Snowden: Bitcoin has become too successful

Edward Snowden shared his opinion about blockchain and cryptocurrencies in an interview with McSweeney, noting the high potential of Bitcoin to change the way modern society functions. Snowden noted that the blockchain is simply a "new type of database" where users create a "story that can not be manipulated": "Look, in reality, the blockchain can theoretically be used in various ways, but it is important to understand that mechanically we are talking about a very, very simple concept, and therefore all applications will be a variation on one single topic: verified accounting... Imagine that instead of today's situation, when important information for the public is stored completely in GenericCorp LLC, which can and plays God at the expense of society., it would be stored in thousands of places under hundreds of jurisdictions. There is no shutdown mechanism or "let's hurt" button, and it will require an international consensus of at least 51% of the network to create it. " also, Snowden strongly believes that cryptocurrencies will play a crucial role in promoting transparency in various aspects of everyday life, as well as appreciating the role of Bitcoin in the economy: "what makes a small green paper valuable? If you are not cynical enough to answer "people with guns", which is the main reason why national currencies are treated differently than money from a Monopoly, then you will be talking about limited emissions and sharing the belief in the utility of currency to preserve values and measure exchanges. If we move away from paper currencies, which have no fundamental value, towards a more complex case: why is gold worth more than its limited but real practical application in the industry? Because people just agreed that it was worth more than its practical value. Blockchain-based cryptocurrencies like bitcoin also have very limited fundamental value: it is primarily a token that allows you to store data in blocks on the corresponding blockchains, which cause all other blockchain participants to keep a copy of it themselves. But the limited emission of at least some cryptocurrencies is very real... the Competition for the "mining" of the remaining hundreds of millions of dollars is worth the equipment and the cost of electricity, which economists like to say is what underpins bitcoin. However, the truth is that the only thing that gives cryptocurrencies value is the belief of a sufficient number of people in their usefulness as a medium of exchange. As long as there are people who would like to be able to manage money without banks, cryptocurrencies are likely to be appreciated." Snowden also noted that neither the PoW nor the PoS Protocol is perfect: everyone has advantages and disadvantages – but both protocols allow missions to be achieved and offer security, despite the fact that attacks on them could come from different sides. According to Snowden, Bitcoin could already exceed the expectations of Satoshi Nakamoto: "the Mistake in all this splendor was the unwillingness to predict that Bitcoin will become so successful. For the sake of reward for winning the round, which had previously cost pennies, and is now about $ 100,000, makes economically feasible the investment of huge amounts of energy, the equipment is in date-the centres in the competition in mathematical calculations, or "mining". The Godzilla of city-sized computing has set this competition in motion with challenges of such complexity that it is difficult to imagine." Snowden also noted that he is optimistic about the future of cryptocurrency and the technology behind it, which will soon come out of the experimental phase. Recall that in March, Snowden revealed documents on total government surveillance of Bitcoin users. The documents indicate that" tracking "bitcoin users went beyond a thorough examination of Its blockchain, where users use anonymous identifiers: for example, tracking implied collecting information about users' computers. Also last year, Snowden stated that Zcash is a worthy alternative to Bitcoin, as "designed and built by professional cryptographers": "Zcash privacy technology contributes to the fact that it is the most worthy alternative to Bitcoin"; bitcoin is great, but "what is not private is risky".