Back in March when I recommended investing in Bitcoin (at the time trading at $90) I highlighted how disruptive the digital currency could become, and how Central Bankers would fight back to protect their monopoly on issuing currency.
Today Bitcoin is trading at $260 despite a very active smear campaign by various vested interest parties. The latest “flaw” has been discovered by Cornell University Scientists as trumpeted by the BBC. In their highly theoretical paper they surmise that a technical flaw in the Bitcoin mining process could allow dishonest mining groups to obtain a majority share of the currency. Prof Surer conjectures: “Once the system veers away from the happy mode where everyone is honest, there is no force that opposes the growth of really large pools that command control of the currency”
Alarming stuff! But wait a minute… isn’t the US dollar controlled by a small group of people? Why yes, it is controlled by the privately-held Federal Reserve – those wonderfully trustworthy banksters that have been doing so much good for the world in the past decade!
The chances of this flaw ever manifesting in Bitcoin is unlikely in this writer’s opinion. The irony is that if there was ever such an attack the unscrupulous group would likely be the Central Bankers themselves in a last ditch attempt to derail Bitcoin and preserve their monopoly. Even then, they would not be able to control the money supply to a fraction of the degree that they control the dollar. Maybe they could manipulate the Bitcoin market price at best (something they probably already attempting).
So when Prof Emin Surer loudly proclaims “Bitcoin is broken“, he really ought to ask himself “Compared to what?”