As an experienced financial analyst, I strongly believe that Edward Snowden’s endorsement of Bitcoin in the wake of the recent NYSE glitch highlights the significant advantages of decentralized financial systems over traditional ones. The incident underscores the risks associated with centralized control and the potential for catastrophic failures due to technical issues or human error.
On Monday, Edward Snowden, the former NSA whistleblower, reiterated his backing for Bitcoin once more. His statement followed a major market disturbance where Berkshire Hathaway’s shares experienced a 99% drop due to a technical error on the New York Stock Exchange. This incident has sparked renewed debates about the resilience and trustworthiness of conventional financial structures in comparison to their decentralized counterparts.
Bitcoin Fixes This
As a crypto investor, I recently experienced an unexpected event when a technical issue at the New York Stock Exchange (NYSE) caused erratic price fluctuations in various securities, leading to a brief halting of trading. About two hours later, I received reassuring news that the NYSE had resolved the problem and trading was once again underway.
In the list of impacted securities, the stocks of Berkshire Hathaway and Barrick Gold underwent unexpected and incorrect price plunges amounting to approximately 99%. The value of shares in Berkshire Hathaway, which usually hovers above $622,000, took a steep fall to only $185 due to the technical error. This inaccurate pricing was subsequently rectified.
The NYSE identified the cause of the market turbulence as “technical problems” with its limit-up/limit-down systems. These systems were implemented post-2010 flash crash to prevent excessive price swings during trading hours. Crucial in preserving market equilibrium, they thwarted a hacker attack according to Intercontinental Exchange, the NYSE’s operator.
In reaction to this occurrence, Edward Snowden expressed his viewpoint on X by succinctly declaring, “Bitcoin addresses this issue.” Snowden’s brief statement highlights his confidence in the merits of decentralized financial structures compared to conventional, centralized institutions.
bitcoin fixes this
— Edward Snowden (@Snowden) June 3, 2024
In simpler terms, Bitcoin functions as a decentralized digital money system run on a peer-to-peer network without a single controlling entity. This setup is distinct from conventional stock markets where central control can result in risks like the NYSE malfunction. The creation of Bitcoin focuses on providing transparency, unchangeability, and security to prevent major incidents caused by technical problems or human errors at a central location.
In this context, Snowden’s support for Bitcoin underscores its robustness against the weaknesses inherent in conventional financial systems. By stating that “Bitcoin addresses this issue,” Snowden suggests that Bitcoin’s decentralized structure may shield us from similar disruptions in the financial sector and provide a more dependable option than traditional trading venues.
Significantly, Bitcoin has maintained an impressive uptime of 99.989% since its creation. This high level of availability is a clear indication of the strength and durability of its fundamental blockchain technology. There have been just two noteworthy disruptions in Bitcoin’s history: one occurred in 2010, referred to as the “value overflow incident,” where a coding error generated vast quantities of BTC; another took place in 2013 when a software upgrade resulted in a fork within the blockchain. Both issues were efficiently resolved by the core development team, demonstrating Bitcoin’s ability to bounce back.
At press time, BTC traded at $69,047.
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2024-06-04 10:11