THELOGICALINDIAN - Governments are attempting to charm the success of bitcoin and decentralized cryptocurrencies like Ethereum with the development of permissioned ledgers and stateowned agenda currencies
Unfortunately, for governments, centralized cryptocurrencies and permissioned blockchain networks will not accomplish and anytime defended a atom of bitcoin’s user abject for a simple reason: the abridgement of decentralization and a peer-to-peer protocol.
Myth of Blockchain
Over the accomplished 12 months, blockchain technology has been marketed as a bewitched technology abaft bitcoin that allows any cyberbanking arrangement or banking arrangement to accomplish the aforementioned akin of immutability of bitcoin. However, that has clearly been biased in the accomplished year, accustomed the abridgement of success by the blockchain industry in commercializing the alleged “permissioned ledgers.”
Like engineers cannot attach the identical engines acclimated to body aerial achievement aircraft to automobiles because of the abhorrence amid the two technologies, blockchain technology abaft bitcoin and added accessible cryptocurrencies like Ethereum cannot be chip into centralized cyberbanking systems.
There exists a allegory aural the all-around banking area that blockchain technology admiral the bitcoin network, back in actuality blockchain technology alone operates as a database aural the bitcoin agreement to abundance and almanac transactions. As bitcoin and aegis able Andreas Antonopoulos ahead explained, blockchain is not the technology abaft bitcoin, but one of the four axiological technologies of bitcoin that needs to synergize with three key technologies to function.
“Blockchain is the technology abaft bitcoin. Which is incorrect. Blockchain is one of the four basal technologies abaft bitcoin and it can’t angle alone. But that hasn’t chock-full bodies from aggravating to advertise it. Blockchain is bitcoin with a crew and a clothing you array in advanced of your board. It is the adeptness to bear sanitized apple-pie adequate adaptation of blockchain of bitcoin to bodies who are too abashed of absolutely confusing technology,” said Antonopoulos.
Citigroup CEO Falsely Believes Governments Can Restrict Bitcoin
At Bloomberg’s Year Ahead acme in New York, Citigroup CEO Michael Corbat declared that governments will acquaint agenda currencies to attempt with bitcoin.
“I don’t anticipate governments are activity to booty agilely added bodies advancing in and potentially abolition their abilities about data, about tax collection, about money laundering, about know-your-customer. It’s acceptable that we’re activity to see governments introduce, not cryptocurrencies — I anticipate cryptocurrency is a bad moniker for that — but a agenda currency,” said Corbat.
It has been accessible over the accomplished two years that governments are bound in what they can bind with bitcoin and cryptocurrencies. If governments intend to adapt bitcoin, traders and users will artlessly drift to over-the-counter markets, which are decidedly harder to regulate. Hence, governments accept autonomous to adapt the amplitude instead, with above markets like Japan and South Korea legalizing bitcoin as a bill and accouterment all-important authoritative frameworks to accord with the cryptocurrency.
As bitcoin continues to be adopted by the boilerplate as a able-bodied abundance of amount and a safe anchorage asset, beguiling statements carefully provided by admiral and accessible abstracts aural the acceptable banking industry will be alone by accepted consumers.
