Alapt

Cryptocurrency news

Vitalik Buterin: "bitcoin was created as a currency, not digital gold»

Vitalik Buterin: “bitcoin was created as a currency, not digital gold»

Ethereum co-founder Vitalik Buterin said that bitcoin cannot be “digital gold”, since it was originally intended for making P2P payments.

Buterin argued with Blockstream employee Zack Voell, who tweeted that bitcoin “was, is, and will always remain digital gold.” In response, Buterin countered that he entered the world of bitcoin back in 2011, when the main focus was on making peer-to-peer payments, and the other characteristics of this cryptocurrency were in the background.

In support of his words, Buterin attached the Bitcoin White paper published by Satoshi Nakamoto in 2008, which indicates that bitcoin was originally intended as peer-to-peer electronic money. According to the first line of the document, bitcoin is a P2P version of electronic money that will allow you to make online payments directly from one party to the other, without involving financial institutions and other intermediaries.

This discussion is driven by the fact that P2P money and digital gold differ significantly from each other. First of all, gold reserves are limited, the” heaviness ” of gold does not allow it to be quickly moved and divided into parts, and the metal is practically useless for micropayments if transactions are not controlled by a centralized network of banks. In this scenario, you can’t avoid high transaction fees. On the other hand, P2P money allows you to make payments between two parties without intermediaries.

Such “philosophical reflections” led to disputes about the size of the Bitcoin block. The refusal of Bitcoin developers to increase the block size in order to scale the network resulted in an increase in transaction fees and led to the creation of a new Bitcoin Cash blockchain. Given The high bitcoin fees that are inherent in “digital gold”, Buterin recommended that people use another cryptocurrency that is more suitable for daily payments.

Recall that yesterday, Buterin said that the developers of Ethereum 2.0 plan to launch multiclient test networks by the end of April, and recently presented a new roadmap for Ethereum 2.0, the key idea of which was polynomial obligations.