The sophisticated and mysterious technology, blockchain has surprised the world within only a few years of its inception. The power of blockchain has empowered the cryptocurrencies to make transfers independently without the interference of banks or the government. In recent years, it has been backed by various industries as a resolve to address issues like fraud management, identity verification. However, despite getting a lot of hype, its use seems to have remained mostly theoretical.
The noted advocate and contributor of Ethereum Classic (ETC), Donald McIntyre has recently expressed his views on the blockchain. He believes that the current trend followed by the blockchain industry will not survive for long. The blockchain space seems to be already showing signs of becoming obsolete. McIntyre predicts that there will only be a few competing platforms and only the fittest in the industry will stay.
Price of Bitcoin rose to a high of $20,000 but came down drastically during the crypto market crash in 2018. Bitcoin price went further down to $4,000 only last year. This brought the entire blockchain industry under the scanner. Doubts emerged regarding the driving technology of cryptocurrencies that records transactions.
McIntyre feels exchange cost, security cost and coordination cost are the few reasons to be blamed for the extinction of some of the blockchains in the future.
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The security cost does not remain the same if the values are transferred using the Bitcoin blockchain or any other altcoin blockchain. Naturally, the industry would choose highly secured transfer for large amounts. The people who need highly secured transfers will choose the Bitcoin blockchain.
Sending and receiving values on the Bitcoin blockchain is high as storing the value in Bitcoin and transferring BTC on other low-cost blockchain and again getting it back to the Bitcoin network is not an easy job, claims McIntyre.
McIntyre believes that the other blockchain which is at par with the reliability and sustainability of Bitcoin is Ethereum Classic (ETC) because ‘when Ethereum migrates to proof-of-stake and sharding, ETC will be the only proof-of-work and Turing complete chain with a fixed monetary policy.’
Creating a vast number of other blockchains does not mean they will survive for a long time. McIntyre also feels that a human mind can remember a limited number of cryptocurrency names thus limiting the prices for those cryptocurrencies. If McIntyre speculations become real, then only the survival of three to four cryptocurrencies will be guaranteed in the future.
But according to some speculators, the future currency of the government is going to be virtual. As compared to traditional currencies, crypto assets are much efficient and require less settlement time. Financial inclusiveness is another benefit of the cryptocurrencies. The unbanked population of the world can get the benefits of the bank through Bitcoin and blockchain. They don’t have to rely on any centralized institution to obtain permission to open a bank account.
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The individuals all over the planet can purchase and sell cryptocurrencies in the open market, and many merchants have already started to accept cryptocurrencies for their services.
