Bitcoin won't become mainstream
Bold statement, but slowly becoming reality. Let me define what I understand as mainstream use of Bitcoin: General public using Bitcoin as a means of transaction for goods and services without intermediaries; or Bitcoin as a monetary standard.
I've been following the rapid evolution of Bitcoin as a peer-to-peer solution into a heavily regulated, institutionalized, and bureaucratic asset. Some argue that institutions bring value to Bitcoin, thus a potential increase in price. However, are we even talking about real Bitcoin when people don't manage their keys? I have my doubts.
Two days ago MasterCard announced their Crypto Source program. The alliance with Paxos aims to let financial institutions offer cryptocurrency trading to their customers. Paxos will handle custody and trading, while MasterCard will handle regulatory compliance and security. MasterCard will assist banks with crypto compliance rules, verify transactions, prevent money laundering, and monitor identities.
As the saying goes: "Not your keys, not your coins." If institutions are managing our Bitcoin, they are not truly ours. And, at any moment, those same institutions can — and will — seize our assets if Governments demand. That if the Bitcoin under custody exist and are not mere numbers.
What I see is institutions taking Bitcoin away from people, where it should be. But what can we do if the general public is not interested in understanding the function of money? (topic for a future discussion).
What's your opinion? Is Mastercard's project beneficial?
Posted Using LeoFinance Beta