“Blockchain will have a hard time once people realize the emperor has no clothes.”
These are the words of renowned Bitcoin enthusiast and CEO of crypto micro investment startup, Amber, Aleksandar Svetski, in his letter to investors. Svetski writes on the dangers of corporate indulgence in blockchain technology arguing that most of the companies are joining the blockchain train to look “hip”.
In the past few years, blockchain technology has been touted as the solution to all the world’s problems following the security and permanence of data embedded in the network. Corporations and businesses are adopting the idea of blockchain simply to follow the trend while raising additional capital for projects that do not take off.
Furthermore, most of the blockchains proposed by these corporations do not offer the immutability, decentralization and security features that a blockchain offers.
Svetski argues that the inherent use of blockchain technology to remove the middle man form transactions is not being implemented. Most of these corporations remain as the ‘trusted’ company in charge of the blockchain demeaning the actual use of blockchain.
“Why would there be any reason to use a blockchain, which is supposed to remove ‘the middle man’, if someone is managing it? This just reinforces its inherent uselessness.”
He describes blockchain as a broken promise that is only implemented in the companies’ protocols for their own benefits and not the consumers’ needs and freedoms.
Aleksandar Svetski, CEO of AMBER
Bitcoin beats blockchains in delivery
The Bitcoin enthusiast further questions the need for corporations to use billions creating new blockchain systems when there is a better option – Bitcoin. He terms Bitcoin blockchain as the “most resilient digital network the world has ever seen” further saying the blockchain has delivered in the past decade unlike the blockchains coming up.
The unique security and immutable structure of Bitcoin as well as the database architecture created through a proof of work system and a working currency makes the pioneer blockchain a better choice than the “hip” movement.
Furthermore, Bitcoin ticks all boxes in eliminating the middleman. A “blockchain” run by a consortium or even a number of decentralized nodes makes the use of blockchains redundant. He further writes,
“Bitcoin’s unique recipe, design and its immaculate conception were a once-in-a-lifetime opportunity to create an autonomous network, made up of participants at multiple layers, all with skin in the game, all with the ability to opt in & opt out freely.”
Bitcoin remains a public entity with no centralized power raising capital without extensive marketing and a corporation backing it, which gives it credibility.
Bitcoin is currently up trading at $13,000 USD following a scare on Wednesday when the coin lost $1200 USD in a crazy 15 minutes of trading.