TechSpot

Well-known Bitcoin developer exits the community, says the cryptocurrency experiment has failed

By Shawn Knight
Jan 15, 2016
Post New Reply
  1. Mike Hearn, a five-year industry veteran and one of the most well-known developers and advocates of Bitcoin, has come to the conclusion that the "experiment" has failed.

    Hearn said in a post on Medium that the fundamentals are broken and despite short-term gains, the long-term outlook for Bitcoin will probably trend downwards. As such, he will no longer be taking part in the development of the cryptocurrency and has sold all of his coins.

    Multiple reasons were given to support his theory, chief among them being that the system is now completely controlled by just a handful of people and that the network is on the brink of technical collapse.

    The technical collapse Hearn references has to do with an "entirely artificial" capacity cap of one megabyte per block, something that Hearn says was put in place long ago as a temporary kludge. Remarkably, the temporary fix is still in place which means the network's capacity is now almost entirely exhausted. When networks run out of capacity, Hearn notes, they become very unreliable.

    Bitcoin valuation chart by Coindesk

    The simple solution would be to raise the capacity limit but because just two Chinese miners control more than 50 percent of the hash power, that hasn't happened for a number of reasons.

    If you're at all interested in Bitcoin and the technicalities of it, I'd encourage you to give Hearn's article a read. Of course, it's worth noting that this is just the opinion of one person within the community (well, formerly). Only time will tell whether or not his prophecies are fulfilled.

    Permalink to story.

     
    Last edited by a moderator: Jan 15, 2016
  2. Ahmed90

    Ahmed90 TS Enthusiast Posts: 99   +10

  3. Uncle Al

    Uncle Al TS Evangelist Posts: 1,684   +790

    Yes indeed it is .... and the question is, a failure for whom? The end users or the money changers? :)
     
  4. VitalyT

    VitalyT Russ-Puss Posts: 3,156   +1,431

    That's what said the first time I ever heard about Bitcoins, about 2 years ago. It's not like there is something wrong with them, no,...but everything - yes.
     
  5. Theinsanegamer

    Theinsanegamer TS Guru Posts: 382   +340

    So, a currency with no central power has become dominated by a few powerful players? Isn't that just the nature of humans and industry?
     
    bob333 and Adhmuz like this.
  6. AnonymousSurfer

    AnonymousSurfer TS Guru Posts: 451   +37

    Very interesting link... Does make it seem somewhat fishy.

    In the same sense, if those who now have control over BitCoin don't want to innovate it, they might as well lose it to the banks. BitCoin was designed to be a collaborative, dynamic currency. If those who want this won't fight for it, then they might as well lose it.

    Whether BitCoin dies or lives, it definitely brought a lot to the table with all of the technology that was introduced. BitCoin may die sometime down the road, but I have a feeling that blockchain technology will be around for a while.
     
  7. Adhmuz

    Adhmuz TechSpot Paladin Posts: 1,653   +523

    "just two Chinese miners control more than 50 percent of the hash power"

    This alone breaks the crypto currency pretty hard, but I never believed it was ever going to work from the beginning.
     
  8. CaptainTom

    CaptainTom TS Booster Posts: 157   +61

    All they need to do is start pushing for adoption as aggressively as DOGE has. It's time for bold moves by those with heavy investments.

    Otherwise they might as well sell their coin and GTFO because they are not doing anything useful.
     
  9. SBKenn

    SBKenn TS Rookie

    IMO, bitcoin was always a pyramid scheme. This guy has just decided that it is about to collapse.
     
  10. Camikazi

    Camikazi TS Maniac Posts: 820   +231

    Man, to be in at the top of a pyramid scheme like this. I'm not well enough connected for that though :(
     
  11. treetops

    treetops TS Evangelist Posts: 1,953   +162

    Lol he sells all his coins and then makes a public statement that will result in their value declining. Not to subtle. Wish I had that much sway on the market.
     
  12. ET3D

    ET3D TechSpot Paladin Posts: 1,180   +73

    Nice of this guy to remind me that I still have some cryptocurrency left. Hopefully I could find it and use it.

    It was clear that Bitcoin is a bad thing ever since dedicated hardware became the means to get it. Still, it is interesting tech, and a lot of other cryptocurrencies have tried to fix the holes in Bitcoin. Haven't been following the field for a while, but as AnonymousSurfer said, there's a lot of interesting stuff there that might live on.
     
  13. JayTe

    JayTe TS Rookie

    LOL! Oh my, one developer leaves bitcoin and it's all going to pot!?! If any of the *****s actually read his post, he justs comes off as bitter that his "solution" was not taken on board. If he thinks that it is better to get in bed with the banks he should take a bit of time to actually read some of their patent applications. Most of them will be voided by prior art, the rest are based on the idea of using cryptocurrencies in a centralised manner (sound familiar). It's all around retrofitting cryptocurrencies to a dead model and Mike Hearn has gone and tied his future to it without even really knowing what he's got himself into. It's laughable.

    And I'm looking at Blockchain's Bitcoin Hashrate Distribution and I don't see any two miners with a combined 50% share. Someone needs to get their facts straight!
     
  14. infiltrator

    infiltrator TS Booster Posts: 141   +21

    The Chinese are destroying everything....
     

Similar Topics

Add New Comment

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...