TOKOYO - Emil Oldenburg, a Swedish native who is the co-founder and CTO at Bitcoin.com, one of the world's largest bitcoin sites, feels that Bitcoin will not have a bright future.
Oldenburg recently sold all his bitcoins and changed over to bitcoin cash due to bitcoin's high transaction costs and lead times. These high transaction costs were reported by Ars Technica stating that fees reached $26 per trade and it takes an average of about 4-5 hours to confirm a bitcoin transaction.
In an interview with Swedish tech site Brexit, Oldenburg said, "I would say an investment in bitcoin is right now the riskiest investment you can make. There’s an extremely high risk".
Additionally, Oldenburg also blames the lack of market liquidity of bitcoin for the switch.
According to Oldenburg, The reason why people haven't understood the risks inherent in owning bitcoins, is simply because most have only bought the cryptocurrency but never sold or traded with them.
"As soon as people realize that this is how it works, they will start to sell," says Oldenburg.
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"The old bitcoin network is as good as unusable." Oldenburg says when bitcoin transactions are recorded on the blockchain, it becomes a problem as the limited amount of transactions per second you can make in the bitcoin network depends on the formation of the memory "block size" that store the transactions.
This, according to Oldenburg, makes for a very liquid and unusable cryptocurrency. While buying, selling or trading in bitcoins is not an issue today, according to Oldenburg, the problems surface when bitcoin transactions are recorded on the blockchain, the digital ledger that records each transaction.
Oldenburg says bitcoin.com will mainly focus on bitcoin cash, the currency that split from bitcoin back in August, and recently overtook Ethereum as the world's second-largest cryptocurrency.
"It only costs $0.012 to send a Bitcoin Cash transaction and there are no lead times. The only drawback is that you need larger hard drives, but that's not a problem for most people," said Oldenburg.
Bitcoin will not be the currency of the future claims Oldenburg as he says, "Not as long as the network is run by this group of people [in the old bitcoin network]. The solutions will be found in bitcoin cash, that's where I see a future."
- BUSINESS REPORT ONLINE