Bitcoin Could Break the Internet, Central Bank Overseer Sayshttps://www.bloomberg.com/amp/news/articles/2018-06-17/bitcoin-could-break-the-internet-central-banks-overseer-saysThe BIS, an 88-year-old institution in Basel, Switzerland, that serves as a central bank for other central banks, said cryptocurrencies are too unstable[1], consume too much electricity[2], and are subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy[3]. It cited the decentralized nature of cryptocurrencies -- Bitcoin and its imitators are created, transacted, and accounted for on a distributed network of computers -- as a fundamental flaw rather than a key strength.
In one of its most poignant findings, the BIS analyzed what it would take for the blockchain software underpinning Bitcoin to process the digital retail transactions currently handled by national payment systems. As the size of so many ledgers swell, the researchers found, it would eventually overwhelm everything from individual smartphones to servers. [4]
The associated communication volumes could bring the Internet to a halt, the report said.
[1] DNotes has focused on stability since day one; preferring a slow gradual increase, rather than pushing for cataclysmic overnight gains that jeopardize long term stability.
[2] POS is much more energy efficient than Bitcoin's POW, and I'm willing to wager that it would be more energy efficient than current banking infrastructure when taxed with similar volume.
[3] Alan, I think you just proved this point with the CryptoDash exchange ICO; The DNotes team would never participate in any unlawful activities that would jeopardize stakeholder funds.
[4] DNotes offers options to store and transact that are not bandwidth intensive - DNotesVault and the Electrum wallets.
Thanks for sharing this article. I've often wondered about that, especially when people sound convinced that one day Bitcoin will take over the world (of finance). I'm like, not with that level of electrical consumption! And I guess the bandwidth requirements are intense as well.
It will be very interesting to see what kind of growing pains DNotes has as it scales up to meet its goal of massive mainstream adoption. I suspect there will be some, but I also believe the DNotes developers and leadership will respond quickly and confidently to whatever technical and other challenges may lie ahead.