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In the case of stricter regulation, the future of Bitcoin does not seem so bright

Although bitcoin advocates claim that cryptocurrency and the blockchain technology behind it bring a new revolution to human life. However, Joseph Stiglitz, a Nobel laureate in economics against the camp, believes that an anonymous and decentralized transaction such as Bitcoin will give illegal companies a chance to sneak into the regulator.

Joseph Stiglitz pointed out: “When you try to establish a transparent financial system, it is difficult to have a security-based payment tool. If you open a loophole in Bitcoin, then all illegal activities will break into the gap, no government will let go. Regardless of.”

As he said, the US Securities and Exchange Commission (SEC) has indeed begun to focus on the virtual currency market, and the authorities of other countries have also begun to formulate policies to manage cryptocurrency transactions.

Stiglitz, who sneered at Bitcoin, said in his interview in January that the dollar is already very useful. Why do you need bitcoin? He advocates this kind of cryptocurrency that is of no use to society. It must strengthen regulation, so as to avoid illegal activities such as money laundering and tax evasion.

The security of Bitcoin stems from the competition of blockchain network members (miners). Every miner is looking for opportunities to add new deals to the blockchain to get Bitcoin in return. Miners use powerful computing power to solve complex numerical problems. An attacker can’t beat the system unless it has a powerful computing system that can smash the system and manipulate transaction records. If so, the attacker can reuse the same bitcoin. Such an attack is called Majority Attack and is the biggest threat to Bitcoin. But for now, mining is more profitable than subversion systems, so the system is temporarily safe. However, this protection mechanism is costly. In order for the Bitcoin network to function properly, the power consumed is similar to that consumed by Ireland.

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Recommended reading:

Cryptos in India: Which way a industry will move?

A history of the development of cryptocurrency in India

 

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