Bitcoin has been making headlines for a while as a secure and anonymous cryptocurrency, and even more so since the collapse of Bitcoin exchange Mt. Gox.
Mt. Gox was hacked and lost millions of dollars held by its customers, and although it is seen as more of a human resources and cybersecurity issue, than one affecting cryptocurrency as a whole, Bitcoin’s current weaknesses became apparent as a result.
The panel, made up of Alex Mason, who leads Baker Botts’ technology practice, Bradley Rotter from Rivitz, and Allegis Capital managing director Bob Ackerman, had several interesting observations about the cryptocurrency’s weaknesses and what it could become if it manages to overcome them.
The panel stated that Bitcoin could be as close to a perfect currency as the world has yet seen, but is still far from optimal. Transactions are not insured, and the technology also needs to be easier to use, more transparent and trustworthy to the average consumer.
Bitcoin’s greatest technological marvel is the blockchain, the calculations that happen in the background and provide a permanent and immutable record of all transactions.
The blockchain has enormous potential for decentralised information, and could become the internet protocol for all kinds of transactions.
The panel noted that perhaps the greatest hurdle Bitcoin is facing is the status quo, which stands to lose hundreds of billions of dollars if it loses the ability to charge transaction fees.