Monday, July 02, 2018 by Ethan Huff
Just recently, the U.S. Securities and Exchange Commission (SEC) created a new senior position, the responsibilities of which include better regulating initial coin offerings (ICOs) and other cryptocurrency-associated financial instruments. It’s a move that some experts say will ultimately help the cryptocurrency world to become more established and legitimate in the eyes of the public – but is this good news for legacy cryptos like Bitcoin?
Not necessarily. While an improved regulatory framework will more than likely help cryptocurrency technologies at large to flourish, earlier rollouts like Bitcoin could end up biting the dust in the process. That’s because the train has already left the station, meaning newer and better cryptocurrencies are already gearing up for release within this new paradigm, just as the future of older ones like Bitcoin remains uncertain.
Most financial experts seem to agree that cryptocurrency is here to stay. But they’re just not as certain about Bitcoin, Ethereum, and others that still function using antiquated and highly inefficient platforms. Bitcoin, for instance, is already sucking up as much energy as entirely developed countries – and with no end in sight.
At the same time, Bitcoin can be upgraded and improved, which is why it’s really a guessing game at this point as to what might happen in the future. There’s no question that Bitcoin remains the world’s leading and most well-recognized crypto – the token where it all started. But will it stay that way as mega-corporations begin to release their own versions of the technology?
“… there are too many mega-corporations that have been investing heavily in their own blockchains and distributed ledger technology (DLT), and those companies have far too much political clout to be shut down by the SEC,” writes Simon Black for The Daily Bell. “If anything, that’s the real threat to most of the tokens and cryptocurrencies that exist today– the rapid advancement of the technology itself.”
It’s really all about scalability and functionality, particularly with large numbers of people using the digital token. And this is where Bitcoin lacks the most, seeing as how it’s blockchain setup can only process a handful of transaction per second, as opposed to the tens of thousands of transactions that VISA and Mastercard can process per second at point-of-sale (POS) systems all around the world.
It’s a lot like how AOL and Netscape dominated the internet market back in the early 1990’s when the World Wide Web was still in its infancy. The “10 free hours” for dial-up service disks that used to arrive in people’s mailboxes on the weekly were all there was to connect to the web – and, boy, how things have changed since.
While they’re now generally regarded as internet relics, AOL and Netscape are where it all started for most everyday users. And Bitcoin is similar, say some, as it will likely be remembered as the crypto where it all started, only to fade into the background as improved technologies are released in the future.
“From a technological perspective, Bitcoin is in the Digital Dark Ages,” Black explains. “And it’s hard to imagine that the least efficient technology in the sector will forever continue to be the most valuable.”
And it’s not just Bitcoin that could disappear, but possibly all of the cryptos with which most people today are familiar. The technology is evolving so rapidly, in fact, that whatever takes the place of these existing coins might look completely different – and might not even be attached to a digital “coin” at all.
For more news on the developments taking place with Bitcoin, visit BitRaped.com.
Sources for this article include: