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Aleksey Muratov: Fork of Bitcoin is attack of confidence on blockchain by the world's financial elites

The world's financial elites can stand for people who are trying now to make a hard fork of Bitcoin and commit an attack of confidence on cryptocurrency.

It was stated by Chairman of the Board of the International Public Movement Change the World Together Aleksey Muratov at CWT conference in Pretori (RSA) which was held on Friday, March 24.

As Aleksey Muratov emphasized, during the first conference in Pretori he had not only to present the International Movement Change the World Together but also to answer the current questions which concern possible changes in the world of blockchain.

In particular, as a blow to blockchain technology can lead to discrediting the whole idea of cryptocurrency decentralization. "The value of cryptocurrency was that it could not be falsified, it was impossible to increase the number of units. But the processes that we are watching now, including the possible fork of Bitcoin, can be characterized as an attack of confidence on cryptocurrency and the idea of decentralization of the world financial system. Who stands for this attack? I am sure that these are quite large players capable of inflicting a huge, if not fatal harm to Bitcoin, by destroying public confidence in its scarcity and possibility of falsifying by unrestricted emission," Head of the Board of CWT specified.

Aleksey Muratov noted that the success of any currency depends, first of all, on public confidence in it. "This also applies to fiat money, where such confidence in the currency is a reflection of the belief in a state that must maintain the value of its money. The struggle for confidence in Bitcoin is especially difficult now, since it is not declared as the money of any government. Therefore, at the moment Bitcoin is much more dependent on the trust of each user than any other currency in the world. We appreciate the trust of every person who came to the understanding that Bitcoin can not be falsified, deficient, decentralized and capable of maintaining its value due to this. That is why, the "scarcity and decentralization" of cryptocurrency is the most important indicator of public confidence in it," explained he.

Speaking of how Bitcoin’s credibility can falter at the moment, Aleksey Muratov recalled that there was a situation where hard fork of this cryptocurrency could happen, dividing it into two versions. ʺI have already said that Bitcoin hard fork on Bitcoin Unlimited can occur in the near future. Developers say that the cause of the division is an attempt to resolve technical problems. But what happens after hard fork? Instead of 21 million units of Bitcoin, they will be twice as many as 42 million, that is, 21 million of new and 21 million of old ones. And what could prevent them from doubling again in a week? In other words, Bitcoin hard fork can completely discredit the idea of a lack of unlimited emissions, the price of Bitcoin can drop significantly and people will lose confidence in the cryptocurrency and blockchain technology,ʺ he said.

Aleksey Muratov also explained for who and why it was necessary to discredit blockchain technology. "In fact, Bitcoin hard fork is not only a trust attack, but also an attempt to take control of it. Initially, we assumed that the Chinese government was behind this and there was a lot of evidence in favour of this version, such as a monopoly on mining equipment and the control of the servers based on them. First, the Chinese had mined for half a year using their own equipment and, half a year later, they did not sell it but rent it to the third countries, maintaining its location on the Chinese territory. But it is quite possible that the world's financial elites are true masterminds of Bitcoin hard fork in order to take control over it and carry out a trust attack. The world's financial elites have no nationality and they control the planet as if it were their own property. They have ruled for more than a hundred years issuing banknotes through the US Federal Reserve System. And now, when the US FRS has discredited itself, the financial elites can easily move into the Chinese territory and establish emission centres there. And their main purpose is to hit the decentralization of the cryptocurrency, as the future world financial system, and to take it over,ʺ Chairman of the Board of CWT said.

Aleksey Muratov refers to the use of correct technologies as a possible way out from the current critical situation. ʺCurrently, money bags have built mining farms and actually gained control over Bitcoin, knocking simple participants out of the mining process with their small mining capacity. The increase in mining capacity has led to the centralization of the system and moving away from the original idea of decentralization. Today, leading players have all servers and more than half of them are in China. And who has more than half the assets makes rules. Therefore, in order to save cryptocurrency it is now necessary to solve problems not in blockchain technology, but in Proof-of-work system, the principle of which is to use hashing, which results in the duplication of cryptocurrency, that is, in hard fork. To date, Proof-of-work technology is a dead end. The future of blockchain and cryptocurrency lies with the Proof-of-stake technology, which method is based on the need to prove that a certain amount of funds is stored in the account. When using PoS, new units of cryptocurrency are created only for existing units and are distributed decentrally to a large number of participants in many countries of the world. This gives equal opportunities to users to participate in mining (creation of new units) and to retain control over blockchain by the largest possible number of users. Such technologies will help us to reflect the trust attack on the idea of a decentralized world financial system based on cryptocurrency and blockchain technology. And Bitcoin is already lost as a decentralized tool,ʺ Chairman of the Board of CWT Aleksey Muratov summed up.

Source: CWT News

  • March 29, 2017 12:34 PM MSK