The blackout in Venezuela caused a drop in the total volume of Bitcoin traded and according to some reports, these volumes fell by 40%. Citing this development, Frances Coppola claimed Bitcoin and its industry would be crippled without electricity.
Known for criticizing cryptocurrencies, Coppola has also invited a lot of rebuttal from the XRP army for her criticisms.
Frances Coppola tweeted,
This is the problem with using Bitcoin. It needs electricity. https://t.co/vjpFKDOf4v
— (((Frances Coppola))) (@Frances_Coppola) March 16, 2019
Bitcoin and other cryptocurrencies need the Internet. This implies they need electricity, without which, the transfers wouldn’t happen. Blockstream launched a satellite recently to ensure that the Bitcoin network stayed alive, even during massive blackouts, and to protect it from governments trying to bring the BTC network down. This satellite is meant to allow Bitcoin transactions to go through, without the use of the Internet.
Alex Gladstein, a Twitter user commented,
“Satellite (@Blockstream) and mesh networking (@gotenna) and offline transaction (@SamouraiWallet) advances will make Bitcoin more robust than the existing financial system. That aside, how is electricity is a problem? Consider the pre-car, pre-hospital, pre-washing machine era.”
Another user, @notgrubles, tweeted,
“Show her my setup / tutorial. It’s completely battery powered and can send and receive BTC during Internet and power outages. I can’t show her since she’s blocked me.”
The CEO of Blockstream, Adam Back, who helped with the launch of the satellite, tweeted,
"I generated an offline transaction with my satnode, signed it with a hardware wallet, and broadcast it to my local mesh network. The transaction was included in a block, beamed down from space, and my satnode verified it. Electrum Wallet displayed the transaction as confirmed!" https://t.co/UC5TOv9uLq
— Adam Back (@adam3us) March 17, 2019
The blog by @notgrubles explained the simple steps required to send BTC without the use of the Internet. The transactions can be broadcast using SMS by mesh networking devices. GoTenna is a type of mesh networking device that can send BTCs with the help of the software, TxTenna.
Blockchain and cryptocurrencies remain nascent technologies that need time to mature and use cases to present. The tweet by Coppola received backlash from Bitcoin enthusiasts.
@kyletorpey, a writer, commented,
“Good thing the legacy banking system runs on unicorn farts. Would be fine when the electric grid goes down.”
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