Let’s Crush BTC: Three Scenarios of Bitcoin Failure
MIT magazine affiliated with the Massachusetts Institute of Technology (MIT) has published a work titled “Let’s Destroy Bitcoin” to cover three scenarios for collapse of Bitcoin.
The scenario implies Bitcoin will be ousted from all markets as soon as Federal Reserve-backed cryptocurrency “Fedcoin” is created in the US as the currency supported by the US Central Bank will make the blockchain net more efficient and convenient.
The theory came up as the Canadian Central Bank launched simulation of similar system on Ethereum blockchain in 2016.
Following the lead of Pavel Durov’s creation, the largest social net may create either its own cryptocurrency or a BTC-wallet for each user. Each account will get its reward for leasing out computational capacities for Bitcoin mining. Putting it in other way, Facebook will monopolize Bitcoin with two billions of would-be miners.
Creating of specific cryptocurrencies whether it be one for purchasing a car or a smartphone will make Bitcoin useless. The only advantage left here for Bitcoin will be anonymity which is questionable in fact as according to Edward Snowden the National Security Agency has long been trying to identify the holders of the first cryptocurrency. This is the most possible scenario as many organizations are already developing their own cryptocurrencies.