A senior bitcoin developer calls the currency a “inescapable” failure

A senior bitcoin developer calls the currency a “inescapable” failure

 

Mike Hearn, a Senior bitcoin developer and former chair of the Bitcoin Foundation, has declared that the cryptocurrency was a “failed experiment”, blaming the refusal of the community to adopt new standards that would allow the community to grow. 

Mike Hearn has said that he will be selling all of his Bitcoins and that he would quit development on the project, stating that the section of the community with power over the currencies future is far too centralized and resistant to change, saying that they are worse than banks. 

 

“Despite knowing that bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly,”

“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.”

 

From the outset Bitcoin was supposed to be a decentralized currency, with users devoting computing power to verifying transactions in a process known as mining. Over time miners became highly centralized and mining has became unprofitable for those who use standard PC hardware, leaving only those with large banks of specialized hardware being able to profit while mining on the network.

As a result of mining becoming so centralized Hearn says that more than 50% of the networks power is controlled by just 2 ysers and that “over 95% of hashing power was controlled by a handful of guys sitting on a single stage”. 

Right now Hearn says that the miners that are in control of the currency is reluctant to make any changes, resulting in the Bitcoin network being overly congested and unable to cope with the strain. Right now the currency is expected to continue in it’s decline. 

 

       The fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards

 

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