It is high time to end the hype. Bitcoin is a slow energy-inefficient dinosaur that will never be able to process transactions as quickly or inexpensively as an Excel spreadsheet. Ethereum’s plans for an insecure proof-of-stake authentication system will render it vulnerable to manipulation by influential insiders.And Ripple’s technology for cross-border interbank financial transfers will soon be left in the dust by Swift, a non-blockchain consortium used by all of the world’s major financial institutions. Similarly, centralised e-payment systems with almost no transaction costs – Faster Payments, AliPay, WeChat Pay, Venmo, PayPal, Square – are being used by billions of people around the world.Today’s coin mania is not unlike the railway mania at the dawn of the industrial revolution in the mid-19th century. On its own, blockchain is hardly revolutionary. In conjunction with the secure, remote automation of financial and machine processes, however, it can have potentially far-reaching implications.Ultimately, blockchain’s uses will be limited to specific, well-defined, and complex applications that require transparency and tamper-resistance more than they require speed – for example, communication with self-driving cars or drones. As for most of the coins, they are little different from railway stocks in the 1840s, which went bust when that bubble – like most bubbles – burst.
Source: Bitcoin is based on the blockchain pipe dream | Nouriel Roubini and Preston Byrne | Business | The Guardian