The analytical department of the Bank for International Settlements has put forward quite strict criticism in relation to some features of digital currencies and assets, stressing that they, in their current state, will not receive wide recognition.
Experts of the Bank for International Settlements also believe that bitcoin is not and will not be a substitute for money, this statement is supported by a rather long list of shortcomings, which reflects all the key disadvantages of the crypto giant, as well as its competitors.
However, statements from the Bank for International Settlements, which is the “central bank for all central banks,” were also met with criticism in the wider financial community.
Thus, Weiss Cryptocurrency Ratings, a project of a major analytical enterprise, Weiss Ratings, expressed disagreement with criticism from the Bank for International Settlements. The analytical company convinces that far from all criticism in relation to bitcoin and altcoins in the market is justified. According to the rating agency, cryptocurrencies can become widespread in the future, and make major changes:
“You do not need to bury the bitcoin prematurely,” says Weiss Ratings cryptanalyst, Juan Villaverde, answering criticism from the international bank.
“Instead, we need to pay attention to the relevance and try to understand the principles of the technology itself for combining information in the block, it’s about a more developed structure, about the technology of a connected list and an open database.
Never underestimate the work and talents of talented developers. It is worthwhile to open your eyes and see the benefits of a more inclusive and more democratic financial system. Only by opening ourselves and trusting in the new, will we truly understand the revolutionary nature of this technology?
Only then will its implementation not be a sharp jump, but will go smoothly, and it will not be a jump, but a transition to a new stage of evolution. If we completely closed to it, we run the risk of losing our chance to change the world forever. ”
Agency Weiss Cryptocurrency Ratings confirms the words that at the moment, cryptomarket is still too volatile, but this, in their opinion, is due to the scarcity of the client base. If the market “ripens”, and opens up to the majority, then we will be able to observe more smooth and measured price movements.
One of the internationally calculated bottlenecks of bitcoin noticed by the bank is the very mechanism of consensus of the token, which is too cumbersome and complex. In response, Weiss Ratings cited example systems and consensus algorithms for other crypto assets, such as NEO, or Cardano, where the consensus level is based on pre-defined rules.
The Bank of International Settlements also derogates the value of the cryptocurrency, arguing that no token has an internal value proposition. But this point was refuted.
Agency Weiss Ratings led to the example of Ethereum, which is a utility token, without which there would be no ecosystem of decentralized applications in the blockchain, and even the transaction system itself would cease to exist.
The bank of international payments also noted the high energy intensity of bitcoin:
“Private enterprises that are run by miners can use a computing power equivalent to millions of personal computers.” At the time of this report, the total energy consumption for mining bitcoin is equivalent to the cost of an average economic system like Switzerland, moreover, in addition to bitcoin, there are many other cryptocurrencies, which also consume a lot of electricity.
In other words, mass trust and even some obsession with decentralization can lead to a global environmental catastrophe. ”
To which Weiss agreed but noted that instead of bitcoin, you can use other tokens based on the system of proof-of-stake.
Naturally, many of the shortcomings of cryptocurrency actually take place, but there are a lot of tokens already present on cryptomarket, whose developers are trying to build a more elegant protocol.
Their systems are checked, and they achieve some success. Nevertheless, in the report of the bank for international settlements, there were indeed raised some serious shortcomings of bitcoin, which, however, is still the most influential crypto-active in the whole market.