Why Bitcoin is a critical component of today’s economy? Explains Edward Snowden

Edward Snowden spoke with Ben Wisner for the magazine McSweeney. In his interview, he spoke about the benefits of cryptocurrencies and blockchain showing his optimism about the potential benefit of Bitcoin to society. Wiesner described Snowden as “very clear, patient and least forgiving of the narrator about the technology”, with whom he had ever met. Without changing his own style at the beginning of the interview, he called the Blockchain “new database” where users are “protected from manipulation history”.

The reality is that the block chain has many uses, but from a mechanical point of view, we’re talking about a very simple concept. One of the main uses is verifiable accounting.

Imagine that we live in a world where important social information is stored exclusive in some giant Corporation that uses this data solely for their own benefit. And suffering in this society. The blockchain is impossible. No leverage for manipulation. There is only the rule of a global consensus, and decisions are made only when it reaches 51% consonants.

The fundamental values of cryptocurrencies is limited… but the Fiat is also not a panacea

Writes Ethereumworldnews, Snowden sincerely believes that cryptocurrencies will help to solve the problem of transparency in various aspects of our daily lives. However, he did not rule out that Bitcoin can become a crucial component of the modern economy. Despite the absence of basic monetary functions.

Think about why the little green piece of paper valuable? You can cynically assume that it is backed up by “men with guns”, so its value is higher than the wrappers of Monopoly. You can drag here the element of scarcity, faith in the usefulness for society as a store of value or medium of exchange.

Departing from the paper money, you can think about why gold is so expensive? It is not often used in industry and payment means also can not act. So what’s the deal? But the fact that people simply accept his far-fetched value. And indeed it is.

Source: AdWeek

According to Snowden, cryptocurrencies have the same limited value. Usually, it’s just tokens that allow you to save data in the respective blocks of the block chain, forcing everyone to participate in the development of the network and keep a copy of the chain. Furthermore, the element of deficit in some cryptocurrency even more important than gold. Hundreds of millions of dollars invested in equipment and electricity necessary for the production of coins, the final amount of which is limited.

However, the hard truth is that the main component of value of cryptocurrency is only the people’s faith in their usefulness as a medium of exchange. Yet there are people who need to move money to bypass the banks, cryptocurrency will have its importance. More data look at cryptodata.

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