Edward Snowden: One Day Bitcoin Will Be Gone

Exiled Edward Snowden hits the crypto news today for expressing his thoughts about bitcoin and cryptocurrencies.

His major thesis is that the use of cryptocurrencies might fade away but this won’t happen with bitcoin. While speaking for an interview with Ben Wizner, the director of ACLU Speech, Privacy and Technology project, Snowden said that the belief that supports bitcoin all this time will transfer itself to other cryptocurrencies.

When he was asked about whether he believes bitcoin has a long-term intrinsic value, Snowden made a comparison between bitcoin and paper fiat money and noted that the only difference between them is the belief generated by state backing. In his words, bitcoin and other cryptocurrencies have e limited amount of fundamental value and have two things that ensure bitcoin remains viable in the near future.

The first thing he mentioned was scarcity which is caused by Bitcoin’s limited supply. This element engenders competition to mine the remaining bitcoin and this gives it a measure of value. The second important factor is the fact how people see bitcoin as a bona fides method of exchange.

He said:

“That belief is how cryptocurrencies move enormous amounts of money across the world electronically, without the involvement of banks, every single day. One day capital-B Bitcoin will be gone, but as long as there are people out there who want to be able to move money without banks, cryptocurrencies are likely to be valued.”

He criticized the existing blockchain paradigm by saying that neither of the two hashing methods is good enough and that new ones, improved ones should be developed. He described Proof of Work as an environmentally destructive activity in favor of the rich.