Discussions between the US Senate and fought in the absence of the leaders, there is little in common. However, what appeared October 11, 2018 in the Council of the Senate in accordance with the issues of banking, housing and communal services, it was like a spectacular sporting event.
Senators have acted as intermediaries in the subject Battle “cryptocurrency and blokcheyn: in reverse.” 2 competing parties with opposing views on a variety of the problem were in different corners of the ring. On the security side kriptoindustrii was Peter Van Valkenburg, director of research at Coin Center, and nizkoemotsionalny powerful speaker. Opponent was the extraordinary “doctor thought”, Doctor of Economics from the New York Institute Nouriel Roubini, who recognized the harsh news for the digital industry and a series of violent tweets on this subject, in which he almost broke the adherents cryptocurrency and blokcheyna. Recall that Nouriel Roubini has deservedly received the name of a professional in the field of the economy mainly due to the rapid collapse of the real estate market omens in 2008.
Agenda for the meeting
Chairman of the Board Mike Crapo, Senator from Idaho, opened meeting statement on the status of Bitcoin unique in the annals as the main numerical property, but it highlighted the negative aspects of a conditional SCR, which include increased volatility and adjustment difficulties.
Sherod Brown of Ohio upheld suggestive remark colleague that, in spite of the tenth anniversary of the appearance of Bitcoins, kriptoprostranstvo still rife with fraudulent means, while a large utility conditional SLE absent.
arguments of the parties
The Senate committee listened to the professionals.
“The doctor thought” prepared some messy report 30 pages. In addition to the crowd derogatory definitions (it is possible that the senators first heard this definition as “shitkoin”), Roubini operated on several theses, repeating them like a mantra. He swore that kriptoaktivy just fall after a sharp decline in prices compared with the 2017 year-end, 80% ICO-probably nothing else as a scam, and digital coins will never be a real hard currency, since they do not have any chance to work in the property one account, payment method or deposit box.
“99% of all cryptocurrency not have an impersonal code or impersonal values. And including the so-called stablecoins, such as Tether, have only selectively, in the best case, US dollars in aid. Or rather, impersonal approach as an appropriate audit has never been , “- said Nouriel Roubini.
The prevailing assumption that the value of the centralized payment systems until blokcheyna. A certain amount of time, “the doctor thought,” confirmed that Bitcoin-circuit capacity is only 5 transactions per second, while Visa is able to produce 25 000. The rest of the attack contained in the fact that Bitcoin for transactions using only the law-abiding criminals and thugs, and mining in general is considered a “natural tragedy.” And the revolution taking place in the field of financial services, has nothing to do with blokcheynom.
And, finally, distributed registries, too, have their own series of hits. According to the doctor, probably no more than a well-known base of these technologies, and they do not have any relation to the blokcheynu.
Peter Van Valkenburg
Immediately after the mad complaints Roubini concert of Peter Van Valkenburg was completely brainwashed. Crypto-protector decided in any case not to overload the senators and intended a huge share of its own delay to explain that it is Bitcoin, that it is almost ready, and why it is revolutionary. “In contrast to the available funds, which operate only face to face, bitcoin is probably the 1st available fund in the world. It is still not perfect and unstable, but it works. As in the main years of the Internet, the development is still is full of shortcomings and deficiencies, but probably in any case is not considered grounds for rejecting it, “- Van Valkenburg said.
“Itself a precedent that bitcoin works on a distributed basis, elementary cool. Perhaps a breakthrough in computer science is just as fundamental to the will and well-being of the world’s population, as well as the emergence of the Internet. Then Van Valkenburg announced that Bitcoin is to be taken as its infrastructure is becoming stronger and stronger, and that perhaps blokcheyn not yet ready to answer all questions, but probably, “Faith is our best.”
The entire sphere of human interaction riddled municipal or collective checkpoints. Just as the Internet has disabled the control points from the sphere of circulation, Hope blokcheyna is to do away with the centralized fault spots, which are now inherent in almost all the nuances of interaction, such as currency transactions systems.
Huge private companies are increasingly vulnerable to security-nicks hackers exposed medications banks and foundations of the individual operations. Formation of Internet of Things makes these challenges even more severe. According to Van Valkenburg, no massive infrastructure should not be completely centralized and have a vulnerable site. To eliminate these risks requires a political figure of the “tone of decentralization.”
Question for professionals
Mike Crapo for the first time raised the question of what types of kriptorynkov there in the near future and the necessary criteria for their stabilization.
