U.Today - As summer steps into its final month the largest cryptocurrency on the market Bitcoin (BTC) enters the centre of discussion among financial experts. So a new occasion was the recent statement by David Schwartz, the CTO of Ripple, drew attention to the unique advantages of bitcoin, which give it a special beauty according to the famous cryptographer.
The recent news that the cryptocurrency could be used by the US Federal Reserve as a reserve asset has sparked discussion. As you know, Senator Lummis has proposed a bill to create a strategic reserve of the main cryptocurrency, involving the purchase of 1 million BTC for five years and their storage for at least 20 years. This could reduce the national debt, the Senator believes.
The field of debate as usual has split in two. While Bitcoin bulls are jubilant and talk about the inevitable success of such a decision, some critics believe that BTC is too volatile as a reserve asset and impractical for everyday use. The latter argument stems from doubts about the cryptocurrency's ability to serve a growing number of users, especially in light of rising transaction costs.
Beauty of Bitcoin
Schwartz, a leading cryptography expert and one of the architects of the first prototypes of decentralised registries, parried the argument that Bitcoin is particularly flexible in processing transactions. He noted that users have the choice to conduct transactions directly through the blockchain or use alternative methods that may be more suitable for their needs.Ripple's CTO cited the basic wisdom - blockchain, being a decentralised registry, provides a basic level of reliability and transparency. But sometimes centralised systems can process transactions faster and cheaper while maintaining security. The choice here, is entirely up to the user.
Bitcoin can be used in different ways, depending on what the user needs, Schwartz's statement suggests. The fact that it can be used for secure record keeping using blockchain and more efficient transactions using centralised systems sets it apart from other assets. And that's the beauty of it.