Bitcoin, Crypto currency, Blockchain

Such as MasterCard, the principle of Bitcoin on the head will make

d2d383ddf9495b9a3d1d3ad3dfb3ab9c - Such as MasterCard, the principle of Bitcoin on the head will make

MasterCard wants to introduce a minimum reserve System for crypto-currencies and has filed for a Patent. Thus, the principle of Bitcoin to the point of absurdity.

MasterCard, one of the largest credit card companies in addition to VISA, intends to build a reserve Bank for crypto-currencies. You succeed in this, the principle of Bitcoin into the Absurd.

The Minimum Reserve System

The minimum reserve System, also fraktionales Reserve System, provides that a Bank has only a part of the Bank deposits of their customers. So if all the customers wanted to redeem as of the same date, your Bank balances, would the banks in considerable difficulties. Thus, it is possible that the amount of money on the existing Reserve to extend. This means, ultimately, that you can transfer the ownership rights of the respective money quickly. So, you can pay relatively quickly.

The Principle Of Bitcoin

Bitcoin and other crypto-currencies don’t work that way, that they support this System. If Bitcoin change hands, you will leave the Bitcoin Wallet of Person A and will be deposited on the Bitcoin Wallet of Person B.

The Absurd

A minimum reserve System for crypto-currencies would return the entire idea behind Bitcoin & co. so into the Absurd. Because a decentralized monetary system without a Central Depositary, which is also deflationary, is to counteract the uncontrolled multiplication of the money supply.

The approach of MasterCard

But how can a patent application by MasterCard of 25. October, can see, want to do the credit card companies. In this context, it is by MasterCard:

“While Blockchain currencies is often a certainty [in matters of anonymity] for the information of the payer offer, may be restricted such security for the payment recipient, in particular due to the limitations of the Blockchain. So for example, it takes often very long, about ten minutes, until a block chain-based transaction is processed, because the computer processing time […] is considerable. Conversely, traditional Fiat payment transactions are handled by payment networks often have processing times that are measured in nano-seconds.“

The solution of MasterCard, it would apply in this case to turn as a middle – man between the people and crypto – currencies, and-in order to increase the speed of transactions-the Transfer.

Now it might not be correct, that the average Transaction time of Bitcoin is not (yet) enough to Fiat currencies. However, solutions such as the Lightning Network are currently working on this Problem and come without any intermediary.

The thrust of MasterCard may at first surprise, had warned the company recently of the dangers of crypto-currencies and ICOs.

Leave a Comment