Just when the price of Bitcoin
is picking back up, it has come under threat from the US Federal Reserve system, because of a lack of transaction transparency.
Mr Chiavarone said that the US Federal Reserve is at risk of killing Bitcoin, unless more is done to further develop the blockchain. He said;
“The currency itself isn’t a great medium of exchange, it’s not a great store of value. It has a fixed amount so the Fed would have to kill it at some point because they wouldn’t be able to engage in monetary policy…They can’t increase or decrease the supply of it. But blockchain behind it, we think is more real than people are giving it credit.”
The blockchain allows the transmission of digital information but blocks any attempts to copy the data; and developing this could make cryptocurrency trading far more transparent. This in turn would ease Governments’ fears and possibly reduce volatility in other cryptocurrencies.
He went on to say;
“If the first version of the internet was an internet of information, blockchain is an internet of value. It allows for the digital transfer of files in a way that’s verifiable. It digitises trust…That – forget about currencies – could be revolutionary for supply chains…pets.com was the first real online commerce company – there was a lot of buying into that because people saw the value of online shopping – pets.com wasn’t the best version…We think Bitcoin is the pets.com of the blockchain.”
Bitcoin was first mined back in 2009, it was the first cryptocurrency to burst onto the scene, and since then the most popular virtual currency has seen the value surge, and reach an all time high of nearly $20,000 back in December of last year. The price volatility has caused some investors to opt-out of the popular crypto-currency market, and instead invest in gold.
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