Bitcoin decentralization lost due to mining monopoly
Stock Markets Group – this was stated by Executive Director of Ripple Labs Inc., Brad Garlinghouse, the conference Stifel Cross Insight Conference in Boston.
Answering the question about the prospects of cryptocurrency from noticed that the technology of the blockchain has become popular due to advertising and bitcoin so limited in distribution that is controlled by the Chinese miners that will not allow him to become a world currency.
By asking this question, the participants most likely expect to hear more about Ripple and the future of technology, since Garlinghouse was specially invited as honorary guest of the forum.
However, taking advantage of the moment, he could not help but touch on the recent statement by Steve Wozniak that bitcoin will become the global Internet currency.
“Many famous people, including Steve, believe that bitcoin will become a major world currency. I think this is absurd as it doesn’t make sense and hardly any one major economy in the world go for it”
In his speech, brad Garlinghouse did not say anything new and only confirmed its position, which is known in 2015 to invest and to develop Ripple.
Speaking about bitcoin, he divided blockchain technology and cryptocurrency noting:
“There are a lot of different, sometimes crazy developments based on blockchain, but there are only three leading. In the future, this technology will not threaten the banks, it will play an important role in the entire banking system. But bitcoin didn’t become the panacea we all hoped”
Indeed, such a statement only confirms the fact that the euphoria that was previously injected around the main coins, today, many disappointed, which ultimately was the cause of the global collapse rate of the BTC in the first half.
As for the monopoly of China on the main cryptocurrency, he believes it is one of the reasons for the undervaluation of the asset.
“The right thing what happened is that the word “bit” you added the word “coin” (coin). But there is another history, which are silent, but you have to pay attention. Bitcoin is really controlled by China, as the country has four main mining-pool that own and control over 50% of bitcoins. Now answer, who can guarantee that this country will not affect cryptocurrency? Who in the world would want to deal with the coin-controlled China?”
At the end of the speech, he added:
“I have Bitcoin, which many believe is digital gold. I’m long enough in the stock market, and would wish to invest in bitcoin only what you can afford to lose. It is too early to speak about when and how this can happen, and consider investing in crypto currencies is a good strategy”
Decentralization, which is so much talk and fear of intervention by Central Banks to issue digital coins, really under a big question, as previously considered the advantage of a limited number of bitcoins, becoming the disadvantage of of the most popular cryptocurrencies.
Recent studies indicate that the major part of the asset is concentrated only on 1600 wallets, and it does not mean that the purses of different owners.
If this is true, speaking of world domination cryptocurrencies need to understand the high risk of manipulation of this “digital gold” is not only the market, but in General, it is much more dangerous to invest than the control of regulators.
Stock Markets Group™