Bitcoin overview: Bitcoin is hopelessly useless - Bruce Schneier, Harvard University

  • Harvard professor criticizes the cryptocurrency as being totally meaningless.
  • BTC/USD is under pressure amid profit-taking.

Bitcoin is hovering around $3,600 handle, down 1.5% since the start of the day. The first digital asset retraced from the recent high of $3,707 late on Friday as speculative traders have been taking profits after a strong rally.

Meanwhile, the technology researcher and professor of Harvard University Bruce Schneier said that Bitcoin is attractive only to a small group of people who need to move money around without being noticed by the governments. Otherwise, the cryptocurrency is “hopelessly useless.”

To support his point of view he used well-known arguments. He said that Bitcoin was envisaged as a peer-to-peer payment system, but it failed to deliver on its primary premise, which rendered it useless and operationally defunct.

The expert emphasized that the safety and presumed trustlessness of the system are illusory.

“If your bitcoin exchange gets hacked, you lose all of your money. If your bitcoin wallet gets hacked, you lose all of your money. If you forget your login credentials, you lose all of your money. If there’s a bug in the code of your smart contract, you lose all of your money. If someone successfully hacks the blockchain security, you lose all of your money. In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expertise to audit?” he said.
 

BTC/USD, 1D chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.