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Bitcoin Has Failed, Says One of Cryptocurrency’s Developrs

Bitcoin, often called the first cryptocurrency, has dominated the public attention for the past couple of years. The decentralized “internet money” had many supporters as well as critics.

This week one of bitcoin’s developers and its ardent supporters Mike Hearn posted a lengthy post on Medium, saying he is saddened to admit that the cryptocurrency has failed in his view.

“Despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly,” the developer writes.

From the start, I’ve always said the same thing: Bitcoin is an experiment and like all experiments, it can fail. So don’t invest what you can’t afford to lose.I’ve said this in interviews, on stage at conferences, and over email. So have other well known developers like Gavin Andresen and Jeff Garzik.

Hearn says the currency is being dominated in the hands of few, even though the idea behind bitcoins was to create a currency free from any type of central bank or regulatory body.

Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have broken down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system.

Read the developers full post here.