The Bank for International Settlements, known as the bank for central banks, issued new research this weekend on the cryptocurrencies boom. It has a few concerns with the idea of digital money becoming actual money: Oh and it may “bring the internet to a halt”.
The BIS has been sceptical for some time on cryptocurrencies, echoing many major players in the financial industry which have serious qualms with advocates’ aim of bringing digital currencies into the mainstream as a key medium for exchange. In its new report this weekend, the BIS has pointed to some of its over-arching concerns that lead it to conclude that “decentralised cryptocurrencies suffer from a range of shortcomings.” fastFT rounds up some of the key points below.
A key element of many cryptocurrencies, including bitcoin, is that so-called miners compete to complete complex mathematical calculations to get the right to add a ‘block’ to the blockchain. The addition of the block stores information about a transaction, and the winning miner is rewarded for its work.
Miners need to run superfast computers in order to perform these calculations. This requires electricity.
A lot of it. . Read more from ft.com…
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