Cryptocurrency is useless to anyone other than nefarious groups or individuals trying to move money without being noticed by the government. This is apparently the cutting-edge opinion of Harvard University cryptographer and technology researcher Bruce Schneier.
Citing a series of regularly discredited and debunked talking points, Schneier believes that the aims of Bitcoin according to its original whitepaper have been defeated by the reality of its deployment, which means that in addition to being operationally difficult and risky, it also fails to deliver on its basic premise, which essentially renders it useless.Cryptocurrency: Can You Trust a Trustless System?
Writing in Wired, Schneier cites the trust issue as the biggest example of cryptocurrency’s basic failure. According to him, while it was created to provide a basis for electronic transactions without relying on trust, a critical look at the architecture of blockchain technology will show that it cannot function without trust — which defeats the whole purpose of having an uncontrolled system in the first place.
Crypto users have to trust that miners are following the right sequences to mine bitcoins then trust that the system won’t crash resulting in monetary loss. In actual fact, he says, all bitcoin has done is take trust away from humans and place it in technology whose security is also not guaranteed.
Expanding further on this point he says:“If your bitcoin exchange gets hacked, you lose all of your money. If your bitcoin wallet gets hacked, you lose all of your money. If you forget your login credentials, you lose all of your money. If there’s a bug in the code of your smart contract, you lose all of your money. If someone successfully hacks the blockchain security, you lose all of your money. In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expe...