“Lets destroy Bitcoin”- MIT comes up with plans to destroy Bitcoin
“Let’s Destroy Bitcoin”, MIT Technology Review has come up with three plans to destroy bitcoin. MIT Technology Review is a magazine published by the world’s best university, Massachusetts Institute of Technology.
Tech writer Morgan Peck writes three scenarios that could destroy the existence of bitcoin. These three ideas are the one that she believes could lead to the ultimate demise of the bitcoins and other current cryptocurrencies.
The first option that she presents is “Government takeover”, the governments will design and launch their own virtual digital money dubbed as “Fedcoins” which will decrease and ultimately eliminate the demand for cryptocurrencies which are not centralized. Since bitcoin is a decentralized currency that does not have any direct authority from the government, will perish sooner or later after centralized cryptocurrency is launched. She explains.
Sahil Gupta, who as an undergraduate at Yale wrote a study on how a currency like Fedcoin would work. In case of fedcoins a blockchain will record every transaction just like in Bitcoin. But the only difference is instead of being connected by a network of friends, this ledger system will be managed by banking institutions certified by the Federal Reserve. “These authorized nodes could be things like Bank of America, JP Morgan, and any trusted institutions,” Gupta said
Each bank is responsible for blocks 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, might gain popularity and ultimately result in the slow disappearance of physical cash.” Said, Gupta
“I’d imagine people first get comfortable spending Fedcoin on things like groceries and movie tickets,“As people realize it’s easier than cash, as businesses realize it’s cheaper than credit cards, and as banks realize it’s literally more secure, so goes the process by which dollars are phased out of the money supply and Fedcoin phased in,” he added
Another strategy proposed by MIT to take down Bitcoin is the “Facebook sneak attack” the author’s most unique strategy to take down Bitcoin involves social media conglomeration which explains about if Facebook or other social media with more than 200 million users worldwide masterminding a stealth takeover of the cryptocurrency market and trading. Just imagine how Facebook could use its popularity to topple Bitcoin.
When considering the second scenario, Facebook launches a multi-pronged attack on the current implementation of cryptocurrency. They will first create a proprietary, third-party Bitcoin wallet and integrates it throughout Facebook’s product suite and the company would thereafter control the rules. It could then refashion Bitcoin as a corporate version of the Fedcoin described above.
But listen there is a much easier way to achieve this, During the first-month facebook builds a user-friendly, secure facebook hosted bitcoin wallet. This wallet is exactly a container for your digital currency. Facebook with its vast resources can easily design a user-friendly wallet.
“Then, overnight, integrate it into every single Facebook account—all 2.2 billion of them. The next morning, Facebook users wake up to find a new goodie tucked into their profiles: a little button that says Send Bitcoin. The wallet eliminates all the wonky quirks that make other Bitcoin wallets confusing. The address of every Facebook user is presented as a real name rather than a meaningless alphanumeric string.” She added.
“For those who already use Bitcoin, the experience is so vastly superior to what they’ve previously experienced that they immediately migrate their funds to their Facebook wallet. Those who don’t yet own any bitcoins, or have never heard of them, could be given the option of earning some on the site, either by watching advertisements or by writing Facebook posts for others to see.” She explained
“For those tired of watching ads, you mix in another fun feature. In exchange for a clean, ad-free experience, users can choose to let Facebook mine bitcoins with their computer’s unused processing power. (Other media outlets, like Salon, are already experimenting with this.) On the side, and with very little fanfare, you build a data center and begin mining bitcoins on your own.” Morgen further explains.
Let the users of Facebook get used to the tools into everyday life. This Facebook bitcoin wallet will provide them a delight to send money over Facebook to any of your friends across the globe within no time. Give them time to settle and focus on the career paths and some time to get addicted to the new feature of Facebook bitcoin wallet. This is the time to take control of the system. The most people around the world will be trading and mining bitcoin at this point in time, using the Facebook software. Facebook can make changes as they prefer.
“As with Bitcoin Cash, a rebellious few will choose to stop using your wallet and will instead send their transactions to the few ideologically driven miners who continue working on the old Bitcoin blockchain. Don’t worry about them. The real Bitcoin, the one that nearly everyone in the world is using, is now yours.” Morgen says.
Now that the Facebook can regulate and implement new rules like the federal reserve, they can mint, block, and reassign at their own will, says Morgen.
The third option is “Go forth and multiply”, which explains about tokenizing of everything. This scenario evolves into a hyper-efficient mass-barter system. Every company will release their own virtual digital currency and an automated system allows users to seamlessly trade their some cryptocurrency for some cash or token depending on which asset they need to complete a transaction. The tokens are not like the points system and gift cards, they can be recorded to blockchain and can be easily and securely transferrable.
“Think of this as an incredibly efficient barter system,” says Campbell Harvey, a finance professor at Duke University. “Barter is generally inefficient, but if you have a network and you tokenize the goods and services and enable it with a blockchain, it can become very efficient.”
Even though if these ideas are far-fetched, could Morgen’s ideas and plans really can destroy Bitcoin? Let’s wait and watch what other financial gurus around the globe have to say about this plan.
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