Trond Undheim: Why banks fear Bitcoin

Trond Undheim, senior lecturer at the MIT Sloan School of Management, explains how Bitcoin has disrupted the banking industry. He also explains why this disruption is not necessarily a bad thing. Undheim says Bitcoin actually has the potential to improve the industry.
MIT Sloan Experts Blog: wp.me/p2HrZM-1k7
Trond Undheim Faculty Biography: mitsloan.mit.edu/faculty/detai...

[@gunnar6674]

E-currency is an iteresting concept, but Bitcoin specifically adds additional intermediaries and fees on top of those we already have, and introduces a whole heap of sunk costs of electricity and hardware which would in theory need to be recouped as part of the cost of transactions. In practice many of the costs of Bitcoin have been converted into externalities in the form of stolen electricity, burned down buildings and bankrupt teenagers.
The security model is also deeply flawed in that one only needs to expend the same amount of effort to trick the network as one needs to secure it. It would be a bit like if the only form of collaboration on Wikipedia was revert-warring; or if everyone would need to pick the locks of their own front door every time they need to open it. A good security model would have made it several orders of magnitude easier to use it correctly than to attack it - as it is, there is no techbical way to tell the difference.

[@hundegaga]

he looks like a younger version of Mike Maloney from goldandsilver... DEJA-VU

[@aristotlecajetan7323]

hundegaga That is the first thing that I was thinking, someone let him know of his twin :D.

[@Dryde85]

Mike Maloney's SON?? lol

[@Draakie100]

Money is "the conspiracy" ;)

[@seantwyman9340]

Crypto is the future. Learn to live with it.

[@FrankFloresRGVZGM]

While #bitcoin is a better money, it will never solve the problems created by money. Please investigate a resource based economy.