UNITED STATES (OBSERVATORY) – The Massachusetts Institute of Technology (MIT) Technology Review published an article titled “Let’s Destroy Bitcoin,” which described 3 scenarios for the elimination of the first crypto currency.
Scenario One: Fedcoin
According to the analysts of the publication, the creation of a national digital currency on the basis of the Federal Reserve System (FRS), for example, called Fedcoin, will lead to the expulsion of bitcoin. In the Fedcoin blockbuster, certified, trusted financial institutions (such as JPMorgan & Chase and Bank of America) will act as authorized nodes, which will replace the model of P2P networks.
“Let’s say there is a distant future in the yard, but you still have to pay taxes, but now you do not fill in any declarations, because the special algorithm writes off the necessary amount in Fecoin currency from your electronic wallet,” the article says.
This concept was presented by the FRS researcher in St. Louis David Andolfatto and supplemented by Bachelor of Yale University Sahil Gupta. According to Gupta, the digital currency of the central bank will allow the payment network based on the blockbuster to be much more efficient, faster and more economical. The Bank of Canada built an imitation of such a system based on Ethreum in 2016.
Scenario Two: Facebook’s dominance
In the second variant control over bitcoin will pass into the hands of Facebook. The social network will create a bitcoin-purse for its users and will reward them with crypto currency for interaction with advertisements, and will allow using the service without showing ads if they agree to provide Facebook with the unused capacities of their computers for mining.
“If the company can convince most of the bitcoin users and miners to use a special bitcoin client from Facebook, then the social network will be able to set the rules of the game and as a result will turn bitcoin into a corporate version of Fedcoin,” the material says.
Facebook can also overthrow bitcoin by releasing its own crypto currency, as does Telegram, which attracted $ 1.7 billion in the course of the ICO.
Scenario three: a lot of altcoyins
Creating a lot of new digital currencies for each individual case: buying a phone from a certain company, car, products in a particular store and paying for core services, according to the analysts of the publication, will make bitcoin insignificant. Moreover, many companies are already busy creating their own tokens, which indicates that this scenario is being implemented today.
“You stand in line at the checkout in the store.There is a digital wallet in your phone that contains not only Fedcoin and Facebook Coin, but also AppleCash, ToyotaCash, as well as coins of every single store that you visit, coins for paying nurse services and travel in the subway, “- write the authors.
In this case, the obvious advantage of bitcoin will be the anonymity and impossibility of censorship, although, according to Edward Snowden, the US National Security Agency (NSA) is already closely involved in identification of bitcoin users.
“If the crypto currency is widely spread, the mass habits will determine what will become the vision of Satoshi Nakamoto, and not the desire of the early supporters of bitcoin,” concludes MIT.