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Thursday, December 3, 2020

Vitalik Buterin highlights major threats to Bitcoin BTC and Ethereum ETH

  • Ethereum is trading above the $450 boundary line while Bitcoin stays above $11,990 in the green zone.
  • Buterin says that technical issues pose a bigger threat to Bitcoin, Ethereum, and cryptocurrencies.
  • Addressing the technical issues will bring a wave of optimism in the cryptocurrency ecosystem.

Bitcoin BTC, Ethereum ETH, and the rest of the crypto-market is off to a good start. But the major concern is, what might prevent Bitcoin and Ethereum from surging. Well, the Co-Founder of Ethereum, Vitalik Buterin holds the answer to that question.

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Recently, Buterin was on What Bitcoin Did podcast, where he weighed in some threats to Bitcoin and the rest of the market, may encounter soon. Buterin seemed quite curious while speaking about quantum computing.

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Buterin said:

“So the thing that I tend to worry about — I mean one is that there’s always this kind of black swan risk of technical failure. What if the NSA comes out with a quantum computer out of the blue and just steals a bunch of coins before you can do anything about it?

[There’s also] political failure. So what if governments banned Bitcoin, commandeered the mining pools, and use that to do what I call a 51% spawn camping attack – attacking the chain over and over again until it becomes non-viable? And meanwhile, the prices are low because the thing’s banned and there’s a crisis of confidence?”

Especially for Bitcoin, he was concerned about the fact that whether Bitcoin will keep attracting investors’ interest in the long run.

Buterin added:

“Bitcoin doesn’t have what I call functionality escape velocity. So basically, sufficient functionality to serve as a trustless base layer for a lot of different applications. As a result of this, there’s a possibility that over time people will find Bitcoin less and less interesting and other platforms more interesting.”

Conclusion

He further addressed the notions about BTC/USD and ETH/USD becoming the norm and being used as the new form of money. Although Bitcoin and Ethereum have outplayed the bashing community and proved its importance, it depends on one’s definition of what makes a currency.

Buterin further added:

“The word money does combine a lot of different concepts. For example, people talk about the unit of account, a medium of exchange, store of value. For the unit of account, ETH is not that and BTC is not that either. For the medium of exchange, Bitcoin is used like that, and ETH is used as that sometimes… ETH has a store of value. That is something that people use ETH for.“

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