Van Valkenburg: highest volatility arises from this, like bazaars difficult to find the extent the fair value for something completely fresh, radically destroying the old. However, this does not in the least institutional funds that are very close to the market a certain stability. For them it was advantageous to create stabilizers, and if the SEC will go further and allow the funds to do numerical assets, the market will be the most optimal.
Roubini: cryptocurrency considered neither dispersed nor scalable or non-hazardous. The arguments are the same-wide distribution oligopolies, low bandwidth transactions, the lack of protection for players.
– Insisted Michael Crapo, knowing that he interferes with the formation of the fastest add-ons to disperse computing developments.
Van Valkenburg: electrical post office appeared in 1972. And only 20 years later, she entered the mainstream.
Roubini: no guide, no company in any case will not use dispersions. The idea of decentralization is probably nonsense.
Senator Brown asked if supplements based on blokcheyne for the masses there, and asked to draw a portrait of conventional cryptography.
Roubini: blokcheyn is vain development. Paypal payment system type, China WeChat Pay and African M-Pesa Paypal-a real revolution. A cryptosystem only lose users. Electrical post office, ten years after the introduction of closer used billion and kriptorynok currently covers only 22 million.
Van Valkenburg: normal cryptographer – a young man with industrial skills. However, perhaps not the most-the most fundamental issue right now. The main theme – how to protect crypto-player. FinCEN (unit in accordance with the fight against offenses in the monetary sphere) is preparing quite a lot in this direction. But there is a big minus, no federal licensing system. Management should cancel delema as soon as possible.
Senator John F. Kennedy of Louisiana asked to bring proof that the world has become the absolute after nucleation of blokcheyna and numerical SLE.
Van Valkenburg: in Afghanistan, a state in which the ladies did not serviced benches and do not have their own unmanaged representatives of the stronger sex-relatives drugs, only through economic independence cryptocurrency ladies became probable.
Roubini: blokcheyne to no good, and cryptocurrency lacking. Bitcoin is far from the centralized payment systems, with its capacity of 5 transactions per second. A concentration of the miners in the Russian Federation, China, Georgia and Belarus hides the danger of oligopolistic superiority of these states and blackmail coming from them, according to the US News.
Van Valkenburg: payment systems such as WeChat Pay, highly centralized and dependent on the country. All these rules are under the control and management of fueling the threat of at least some episode. Probably, this vehicle for the totalitarians.
Senator ACPC Jones of Alabama is concerned, as the “bad people”, and fraudulent powers have all chances to apply the decentralized nature of public platforms based blokcheyna for selfish purposes.
Van Valkenburg: any noble development, especially in the early stages of development, operated by shady characters. If this is probably not the case, it is possible that the development can be very helpful in any way. US law enforcement agencies have extensive experience tracking improper operations on the basis of the disclosed inventories.
Roubini: ring-perhaps maliciously.
Senator Elizabeth Warren (Massachusetts) raised the question of how the theft was likely a total of $ 1.1 billion in the 1st half of 2018 and how it was possible to prevent fraud with 80% of the plans for the main deployment of tokens.
Van Valkenburg: most of the stolen drugs are dark altkoinah inherent in foreign exchange, which were unable to improve their own security system to the extent necessary. If the ICO is concerned, the proper protection against fraud will be the identification of the original tokens with significant securities and suitable embodiment of all significant superiority appeal of the securities.
Chris Van Hollen of Maryland rushed straight to Roubini, the issue of conditional universal positions and close opportunities for the formation of the American economy.
Roubini: there are insufficient grounds for optimism – the restoration of the American economy stalled in 2020.
At the end of the debate, Senator Catherine Cortez Masto asked whether there is any place in the Bitcoin protocol, which allows you to track payments in a particular area, such as human trafficking, drug trafficking, money laundering.
Van Valkenburg: the responsibility for this lies with the development blokcheyn platforms and law enforcement. However, policing fails, if not globally approved a set of leaders will be determined. You need a single sign-on and a political figure “know your buyer” (KYC).
Roubini: none severe management or the company does not entrust the secret information disclosed, inefficient, dispersed system in any way. Perhaps all this is nonsense. No additions to the successful development of blokcheyna will not.
At this meeting, the presiding officer Mike Crapo senators proposed to postpone the discussion and to prepare the final questions to the professionals in a week after the deepest immersion in the topic being discussed.
In general, the behavior and reasoning Peter van Valkenburg, the main research center of the coin, were greeted most favorably, with the exception of long-winded, sensible things, “the doctor thought.”