The price of Bitcoin has continued to take hits over the past two weeks especially due to the release of unfavorable news. Edward Snowden who is famous for revealing the surveillance agenda of the NSA in 2013 was among those who had some not so nice things to say about Bitcoin.
Will lack of privacy be Bitcoin?s downfall?
In his latest announcement, Snowden said that he believes that Bitcoin which is currently the top cryptocurrency might be succeeded by a different cryptocurrency that is not based on a public ledger. Snowden was speaking at a Blockstack event which was held in Berlin when he made the statement. He also added that one of the major weaknesses of Bitcoin is the lack of privacy and not the inability to scale as many analysts believe.
Snowden claimed that the fact that blockchain is operated on a public ledger is the biggest drawback to the cryptocurrency. This is contrary to the belief that the biggest disadvantage to the cryptocurrency is the very limited transaction rate.
Speaking through a webcam, Snowden explained that having a history of years of transactions of billions of people available on a public network is not the ideal way to go. Despite his claim, he also appointed out that Bitcoin has done quite a lot for the cryptocurrency market and that it will most likely still be in the market in the unforeseeable future considering that its development team is constantly making improvements.
Interest in privacy-centric coins
The NSA whistleblower also revealed that he is interested in cryptocurrencies that focus on privacy such as Zcash. Such coins hide or encrypt data on the blockchain so that users can keep their transactions private and also verify the integrity of those transactions. Snowden believes that Zcash is currently the best cryptocurrency when it comes to privacy. However, he acknowledged the fact that more cryptocurrency projects are jumping on the privacy bandwagon and he believes that this is a positive step forward.
Snowden stated that he has previously tested other altcoins that are focused on privacy including Monero but explained that he feels more comfortable with Zcash especially because it was created by academic cryptographers. During the webcam chat with the audience, he was also asked about his thoughts on emerging technologies being used by corrupt individuals and organizations. His reply was that the developers of these technologies should focus on coming up with systems that are so effective and attractive that the global consumer base cannot afford to ignore them.
This statement could be in support of the revolution that is being caused by blockchain technology. This decentralized ledger technology is currently being adopted by different industries and even governments are jumping on board so that they can leverage the speed and efficiency that blockchain offers in running systems.
Snowden?s remarks might breathe new life to altcoin projects that are privacy-centric, causing their prices to go up. Meanwhile, governments have also been expressing concerns over the use of such cryptocurrencies to facilitate illegal activities since there is no monitoring involved.
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