Daniel Larimer – known mainly from Block.one – he recalled his Bitcoin (BTC) predictions from 2010 and explained why EOS is useful as a currency. In his opinion, BTC and Ethereum (ETH) serve only as forms of banking reserve.
Daniel Larimer: I warned you about BTC problems before it became fashionable!
Daniel Larimer wrote on Twitter a post in which he recalled his criticism of Bitcoin’s scalability. His original statement was from 2010. It turns out that eleven years ago, during correspondence with the creator of Bitcoin, Satoshi Nakamoto, he stated that the cryptocurrency would not be suitable for microtransactions. In a way, he was right to anticipate the BTC problems that modern users and investors are experiencing.
In his opinion, Nakamoto’s work can now be used only for transactions that are concluded between banks and other large entities. For payments below $ 500, the fees are higher than those in traditional centralized banking systems. Even a credit card is cheaper.
In July 2010 I predicted that Bitcoin would eventually only be viable for bank-to-bank settlement because of scalability constraints. Now bitcoin payments less than $ 500 are more expensive than credit card fees. “If you don’t believe me or don’t get it, I don’t have time…”
– Daniel Larimer (@ bytemaster7) March 26, 2021
Bet on EOS!
The former director of technology at Block.one emphasized that the public EOS network and its main component, EOS, do not have similar bottlenecks as the main cryptocurrency. EOS can therefore be used as a currency, while Bitcoin (BTC) and Ethereum (ETH), even on a mass scale of adoption, can only be used to store value.
However, there are two technical concepts that can help Bitcoin get rid of these restrictions. First, the cryptocurrency blockchain should process larger blocks. Then the network should move some of the transaction data off the main chain to reduce the pressure on mainnet. Similar reforms can be carried out in the case of ETH. That would solve the problem.
It is worth recalling that Daniel Larimer also announced that he is working on a fully decentralized social media protocol, Clarion Messenger. However, he recently also added that “He is more committed to EOS than ever before.”
His criticism should be placed in a broader context. He is a co-founder of EOS, which was designed as a platform for building decentralized applications and autonomous decentralized organizations. So it is a competition to Ethereum.