Bitcoin “fails like an electronic cash system”: Edward Snowden
Important takeaways
- Edward Snowden has said that he is “very much a fan” of Bitcoin, but he believes that the lack of privacy may mean that it fails in the long run.
- The US whistleblower said that there are several cryptocurrencies that can be considered as money that looks like gold instead of currencies.
- He added that he believes competition between cryptocurrencies is a net positive for the world.
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The US whistleblower has expressed his concern about the financialization of the crypto space, but added that he sees a big promise in the technology.
Edward Snowden talks Bitcoin
Edward Snowden says he believes in the crypto movement, but he believes there are some major obstacles to tackle in the coming years.
In a virtual interview at Consensus 2022 in Austin today, the US Whistleblower and President of the Freedom of the Press Foundation shared his views on the promise of the new technology and issued a clear warning about the dangers of a world devoid of economic privacy with respect for crypto .
Snowden, who made international headlines when he leaked classified National Security Agency documents describing surveillance practices for U.S. citizens in 2013, described Bitcoin’s public nature as a “core flaw” and said the main reason it could fail is because it is not private. . . “It fails as an electronic cash system because cash is largely meant to be anonymous,” he said, referring to the Bitcoin Whitepaper (Satoshi Nakamoto famously referred to Bitcoin as “a peer-to-peer electronic cash system.”)
Although he said he saw problems with Bitcoin’s general ledger, Snowden emphasized that he was “very much a fan” of the technology and made a comparison between gold and cryptocurrencies, noting that the boundless nature of Bitcoin and crypto is more general. ” an amazing thing “. “Shortly after the discussion, Snowden left and tweet describes gold as “Bitcoin that cannot be sent over the Internet.”
Gold is just bitcoin that cannot be sent over the internet.
– Edward Snowden (@Snowden) June 11, 2022
He also name-checked several other innovations in the cryptocurrency field, including the privacy coins Zcash and Monero. Snowden recently revealed that he was involved in creating Zcash under the pseudonym John Dobbertin, and during the discussion he said that he was “really impressed” with the technology with zero knowledge when he read the white paper.
Crypto as money
Snowden elaborated on his views on the promise of crypto-technology, adding that many cryptocurrencies are “closer to money” than currencies. “People do not understand the difference, but money is a thing of value, a symbol that can be exchanged that is not independently controlled by any central government,” he said.
He also warned about the dangers of financing the crypto industry. He said that the space was increasingly divided “due to the financing of cryptocurrency” and suggested that he thinks users do not focus enough on the technology itself.
“[Users are] not primarily thinking about which networks will serve us for 100 years to transfer values, he said. “I’m worried about a world where our money is being used against us.”
Snowden said he hopes to see people gain access to “free money in the sense of independence.” In what can be interpreted as an approval of the broader cryptoecosystem instead of a specific asset, he suggested that having more assets that could function as money was a good thing for the world. “I think the more competition we have there, the better,” he said.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
