More and more former Bitcoin critics are jumping on the BTC bandwagon. Any Bitcoin critics? No! At the Bank for International Settlements (BIS) Innovation Summit 2024 expressed Yuval Noah Harari recently reiterated his concerns about Bitcoin as the money of the future. The Israeli historian and best-selling author does not like the crypto reserve currency because, in his opinion, it is a “currency of distrust”. According to Harari, the development could go towards electronic money, but the historical trust in banks and governments has proven its worth.
We have seen over the last few centuries that allowing banks and governments to create more and more money is a good idea to increase trust in society.
Yuval Noah Harari on the Innovation Summit 2024
The view of the intellectual, who sold over 40 million books worldwide, is in direct contrast to the essential decentralization of Bitcoin. “When I look at Bitcoin, as a historian I don’t like it because it is a money built on distrust,” explained Harari. What he left open: Why exactly people should still trust central banks in times of permanent inflation and accelerated depreciation of purchasing power of fiat currencies. Harari’s statements caused a stir in the crypto sector and drew harsh criticism.
As one calls into the forest, it resounds. Cardano co-founder Charles Hoskinson in particular attacked the best-selling author and described Harari’s analysis in one Post on X as “Dunning-Kruger on steroids”. With his polemical comment he alludes to the poor judgment of people who overestimate their own competence. The Bitcoin advocate also pointed out Walker the controversial history of the Bank for International Settlements during the Second World War.
According to him, the BIS today clearly advocates the introduction of central bank digital currencies (CBDCs). These could lead to unprecedented monitoring of individual financial transactions. Currently, over 134 countries, representing 98 percent of global GDP, are doing so CBDC development Ahead. The ECB is also researching a digital euro and plans to introduce it in 2026, although there is currently no political mandate. EU blockchain expert Dr. In the BTC-ECHO interview, Joachim Schwerin expressed skepticism about whether the CBDC would soon be suitable for the masses.
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The “trustlessness” of Bitcoin
What appears to be a disadvantage to Harari is seen by convinced Bitcoiners as one of the most important advantages of the cryptocurrency. But what does lack of trust actually mean in the context of Bitcoin? The term refers to a feature of the Bitcoin blockchain that does not require relying on a third party to use it. No government, no central bank, no company – no central party. Thanks to the proof-of-work algorithm, all participants can reach consensus without any higher authority.
The fundamental problem with conventional currencies is the trust required to make them work. You have to trust the central bank not to devalue the currency, but the history of fiat currencies is full of breaches of trust.
Sataoshi Nakamoto in Bitcoin Forum2009
Proof-of-Work is based on the simple idea that miners in the network have to demonstrate a certain amount of work to generate blocks. Even if the term “trustless” may initially suggest it, Bitcoin definitely requires trust. But: Instead of trusting in a financial institution like SWIFT, trust is placed in the Bitcoin Code. Trust is therefore distributed decentrally, but is by no means completely eliminated.
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