Jason Bloomberg Explains Why Permissionless Blockchains Need to be Closed

Recently, Bloomberg gave an interview where he shared his reason for opposing these systems.


Jason Bloomberg on Why Blockchains Should be ‘Shut Down’

Jason Bloomberg has emerged to be an opinion leader in the cryptocurrency industry. The IT analyst has been participating in blockchain and cryptocurrency forums where he shares his ideas with industry gurus. Publicly, Bloomberg is known to against cryptos. He takes issue with the initial plan of cryptos being decentralized as contained in the bitcoin white paper. Recently he sat down with Coin Graph where he highlighted the importance of closing decentralized cryptos. He notes that such currencies are responsible for crimes related to the industry.

According to Bloomberg, open blockchains are risky because nobody can take responsibility.  He noted that a criminal can take advantage and create accounts because nobody is watching.  Bloomberg opined that the only way to avoid crime related to blockchain is to have a system that can provide accountability. He said that most cryptos did not have permission hence need to shut down.

He acknowledged that practically, shutting down such cryptos is near impossible. Bloomberg also projected the impact just in case such cryptos are closed  He, however, noted that having an order in taming such blockchains solely depends on a country’s laws.  He advises policymakers to come up with laws that can tame permissionless systems. Bloomberg added that the same should extend to exchange platforms.

The growth of Cryptos Attributed to Crime

At the moment, some cryptos do not have proof of work hence there is no obligation of mining them. It means that the permissionless blockchain can be used. Bloomberg said that the industry can shift from systems without permissions and deploy a permission approach. He pointed out the example of Ripple urging the industry to move in that direction.

Interestingly, Bloomberg claimed that criminal activities are among the reasons behind the rapid growth of cryptocurrencies. He pointed out that bitcoin’s dominance was due to criminal activities that have risen in the industry. Bloomberg further pointed out ransomware was the new form of hacking systems. Hackers only gain through ransomware because ransom is paid using cryptocurrencies. The use of ransomware emerged with growth cryptos. Ransomware was popular a year ago but in 2018 crytojacking is a new crime.

This form of crime entails illegal mining of cryptocurrencies using web browsers. Bloomberg said that from his research, major firms are now a target of crypto hijackers.

2 years ago

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