Centrality CENNZ

$0.0368
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Centrality News

The Big Blockchain Lie? Unpacking Dr Nouriel Roubini’s take on Bitcoin and blockchain

If crypto needed a kick in the teeth to wake up, Dr Nouriel Roubini delivered. While he might be more famous for predicting the financial collapse of 2008, Roubini has in recent weeks taken to the press to argue against the development of blockchain technology, Bitcoin, Ethereum, and even Initial Coin Offerings (ICOs). At the Congressional hearing on Capitol Hill in Washington DC on October 11th, Roubini testified to US senators that cryptocurrency was “the mother or father of all scams and bubbles” - echoing the likes of other figures such as Warren Buffet and George Soros. Additionally, high-profile interviews on CoinTelegraph, as well as writing published on Project Syndicate, have seen Roubini declare his positionality. Roubini’s views are supported by a number of claims surrounding the blockchain industry. While many of them do have substantial merit, it’s also worthwhile to consider that cryptocurrency - as an emerging asset class and currency system - exists in relative novelty. In the wake of some of Roubini’s most recent remarks, let’s take the opposing view, and explore arguments as to why cryptocurrency might yet succeed. Centrality “There’s a lot of talk about decentralization: Miners are centralized as an oligopoly, coders are centralized, exchanges are centralized — as 99 percent of all transactions occur on a centralized exchange — and there’s a massive concentration of wealth. This is worse than North Korea in terms of income and wealth inequality... The reality is just the opposite: It’s a totally centralized system.” Centrality is (arguably) not a binary concept between the state of being ‘decentralized’ as opposed to ‘centralized’ - as recent interviews from Tone Vays, Jimmy Song, and Simon de la Rouviere perhaps demonstrate best, centrality more akin to a sliding scale - with some maximalists heralding Bitcoin as the gold standard (if you’ll pardon the phrase), while others allege that many altcoin projects require more time and exposure to become sufficiently decentralized. In that view, we have to regard Bitcoin as the most successful (and most decentralized) monetary system we have developed yet, where a distributed web of processing power forming consensus is the network authority. Coders committing improvements to Bitcoin or a range of other altcoin projects exist all over the world, decentralized exchanges have steadily shown growth, and while Bitcoin itself might have a terrible Gini coefficient (as a measure of inequality), it has been argued by the likes of Coinbase CTO Balaji S. Srinivasan that a totally new form of expression is needed to quantify decentralization in cryptocurrency networks. In the same way that other currency networks have grown, it’s further argued that solutions such as layer 2 scaling mechanics (such as the Lightning Network) will promote a further distribution of wealth as Bitcoin (in particular) moves from being a store of value to a true means of exchange. Mobile money There is already a revolution: there’s going to be much more competition, there’ll be much more access. If you are a poor farmer in Kenya today, you are using M-Pesa. On your little smartphone, you can make transactions, you can borrow and lend, you can buy and sell your goods and services, you have a whole slew of financial services without the brick-and-mortar bank. And all these things are available to billions of poor people in Africa. What [do] they have to do with blockchain or crypto? Nothing, zero. So, there is a revolution and it has nothing to do with blockchain.” Writing from South Africa, Roubini is right to say that mobile money platforms such as M-Pesa have cultivated immense support and have offered millions of Africans with an easy platform to trade, barter, and exchange goods and services with. What Roubini discounts, however, is that mobile money networks are tethered to fiat money in some of the most volatile markets around the world. While the African cryptocurrency revolution might just be getting started, we have already seen Bitcoin surge to premium prices in volatile markets such as Zimbabwe, with nations such as South Africa, Senegal, and other territories explore means to not only establish meaningful regulation around cryptocurrencies, but further explore their use cases for cultivating local markets, international remittances, and much more. In fact, cryptocurrency might benefit from the development of mobile money as a lynchpin of sorts to develop a system that is capable of operating at scale, has an easy-to-use interface, and can (most importantly) win over customers. Initial Coin Offerings “An academic study suggests that 81 percent of all ICOs were a scam to begin with; 11 percent of them have failed or have died; and of the remaining eight percent that is traded on exchanges, the top 10 have lost on average, in the last year, 95 percent of their value — more than Bitcoin. So, there was a bubble — and everybody was riding the bubble, everybody was issuing

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Centrality is the glue for the framework and is geared towar...

Centrality is the glue for the framework and is geared towards mass consumer apps - Aaron McDonald speaking at the... https://t.co/T65xGx5Cm0...

8 days ago

Should we care about blockchain? The Centrality team sure th...

Should we care about blockchain? The Centrality team sure thinks so! We’re here with David Corbett, who heads up to... https://t.co/pPEzMeyUII...

a month ago


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