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A senior bitcoin developer calls the currency a "inescapable" failure

A senior bitcoin developer calls the currency a failure

A senior bitcoin developer calls the currency a

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."

A senior bitcoin developer calls the currency a

 

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

 

You can join the discussion on Bitcoin being an "inescapable" failure on the OC3D Forums

 

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Most Recent Comments

19-01-2016, 04:28:01

spencerlievens
Mike Hearn was pulled away from the core development team for Bitcoin, by none other than the banks. The banks fear Bitcoin due to its low running cost, instant transfers Internationally and complete decentralisation, which in turn means, no need for banks.

So is it a surprise that Mike Hearn is now singing the song of the banks i.e. Bitcoin is doomed, it is "inescapable", no way back etc.

No, this is not the case.

Bitcoin is code, it can be changed, updated, fixed and made better.

The real problem with Bitcoin are the non-incentivised nodes, or in simple terms, there are no rewards for maintaining the networking by running a Bitcoin node. You don't get paid, it only costs money. Because of this, the total node count has been falling, this is far more of an issue than the blocksize will be. Again, this can also be fixed, if the Bitcoin community want it and if the core development team make it happen. But this will be a test of how "centralised" the development team and Bitcoin has become and whether the community does have a say or if the shots are simply being called from the Bitcoin core development team.

Time will tell.Quote
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