A group of computer experts has signed a letter urging US Congress to resist the effects of crypto space and implement industry crackdowns, the Financial Times. report..
The letter presented cryptocurrencies as a means of “unhealthy and speculative investment,” and further argued that blockchain technology was useless for practical purposes.
Some of the letters say:
“Resisting pressure from financial firms, lobbyists and boosters in the digital asset industry to create a safe haven for these risky, flawed and unproven digital financial products. It is recommended.”
Microsoft engineer Miguel de Icaza, one of the signers of the letter, said the computing power required for blockchain technology could be centralized on a $ 100 computer.
In his words
“Computational power is comparable to what you can run centrally on a $ 100 computer. You’re basically wasting millions of dollars worth of equipment because you decide you don’t trust your banking system.”
Bruce Schneier, a teacher at Hubbard, another signer of the letter, declared that the claims made by blockchain supporters were not true. According to him, the system was not protected or decentralized before adding it:
“A system that forgets passwords and loses lives is not a secure system.”
The group’s letters were sent to the majority and minority leaders of the Senate, as well as other Senators who spoke in favor of cryptocurrencies, such as Senator Patrick Toomy and Senator Ron Wyden.
On the other hand, this is not the first time the crypto industry has elicited negative complaints from the general public. Celebrities like Senator Elizabeth Warren and global financial regulators have warned several times about the risks associated with the crypto industry.
Cryptographic experts disagree
Cryptographic stakeholders have expressed opposition to the views shared by technical experts.
According to Brian Ritchie, CEO of SIMBA chains, blockchain technology is helping to introduce new concepts into the financial and other industries. He continued that while this technology is “still very complex in most cases,” it still has advantages because “data transparency and immutability” help ensure accuracy and streamline processes.
Another expert, Pete BoyleThe crypto industry
“A real chance … to bring financial services to those exiled by traditional financial institutions.”
