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Bitcoin “Is Failing as an Digital Money System”: Edward Snowden

Key Takeaways

  • Edward Snowden has mentioned that he’s “very a lot a fan” of Bitcoin, however he thinks that its lack of privateness may imply it fails in the long run.
  • The American whistleblower mentioned that there are a number of crypto belongings that may be considered cash akin to gold quite than currencies.
  • He added that he thinks competitors between cryptocurrencies is a internet optimistic for the world.

The American whistleblower has expressed his considerations in regards to the financialization of the crypto house, however added that he sees large promise within the expertise. 

Edward Snowden Talks Bitcoin

Edward Snowden says he believes within the crypto motion, however he thinks there are some main hurdles to deal with over the approaching years. 

Talking in a digital interview at Consensus 2022 in Austin right now, the American whistleblower and President of the Freedom of the Press Basis shared his ideas on the promise of the rising expertise and issued a transparent warning in regards to the risks of a world devoid of economic privateness with respect to crypto. 

Snowden, who made worldwide headlines when he leaked labeled Nationwide Safety Company paperwork detailing surveillance practices of U.S. residents in 2013, described Bitcoin’s public nature as a “core flaw” and mentioned that the most important cause for why it may fail is as a result of it’s not non-public. “It’s failing as an digital money system as a result of money is essentially meant to be nameless,” he mentioned, referencing the Bitcoin whitepaper (Satoshi Nakamoto famously touted Bitcoin as “a peer-to-peer digital money system.”)

Although he mentioned he noticed points with Bitcoin’s public ledger, Snowden clarified that he was “very a lot a fan” of the expertise and made a comparability between gold and cryptocurrencies, noting that the borderless nature of Bitcoin and crypto extra broadly is “an astonishing factor.” Shortly after the dialogue, Snowden posted a tweet describing gold as “Bitcoin that may’t be despatched over the Web.”

Gold is simply bitcoin that may’t be despatched over the web.

— Edward Snowden (@Snowden) June 11, 2022

He additionally namechecked a number of different improvements within the cryptocurrency house, together with the privateness cash Zcash and Monero. Snowden not too long ago revealed that he helped create Zcash beneath the pseudonym John Dobbertin, and in the course of the dialogue he mentioned that he was “actually impressed” by its zero-knowledge proof expertise when he first learn the whitepaper. 

Crypto as Cash 

Elaborating on his views of the promise of crypto expertise, Snowden added that many crypto belongings are “nearer to cash” than currencies. “Individuals don’t perceive the distinction however cash is a factor that holds worth, a token that may be exchanged that isn’t independently managed by any central authority,” he mentioned. 

He additionally warned of the risks of the financialization of the crypto trade. He mentioned that the house was turning into more and more divided “due to the financialization of cryptocurrency” and hinted that he thinks customers aren’t focusing sufficient on the expertise itself. 

“[Users are] not pondering primarily about what are the networks which might be going to serve us for 100 years for transferring worth,” he mentioned. “I’m anxious a couple of world by which our cash is used towards us.” 

Snowden mentioned that he hopes to see individuals get entry to “free cash within the independence sense.” In what could possibly be interpreted as an endorsement of the broader crypto ecosystem quite than anybody particular asset, he urged that having a number of belongings that might act as cash was an excellent factor for the world. “I feel the extra competitors now we have there, then all the higher,” he mentioned.

Disclosure: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies. 

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