Is Bitcoin destined for failure? as Mike Hearn would say
Controversy has erupted since Mike Hearn’s curt departure from Bitcoin development. His close and longtime relationship with Bitcoin has intrigued users as why he did this! Some believe this exit from bitcoin as a way to promote himself and his new technologies, bitcoin XT. We examine the core ideas in his leaving remarks and analyze the community’s response.
Is Bitcoin headed to zero because of technical issues?
Mike Hearn, a Zurich-based developer and regarded as a co-creator of Bitcoin, this weekend published a blog calling Bitcoin a “failed” project. He writes “It is more likely people will just stop using Bitcoin because transaction confirmation becomes increasingly unreliable.” Hearn, who had until recently been working on new software for the currency, says he has now sold all of his own bitcoins and will no longer take part in the crypto-currency’s development. Does one of the co-creators pulling out of the project equate to Bitcoin being a failed experiment?
Are bitcoins struggles really technical? Or are they social/cultural?
The biggest issue for bitcoin currently is the speed quickly new transactions can be processed. The size of blocks being added to the blockchain has been increasing steadily with the rise of Bitcoin. This results in the rate which transactions can be processed slowing down. Some transactions face significant delays, hampering payments. This leads to the fear of the network eventually becoming oversaturated and ceasing to be usable.
Who does Mike Hearn think he is?
Mike Hearn is a software developer who has worked on Bitcoin technologies for over five years. In 2014, he left his job at Google to focus on Bitcoin full time. He has worked closely with Bitcoin chief scientist Gavin Andresen on alternative software for Bitcoin called Bitcoin XT, which aims to address capacity issues facing the network. The Bitcoin XT version developed by Mr Hearn, Mr Andresen and others offers to increase the block size limit to 8MB.
Blockchain issues become publicized
There are other Bitcoin associated startups that aim to increase this block size limit in varying amounts. Nic Cary, co-founder of one such Bitcoin start-up, points to BitcoinClassic, which would increase the block size limit to 2MB. Mr Cary says the need to update the block size limit is not as urgent as some say. Many argue that this problem will solve itself.
Bitcoin struggles to remain secure and stable
He states the Bitcoin network has been updated safely dozens of times and believes it will continue to be the most reliable, affordable, and efficient way to send value around the world. Of course as with many bold statements come dissenting viewpoints. Bitcoin’s price fell sharply over the past week reacting on the publication of Mr Hearn’s blog. One bitcoin is now worth $380 down from about $430 in the previous weeks. Of course bitcoins have inherently been volatile.
Is it ever truly possible for bitcoin to fail?
Bitcoin’s underlying premise of being a decentralized currency has led to much argument over its future direction including decisions that might change its core principles. People feel if certain alterations are made it undermines the core backbone behind it. For the time being there has been no overnight collapse in the price of Bitcoin nor do we foresee that happening anytime soon. Bitcoin remains popular in it’s community and continues to gather the interest of developers. Others will pickup where Hearn left off and continue to build both the currency and technologies powering blockchain.
Despite the loss of one of it’s earliest developers, we believe there is un-told potential behind Bitcoin.
Our belief is other prominent members of the community will pickup where the founders left off and continue to develop and further advance this technology. The Bitcoin struggles ahead will continue to take many different forms. We will be part of this and continue to invest time and money into the technology of crypto currencies.a
The cryptocurrency community will continue their backlash against Mike Hearn. Bitcoin trading volume continues to rise, bitcoin services continue. Will the blockchain really affect users? Will developers and the ever-increasing community be able to solve the problem before it affects users?