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Bitcoin [BTC] needs to convince nations that adoption rewards outweigh risk of attacking BTC, claims analyst

Biraajmaan Tamuly

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Bitcoin needs to convince Nations that adopting it outweighs the risk of attacking it, claims Brandon Quittem
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Bitcoin [BTC] does not have a physical form, making the virtual currency both an efficient and vulnerable asset. The vulnerability and security aspect of Bitcoin has been debated in the past, with many speculating what would happen to it in the face of a nation-state level attack that could possibly jeopardize the network.

Previously this year, rumours surfaced that the Chinese government may decide to launch a 51% attack of Bitcoin, fueling questions of whether the blockchain network will demonstrate resilience or not.

Brandon Quittem, a cryptocurrency consultant and analyst, recently shed light on this matter and claimed that it would be next to impossible to launch a nation-state level attack against the Bitcoin [BTC].

Quittem explained that “Bitcoin was un-regulatable,” as every other country had separate jurisdictional norms. Further, the fact that code is fundamentally a mode of free speech makes the virtual asset free from the control of one individual or a group.

He also suggested that the PoW mechanism protects the Bitcoin ledger with an “energy shield.” He added,

“By anchoring Bitcoin to real economic value [energy], the only way to change the ledger is to “re-do all the work” aka spend the same amount of money in the form of electricity.”

He also said that Game theory would protect Bitcoin from such a large scale global attack, since miners would be incentivized to be good actors on the network. Further, Quittem stated that it was “unlikely” that major countries would come together to launch an attack since nations usually competed with each other.

He said,

“If the US bans BTC, China has incentive to adopt. Nations not benefiting from the current USD regime have incentive to adopt BTC.”

Quittem added that privacy improvements in Bitcoin’s network would reduce taxability and would minimize the ability of government to initiate “an attack  via tax legislation.”

The Twitter thread caught the community’s attention, with Twitter user, @b_vangogh, commenting,

“I think we are theorizing a bit too much. We must understand that even though crypto might undermine institutions and gov’ts, nothing will work if there is no synergy between all parties. Crypto cannot survive without the necessary framework that the traditional supplies.”

Quittem responded and stated,

“Bitcoin needs to convince super powers that the reward of adopting it outweighs the risk of attacking it.”





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Bitcoin

ErisX goes all hands on deck to launch a Bitcoin Futures market

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ErisX goes all-hands on deck to launch a Bitcoin Futures market
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ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.





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