In a recent podcast episode by Cointelegraph, crypto trader Mohit Sorout divulged potential scenarios that could spell the death knell for Bitcoin. Conceivably, one of these scenarios might arise if someone developed a way to decode seed phrases, thus rendering the behemoth cryptocurrency vulnerable. On the heels of rapid technological advancement and the rise of artificial intelligence (AI), supercomputers with the ability to decipher seed phrases at astounding speed are not entirely outside the realm of possibility. This, indeed, raises questions surrounding the potential disruption of our technological ecosystem, with Bitcoin right at the heart of this discussion.
In addition to this point, Sorout also posits that the very infrastructure of blockchain – the backbone of Bitcoin – could be under threat. He warned of the risk of a hash power takeover, which would, in essence, put the control of the chain into malevolent hands. Both these scenarios, despite holding pivotal significance, are seen by Sorout as unlikely to materialize.
Contrary to the alarms, Sorout remains stoic about Bitcoin’s survival. Citing the Lindy Effect – a theory asserting that the future life expectancy of non-perishable things like technology is proportional to their current age – he emphasizes that every additional period of survival strengthens Bitcoin’s resilience against extinction.
In another slice of crypto news, the defunct crypto exchange FTX finds itself under the scrutiny of a judge’s order granting Terraform Labs the power to subpoena FTX associated entities. This follows allegations of fraud led by the United States Securities and Exchange Commission (SEC).
Terraform Labs, which suffered a dramatic collapse this year precipitating a major market crash, claimed in its defense that its failure was borne out of a calculated attack from short sellers, potentially involving Alameda Research. The subpoena aims to uncover information about digital wallets associated with short sellers linked to FTX entities.
This graveyard of defunct crypto firms adds a sobering tone to the glittering world of digital currencies. Conversely, the innovative qualities and wealth generation potential of cryptos should not be overshadowed by instances of fraud or the ominous ‘what if’ scenarios that loom on the horizon. While caution is advised, and safety is paramount, one cannot dismiss the advantages brought about by this transformative technology and the elements it wields in revolutionizing our financial paradigm.
Source: Cointelegraph
