Snowden supports cryptocurrencies, but criticizes their algorithms

In his interview with Ben Wiesner of the ACLU Project, Edward Snowden several times emphasized the vital need for cryptocurrency to have people believe in its value. Fiat currencies are essentially not worth their face value. The government that issues the currency acts as the guarantor of its face value.

The dissident and exile argues that cryptocurrencies are valued because of the scarcity of supply and because of the trust they have among the general population. He said:

I believe that cryptocurrencies have the ability to move huge amounts of funds around the globe without the involvement of banks and on a daily basis... As long as there are people who do not want to use the services of banks, cryptocurrencies will be in demand.

And while he believes that cryptocurrencies are here to stay, the very first digital currency - Bitcoin - will not last long. Regarding the Bitcoin consensus algorithm, Snowden said:

Proof of work rewards those who can afford to maintain the largest infrastructure and consume the most energy, which is a destructive trend that works in favor of the rich.

Regarding Proof of Stake, he said the following:

Algorithms attempt to reduce environmental damage by directly rewarding the rich in the hope that their limitless and the uncontrollable thirst for money will keep the network running. Obviously, we need new models.

Snowden's worldview is that “everything requires trust, but at the same time nothing deserves that trust.” He sees blockchain as a technology that solves this problem. According to Snowden, blockchains are boring, inefficient and wasteful, but they are well designed and virtually impossible to hack or tamper with. And in a world full of stupid lies, being able to prove something is a radical improvement.

This means that while Snowden may be considered an obvious supporter of cryptocurrencies, he is still critical of the way they are developed.

According to bitsonline.com