Tennessee to Accept Bitcoin as a Legal Form of Payment

Jim Powell, the representative of a Democratic party, introduced a bill that will officially recognize cryptocurrency as a legal form of payment for the state of Tennessee
07 February 2018   457

The bill will officially recognize cryptocurrency and smart contracts for electronic transactions. It will also protect ownership rights of information secured by the same methods.

Despite the fluctuations of cryptocurrency prices and the risk of speculations, Jim Powell believes in the blockchain technology. After the presentation on blockchain technology held on January 24 he said that the state of Tennessee supports this technology and wants to be a leader in this innovation.

According to Powell, business exchanges using the cryptocurrency are not illegal in Tennessee, but his measure would establish a law ensuring it stays that way.

It may seem unnecessary for a lawmaker to propose to recognize cryptocurrency as a legal form of payment in a single state. Each state also has its own financial regulations and laws, and approaches cryptocurrency differently. State and Federal law in the US often conflict over controversial issues and Powell is looking at future conflicts between state and federal rulings on the use and legality of cryptocurrency.   

Cloning BTC Doesn't Fix Its Flaws, Weiss Rating Believes

Researchers from Weiss Rating says that "Bitcoin is as brilliant as it is flawed", and, unfortunatelly, clons inherit its flaws
24 April 2018   18

Clones of Bitcoin has BTC's flaws. This idea Weiss Rating tries to provide in its new research.

Weiss notes that bitcoin was conceived as the basis of a fundamentally new financial system, over which no centralized structure would have control. Nevertheless, as the development of the crypto currency, its shortcomings become more and more obvious. They flow, according to the rating agency, from the "disadvantageous position of the pioneer" bitcoin.

As is often the case with the first iteration of any new technology, it is slow, expensive and has fatal design problems that are not easily overcome.
 

Weiss Ratings

These are main BTC disadvantages: 

  • There is no easy way to upgrade Bitcoin’s protocol (software code).
  • Transactions take up to an hour to confirm. 
  • Another major design flaw is lack of “settlement finality,” meaning that a transaction is never truly closed in an accounting sense.
  • Bitcoin has a limited supply.
  • Bitcoin cannot be used as a real currency. 
  • Bitcoin mining (based on Proof-of-Work) is very centralized, with just a handful of miners controlling the majority of the hash power.
  • Bitcoin mining requires the consumption of ever-increasing amounts of electricity.

Here’s Bitcoin’s strength, its first-mover advantage: Despite all its deficiencies, Bitcoin can boast one thing that no other cryptocurrency in the world has: global brand recognition. Most people around the world have heard of Bitcoin; they know what it is.
 

Weiss Ratings

Unfortunately, trying to solve one or two problems, copies of bitcoin still inherit its fundamental weaknesses: low speed, inability to scale, high costs, energy inefficiency, lack of privacy, etc.

Weiss recognizes that Bitcoin Cash, for example, is 8 times faster than the original bitcoin. Bitcoin Gold is more decentralized from the position of mining. But this is hardly enough.

This are the problems of "BTC Copycats":

  • The Bitcoin copycats still use deflationary models.
  • They still rely on unsustainable electricity consumption for securing their networks.
  • They still rely on a fee structure that gives too much power to the miners, often creating conflicts of interest between them and the end-users.
  • They’re still plagued by the difficulty of upgrading the protocol.