Bitcoin is seen as the world’s largest cryptocurrency with a market cap of over $ 900 billion. But Ripple’s CTO David Schwartz is not equally optimistic about Bitcoin, which has established its presence among many companies and major investors.
Schwartz; He argued that Bitcoin’s most important mission is doomed to failure. According to the Ripple executive, Bitcoin has failed in the last decade to offer its users a system where they can freely transact with each other without being condemned to the participation of any intermediaries. Schwartz pointed to Bitcoin’s core design to explain why this is the case.
“The shape of the design of the PoW consensus mechanism at the heart of the bitcoin blockchain is such that decentralization and true decentralization were never even a possibility. In the past, most people thought PoW was the secret recipe for Bitcoin. However, the first cracks in the foundation of the institution began to appear. ”
Schwartz did not hesitate to talk about the main breakdown in his system:
“The main problem with the approach is that the quality of network participants is not always that high. Since there are no cryptocurrency rewards, the network attracts a pool of less reliable participants who are more likely to leave the system without notification. ”
Ripple’s CTO presented his views on cryptocurrencies and regulations. Defending that a cryptocurrency should be a unilateral market that users can use as a means of savings and exchange, Schwartz added that Bitcoin transformed this situation into a bilateral market.
As a result; Ripple’s CTO explained the current regulations and his thoughts on cryptocurrencies as follows:
“In the coming years, cryptocurrency projects will try to protect their reputation in non-brokerage and decentralization. They will provide users with a way to comply with local regulations without enforcing compliance. ”