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Bitcoin Has a Problem – Edward Snowden

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Since the advent of cryptocurrency, there has been widespread scepticism. While some may argue from ill-informed positions, others have valid reasons for their ongoing concerns. One of the major concerns of analysts has been the issue of security. Bitcoin, being the biggest currency in the digital market right now, draws much of this focus. This explains the recent sentiments by Edward Snowden, a renowned whistleblower.

The Elephant in the Room – Privacy

One of Snowden’s, concerns about Bitcoin is not scalability as would be expected, but privacy. He made these comments while addressing participants of the Berlin Blockstack event that happened in early March. He believes that Bitcoin’s privacy is the real problem that needs to be worked on it aims to gain more trust from investors. He says:

Everybody is focused on the transaction rate limitations of bitcoin being its central flaw, actually, the much larger structural flaw, the long-lasting flaw, is its public ledger.

Snowden believes that the idea of a public ledger does not auger well with the mechanism of the trade and may not be sustainable in the long run.

He says:

You cannot have a lifelong history of everyone’s purchases, all of the interactions be available to everyone and have that work out well at scale,

Other Cryptocurrencies Doing Just fFne

On the same note, he believes that there are other cryptocurrencies that have put in place the right security and privacy measures, and that these have a brighter future in terms of growth and acceptability. One of these, he says, is Zcash. He believes that this currency is the most interesting at the moment, based on its unique privacy properties. He also notes that many other cryptocurrencies have been trying to follow suit in their bid to increase their security and privacy.

More Privacy, More Potential Dangers

Notably, Bitcoin was once the talk of town for being the most anonymous channel on which to make payments online. As such, it has been accused of being used in funding terrorists and money laundering. However, contrary to popular belief, Bitcoin is actually traceable.

Unfortunately, this is usually easier said than done because transaction patterns can be identified by tracing IP addresses. Snowden added to his comments, saying while a public ledger may be an all important feature with regards to the consumer base, it could offer governments the upper hand when collecting data.

What do you think about Snowden’s concerns over the privacy of bitcoin? Does this privacy, whether real or perceived, pose any dangers to the cryptocurrency and its users? Let us know of your views in the comments section below.

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