What would import from Bitcoin and cryptocurrencies would be the blockchain, according to the economist.
Redrado considers bitcoin a “speculative asset only for experienced investors.”
The former president of the Central Bank of Argentina (BCRA), Martín Redrado, days ago published a tweet that caused numerous responses from users and scholars of Bitcoin (BTC). In his publication he made reference to the first cryptocurrency, but also to Ethereum and blockchains.
«Attention that the technology (blockchain) that supports the cryptocurrency Ethereum, [está] outperforming bitcoin. This is the key differentiating factor for the future ”, wrote the economist on September 4.
Thus, the politician who led the BCRA between 2004 and 2010, repeated a narrative that was frequent years ago: that what matters is not so much Bitcoin but blockchains as unitary technology. In particular, Redrado referred to Ethereum, a network described by its creator, Vitalik Buterin, as a “general-purpose blockchain.”
In response, who led the BCRA during most of the Néstor and Cristina Kirchner administrations, received messages from various bitcoiners.
For Franco Amati, one of the founders of the NGO Bitcoin Argentina, «blockchain yes, Bitcoin no», is a message that «delays at least 3 years». It is not the first time that the developer expresses himself in similar terms. CriptoNoticias reported that, in 2018, it had said that we should “stop using the word ‘blockchain'” and refer directly to the objective of the project.
Ethereum is “more centralized than the FBI”, responds a bitcoiner
Other criticisms Redrado received for his tweet were for your valuation to Ethereum. For example, for the finance specialist Adam dubove, Redrado’s conclusion that Ethereum is superior to Bitcoin is “logical for a central banker.” «He is more comfortable with the Proof of Stake (PoS) because it emulates a system that you already know and would allow you to control it. Bitcoin, no, “he explained.
The PoS, or “proof of stake,” that Ethereum will adopt when version 2.0 of the network is activated, will eliminate the need for mining (proof of work, PoW)In other words, the use of advanced computational resources and high electricity consumption to validate transactions and issue new currencies.
According to some critics, the absence of mining turns cryptocurrencies that use PoS into something more similar to fiat money, which can be issued at the will of whoever controls it. without consuming too many energy resources.
Specifically on Ethereum, Dubove wrote, as an answer in the thread that started with Redrado’s comment, that it is “more centralized than the FBI” And that comparing it to Bitcoin is “comparing pears to apples.”
As Dubove has explained on other occasions, “each of the design aspects of Bitcoin are due to security, decentralization and incentive reasons.” Instead, he looks to other cryptocurrencies, whose founders or some centralized entity has great influence on the project, with a high vulnerability to being attacked:
The companies or foundations that run other supposedly decentralized projects are a perfect target for sovereign states to attack those protocols, something that we are already seeing these days. And, if the idea is to separate money from the state, being vulnerable to one of these attacks is not a very good idea.
Adam Dubove, finance specialist and director of Ichimoku Fibonacci.
“The social revolution is greater than the technological revolution”
Also responded to the politician, the Argentine engineer and member of the NGO Bitcoin Argentina, Julián Drangosch. For him, Redrado errs in not understanding that “the social revolution is much greater than the technological revolution.” In that sense, according to the bitcoiner, “Bitcoin far exceeds all altcoins.”
Drangosch was interviewed days ago by CriptoNoticias, in relation to Bitcoin mining. On that occasion, the engineer and also a teacher had opined that “there is no need for blockchains with other synchronization mechanisms such as Proof of Stake.” According to him, “it is not that the blockchain is the important thing and then we have to make the PoW more efficient and that is why we change the synchronization mechanism to PoS”.
On the contrary, he considers that ‘the real invention is the proof of work (from Adam Back in hashcash) and that is what we need in the world and the blockchain is the way to transmit it.
Redrado versus bitcoiners: a Twitter classic
It is not the first time that Argentine bitcoiners have run into Redrado via Twitter. On several occasions, he described the cryptoasset as something only useful for experienced investors due to its high volatility.
Also, in February 2020, the economist had suggested the need to create a digital peso and various BTC supporters They reproached him that his intention was to monitor the financial movements of citizens by the State.
It provoked the rejection of many, on that occasion, that Redrado used China as an example to follow. The Asian country, plunged into a communist dictatorship since 1949, is not precisely characterized by the freedoms of its citizens. Currently, China is in the final stage of testing for the launch of its digital currency, the e-yuan, which will function as a large database in the hands of the state.