Governments are attempting to recreate the success of bitcoin and decentralized cryptocurrencies like Ethereum with the development of permissioned ledgers and state-owned digital currencies.
Unfortunately, for governments, centralized cryptocurrencies and permissioned blockchain networks will not succeed and ever secure a fraction of bitcoin’s user base for a simple reason: the lack of decentralization and a peer-to-peer protocol.
Myth of Blockchain
Over the past 12 months, blockchain technology has been marketed as a magical technology behind bitcoin that allows any banking system or financial network to achieve the same level of immutability of bitcoin. However, that has evidently been falsified in the past year, given the lack of success by the blockchain industry in commercializing the so-called “permissioned ledgers.”
Like engineers cannot attach the identical engines used to build high performance aircraft to automobiles because of the incompatibility between the two technologies, blockchain technology behind bitcoin and other public cryptocurrencies like Ethereum cannot be integrated into centralized banking systems…
Read Full: Government Cryptocurrencies Won’t be Able to Compete With Bitcoin