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BIS: Cryptocurrency Technology Difficult to Grow

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Jakarta -The Bank for International Settlements assesses that cryptocurrency technology will not develop in the future nor replace the current financial services system.

In its annual report quoted from Bloomberg, Monday (18/06/2018), BIS describes the technology developed in the currency crypto has a congenital defect since it was introduced. This defect makes the ideal for the system to be a means of fertilizing difficult assets are met.

The Swiss-based financial institution says cryptocurrency is highly unstable, consumes too much electricity, and manipulates and deceives too much. This weakness makes it difficult for digital currencies to become the medium of foreign exchange in the global economy.

Cryptocurrency that promotes blockchain technology is designed as a decentralized system.

Digital currencies with this technology are recorded and distributed on all connected computer networks. Once data is thrown into the system, it will be very difficult to change it.

The report says that spreading and recurring transaction transactions into all computers in the system can cause cessation of the Internet due to overloading.

The next problem, digital money mining that requires electricity with high consumption.

Mining is needed to increase the circulation of cryptocurrency in the system. As a result, the catastrophic surge in the need for large quantities of electrical energy is evident.

Source: https://www.bloomberg.com/news/articles/2018-06-17/bitcoin-could-break-the-internet-central-banks-overseer-says

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