon, Target, and Walmart Should Dominate This is a tough cost-security trade-off. Bitcoin would have to find a way to lower the cost of security while maintaining the integrity of the ledger. If crypto startups fail to deliver any tangible value in the real world, people could slowly start to lose faith in cryptocurrencies and tokens. Something that arguably happened during the bear market of and In this case, the growth of the market could slow down and its value eventually stabilize.
The crypto market would lose its attractiveness from an investment point of view, leading to further decline and so forth….
Personally, I do believe that some crypto startups will eventually create value in the real world. In any case, the crypto market is still nascent and we still have time until it gets boring. As history has shown also, the market is always capable of bouncing back. Meteor shower via Shutterstock. Can Bitcoin Be Destroyed? Scenario 1: Armageddon Likelihood next 5 years : Close to zero Impact: Sudden death If all sources of electricity, internet and data communications were shut down across the planet, bitcoin nodes would not be able to contact each other.
Scenario 2: Critical bug Likelihood next 5 years : Low Potential impact: Sudden irrelevance In this scenario, a bitcoin update could contain a bug on the level of the infamous DAO project built on the ethereum blockchain , one that puts the integrity of the system at risk. Scenario 4: Joint government crackdown Likelihood next 5 years : Medium-to-low Potential impact: Sudden irrelevance Governments cannot destroy bitcoin itself because of its decentralized nature.
Scenario 5: Major hack Likelihood next 5 years : Medium-to-high Potential impact: Temporary crash This scenario could occur in a few different ways. More likely is a hack then on an application built on top of the protocol.
Scenario 7: Market fatigue Likelihood next 5 years : Low Potential impact: Slow irrelevance If crypto startups fail to deliver any tangible value in the real world, people could slowly start to lose faith in cryptocurrencies and tokens. The crypto market would lose its attractiveness from an investment point of view, leading to further decline and so forth… Personally, I do believe that some crypto startups will eventually create value in the real world.
Read more about So how might a government, or a corporation, or even ordinary people, go about doing so in a way that makes Bitcoin useless or redundant?
Here are a few scenarios. Instead an algorithm automatically makes a withdrawal from your electronic wallet, in a currency called Fedcoin.
Sure, you still have a few dollar bills. But they are tucked away as souvenirs. Louis, and later refined by Sahil Gupta, who as an undergraduate at Yale wrote a study on how a currency like Fedcoin would work. With some colleagues, he wrote code to test a simulation.
In their system, a blockchain records transactions, just the way it happens with Bitcoin. Instead of being updated by a network of unaffiliated peers, however, the Fedcoin ledger is managed by institutions certified by the Federal Reserve. Each bank is responsible for a chunk of addresses on the blockchain.
When new transactions come through, the bank validates them in a new block and sends it to the Fed. The Fed then acts as the final arbiter, checking the entries and unifying the blocks into a master version of the blockchain that it makes public.
To use fedcoins, people must first show proof of identity and set up a wallet with the Federal Reserve or an affiliate bank, at which point they can buy the new currency with US dollars at a one-to-one ratio.
A scheme like this, says Gupta, might gain popularity and ultimately result in the slow disappearance of physical cash. What such researchers are finding is that a digital version of state-run currencies could match or even improve upon the efficiencies of Bitcoin. Gupta believes that transactions should be processed much faster when a central bank is behind the system as opposed to the peer-to-peer network that currently records Bitcoin transactions.
This efficiency could add up to a lot of saved money. The Bank of England, which has been furiously researching blockchain technology, reported in that even partial adoption of a central-bank-issued digital currency would result in a 3 percent increase in GDP as the cost of taxes and transaction fees went down.
A shift away from cash would also make it easier for governments to collect taxes and enact monetary policy, says Campbell Harvey, a professor of finance at Duke University. Because this scenario could happen tomorrow if the right people got their acts together. This time Bitcoin is usurped by a social-media behemoth. To imagine how Facebook could use its popularity to topple Bitcoin, look at how another large network, Telegram, approached the issue. So Facebook, like Telegram, could issue its own native currency.
Or it could take the more insidious route: adopt Bitcoin itself and take it over. Today, the rules of Bitcoin are enforced by a triad of network operators: the users who make transaction requests, the miners who process those requests and write them into the blockchain, and the validators who watch the blockchain to make sure everything is up to snuff.