Bitcoin bites back at Davos doubters
http://www.swissinfo.ch/eng/wef-2016_bitcoin-bites-back-at-davos-doubters/41914576
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Reports of bitcoin’s demise have been greatly exaggerated at Davos. At least, that’s the view from the Swiss bitcoin sector, which has shrugged off recent internal squabbling and an avalanche of criticism from both the traditional banking sector and fintech pioneers.
The digital crypto-currency has always had its doubters who fear it could provide a platform for money laundering, terrorism and a host of other unsavoury activities. But a new round of pessimism descended on bitcoin last week when high-profile Zurich-based developer Mike Hearn announced on his blog that he was quitting the project.
“The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins,” he wrote.
“It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked ‘systemically important institutions’ and ‘too big to fail’ has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse.”
Guido Rudolphi, who plans to create the world’s first bitcoin bank in Switzerland, disagrees. Hearn is disillusioned because his particular vision for bitcoin did not take off, he told swissinfo.ch.
“I am not for one second concerned for bitcoin. It is not doomed,” he countered. “This whole discussion reminds me of the time the internet started. We have had these discussions about bitcoin before, but they have never been filled with such drama.”
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The digital crypto-currency has always had its doubters who fear it could provide a platform for money laundering, terrorism and a host of other unsavoury activities. But a new round of pessimism descended on bitcoin last week when high-profile Zurich-based developer Mike Hearn announced on his blog that he was quitting the project.
“The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards. I will no longer be taking part in Bitcoin development and have sold all my coins,” he wrote.
“It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked ‘systemically important institutions’ and ‘too big to fail’ has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse.”
Guido Rudolphi, who plans to create the world’s first bitcoin bank in Switzerland, disagrees. Hearn is disillusioned because his particular vision for bitcoin did not take off, he told swissinfo.ch.
“I am not for one second concerned for bitcoin. It is not doomed,” he countered. “This whole discussion reminds me of the time the internet started. We have had these discussions about bitcoin before, but they have never been filled with such drama.”
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