- Piyumi Dias talks about the “magic of Bitcoin” and crypto ecosystem
- Bitcoin is a wonderful idea, introduced by an inspired inventor and adopted by the disillusioned masses
- But this boat has a “few gaping holes”
Piyumi Dias, the Assistant Director at the Central Bank of Sri Lanka (CBSL) recently talked about Bitcoin and its different aspects in detail in the local newspaper, Sunday Observer.
Dias acknowledges how with new technology, there comes a learning curve but asserts
“it is imperative that we do not take too long to catch up with these new developments, lest the rest of the world leaves us behind.”
The article provides a good explanation of crypto industry in layman terms that could help the general public understand it with much clarity.
Cryptocurrencies, she explains are a type of digital currencies but
“considered special since they use encryption techniques to ensure the safety of the currency.”
The fact that cryptocurrencies are based on trustless mechanism, she says
“this opens up a whole new payment avenue for the average person: a much faster avenue than what is currently available.”
The Magic of Bitcoin
“People simply wanted a currency that was not controlled by the government and thus subject to its whims,” she also explained the connection between Bitcoin and the financial crisis.
Although there were digital currencies in existence before Bitcoin was invented in 2009, “magic of Bitcoin” was its solution to the double-spending problem.
The mechanism through which the Bitcoin network conducts, Dias said, “appears to be well thought out and secure,” as felt by people around the world too. As such,
“Bitcoin phenomenon has taken the world by storm.”
Bitcoin’s success has an entire ecosystem built around it that resulted in the creation of other cryptocurrencies.
These altcoins like Ethereum and Ripple, she said have begun to chip away at Bitcoin’s huge market share which is because “Bitcoin simply had not anticipated this massive adoption of the currency and therefore, did not plan for transactions on such a mass scale.”
Bitcoin Boat has a Few Gaping Holes
However, Dias was quick to point out how Bitcoin consumes more electricity in a year than entire Switzerland, calling the Bitcoin network a “sluggish behemoth.”
“This could hardly be called a conducive environment for instantaneous peer-to-peer transactions.”
And this is the reason when Bitcoin began to fall behind on its objective of rapid peer-to-peer payments, other cryptos began to raise their heads, she said.
“As a concept, Bitcoins are a wonderful idea, introduced to the world by an inspired inventor and adopted by the disillusioned masses.”
But, the Bitcoin boat, she said has
“a few gaping holes.”
However, the world has benefitted from this endeavor, she goes onto say adding,
“the ecosystem surrounding Bitcoin has proved itself beyond measure.”