Snowden’s Top 5 Thoughts on Bitcoin and Cryptocurrencies: Bitcoin Holders Are Being Watched

Bitcoin holders, you are being spied on.

Edward Snowden, who became a whistleblower in 2013 for exposing the NSA’s mass surveillance program, has had a bittersweet relationship with the blockchain. Snowden worked as a computer intelligence analyst in the global communications division of the CIA (Central Intelligence Agency) headquarters in Langley, Va. Ever since he brought the explosive CIA insider story to light, he was hunted by the U.S. government, then he was granted political asylum in Russia and his life gradually stabilized. Hollywood has also made a movie about his storied history.

Snowden has a large following, engages in public debate by appearing in the news, and through his social media handle, he expresses his thoughts on a variety of different issues.

His recent comments on the Biden administration’s $6 trillion stimulus package, which he called “good for Bitcoin,” have generated a lot of interest among cryptocurrency enthusiasts. Of course, this is just one of many examples of Snowden talking about bitcoin.

” If you’re a con man and you’re trying to deceive the ignorant masses with anything that helps you achieve your goals, cryptocurrency would be the best.”

Snowden's Top 5 Thoughts on Bitcoin and Cryptocurrencies: Bitcoin Holders Are Being Watched

Let’s break down what Snowden has said about Bitcoin and cryptocurrencies in general over the years.

Bitcoin holders, you’re being spied on!
Edward Snowden has been a fierce critic of government surveillance. According to him, governments around the world are employing highly sophisticated surveillance and monitoring systems to sort through massive amounts of public ledgers.

For these governments, Bitcoin’s public ledger is tantamount to a jackpot, which is why they often go to great lengths to keep a close eye on it using state-of-the-art surveillance technology.

To counter this invasion of privacy, the most logical next innovation is the development of private blockchain cryptocurrencies like zcash, which offer privacy by default.

” So basically, if this private blockchain isn’t the norm in a few years, it won’t be due to a lack of innovation or technological incompetence; instead, it will be due to excessive government regulation and a strict oversight system.”

Cryptocurrencies are here to stay, Bitcoin is not
Snowden sees serious flaws in Bitcoin’s design, such as its transparency, security, transaction rates and propensity for speculation. But as Snowden points out, Bitcoin’s biggest structural weakness is its public ledger, which, if not addressed, will lead to Bitcoin’s gradual disappearance in the long run.

That’s because Snowden prioritizes privacy. The public ledger is a record of every bitcoin transaction that is readily available to everyone.

The existing mechanism of the Bitcoin blockchain is compromised by balancing the record of every transaction and simultaneously extending its ability to process them. This balancing mechanism is incompatible with the idea of having a durable and sustainable ecosystem where the blockchain can display a lifetime record of every person’s purchases, which makes it infeasible for Bitcoin to be adopted on a large scale.

What is the value of Bitcoin?
Bitcoin’s inherent design allows for mining with scheduled and natural acceleration. In addition, there is a cap on the total number of bitcoins at 21 million. More than half have already been mined, which prompts us to think that Bitcoin will soon become a fixed money supply with very little room for further growth or expansion. In an interview, Snowden pointed out that there are minor differences between fiat currencies and cryptocurrencies, aside from the fact that fiat currencies are backed by the state.

In contrast, the value of Bitcoin depends on a limited supply of 21 million and its acceptance worldwide. It is therefore safe to infer that Bitcoin has very little fundamental and intrinsic value, but has a highly variable speculative value based on true scarcity.

Bitcoin is slow
Bitcoin’s throughput is severely limited by factors such as block size and on-chain scaling. Snowden claims that Bitcoin’s transaction channel can only process about seven transactions per second. By comparison, payment gateways such as Visa and MasterCard typically process tens of thousands of transactions per second.

According to Snowden, this is a major flaw and limitation in the Bitcoin network. Therefore, in order to be effective for everyday transactions and reduce the costs associated with the Bitcoin blockchain, there is an urgent need to fix the glitches and increase its throughput to higher levels with Bitcoin’s Lightning Network (LN).

For Bitcoin to survive in the long term, there is an urgent need to address these critical issues and ensure that users don’t have to spend hours waiting for their transactions to complete and spend about $20 in transaction fees to keep transactions from becoming congested.

Bitcoin does not meet basic privacy rights
Snowden’s complaints about Bitcoin revolve around the fact that transactions through Bitcoin are not private because everyone can easily access the ledger. He strongly believes it should be designed to be private. He believes that a public ledger is very harmful and fundamentally negates the idea and concept of private money that can be freely used.

An open ledger forces companies to make their books available to everyone, including their competitors, which could ultimately lead to a loss of leverage.
Combined with digital surveillance issues and the rise of authoritarian regimes around the world, Bitcoin appears to fail across the board in terms of privacy, as it is highly vulnerable to related attacks that could reveal all sorts of personal details about users. In extreme cases, it can reveal identities when user histories are accessed through highly sophisticated surveillance systems.

In addition, he calls on the CIA to develop a tool that would render Bitcoin hybrid operations obsolete by conducting extensive analysis of the public ledger. This strongly underscores the fact that individual bitcoins can have “dirty” histories attached to them, thus reducing their fungibility.

Summing Up

In summary, he boils down to when cryptocurrencies such as Bitcoin will design competing systems and mechanisms to counter the threats to privacy posed by powerful institutions, governments, and authoritarian regimes with powerful surveillance technologies.

Sooner or later, governments, powerful entities, corrupt and resourceful individuals will usurp these emerging technologies and outlaw them.

The only sustainable way forward is to design competitive systems that address all the shortcomings of existing systems while appealing to a global consumer base. Until then, the only form of money that trumps everything in terms of privacy is cash.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/snowdens-top-5-thoughts-on-bitcoin-and-cryptocurrencies-bitcoin-holders-are-being-watched/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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