„It can have extrinsic value in the sense that people want it,“ Bailey said.
The position of Bank of England President Andrew Bailey on cryptomeda has apparently not changed, despite the economic consequences of the pandemic.
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According to a October 12 Reuters report, Bailey spoke at a Bank of England (BoE) Q&A session with members of the UK public on Monday. At that moment he said he was „very nervous“ about people using Bitcoin (BTC) for payments. The president said that people should take into account the volatility of assets when investing.
„I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value,“ said Bailey. „It can have extrinsic value in the sense that people want it“.
Bitcoin is currently trading at over £8,800 in Coinbase Pro, up from around £5,200 earlier this year.
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The BoE president’s statement is a reaffirmation of his thoughts on cryptomeda. During his time as head of the UK’s Financial Conduct Authority, Bailey told members of parliament at a Treasury Selection Committee hearing in March that investors must „be prepared to lose all [their] money“ because the crypto asset would have no intrinsic value. At a virtual conference in September, the president of the BoE stressed that crypto assets are only „inappropriate for the payments world“ and „have no connection to money.
However, Bailey treated digital currency backed by fiduciaries differently, saying that stablecoins could offer „useful benefits,“ including reducing friction in payments. In addition, the president of the BoE announced in July that the bank is considering issuing a central bank digital currency (CBDC).
MESS arrives to resolve 51% attacks on Ethereum Classic
Ethereum Classic is using an idea that Vitalik Buterin had in 2014 to help ward off attacks of 51%.
Last weekend, on block 11380000, a 51% attack prevention solution was presented to the Ethereum Classic (ETC) community. Several of these attacks have recently put ETC at a crossroads, leaving the very survival of the prison uncertain. In the weeks following these attacks, the community worked to evaluate several potential solutions.
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The first that has been implemented is called MESS, short for Modified Exponential Subjective Scoring. Its predecessor was first suggested by Vitalik Buterin in 2014. She assumes that while small chain reorganizations dating back to some blocks are perfectly normal, those proposing reorganizations dating back to hundreds and even thousands of blocks are highly suspect.
The President of the BoE continues to claim that Bitcoin has little ‚intrinsic value‘.
With most blockchains proof-of-worth, the longest chain with the most work wins. This means that malicious invaders must exploit a longer chain in isolation and then propose it to the world. This is what happened during the recent attacks, which cost millions of dollars to honest participants.