In an interview published by BreakerMag, Dash Core CEO Ryan Taylor discussed the Dash (DASH) cryptocurrency project and explained why he thinks Bitcoin will not survive long term due to recent strides made by Dash and other cryptocurrencies.
Taylor is the CEO of the Dash Core Group (DCG), a for-profit company funded by the Dash Network. He has a history working in the financial and consulting industry in New York, where he held a leadership position at McKinsey, a high-end consulting firm, and worked at hedge funds and payment companies before finding Bitcoin (BTC).
When he first discovered Bitcoin, Taylor was fascinated with the technology but believed it was designed by someone who knew nothing about the payments industry. Therefore, he took it upon himself to seek out a cryptocurrency that he believed would be better suited for digital payments.
Then, in 2014 he found Dash, which was called Darkcoin at the time. Dash underwent a series of evolutions since Taylor joined the project, and since then has pioneered the masternode model, boasts instant-send transactions, and remains a top cryptocurrency for 4 years running.
The Problem With Bitcoin and Why Dash Is Better
According to Taylor, Dash’s hybrid mining/Masternode business model is far superior to Bitcoin’s proof-of-work (PoW) model.
Explaining why he thinks this, he said:
“Bitcoin and most cryptocurrencies allocate 100 percent of the new coins and all transaction fees —basically, the entire revenue of the system—towards miners. And that to us was absolutely crazy.”
In an effort to improve upon Bitcoin’s model, Dash came up with what they believe to be a more efficient system, in which block rewards are reallocated to more than just miners.
Dash’s system splits the block rewards in 3 ways: 45% goes to miners, 45% goes to masternodes, and the remaining 10% goes to development (the Dash Core Group). In an effort to decentralize the development of the project, masternode operators get to vote on development procedures.
According to Taylor, Dash is far more decentralized than Bitcoin:
“In bitcoin, there are like six miners that control all decisions. In our system, there are checks and balances. The Masternodes also have power, and they can veto some of the things that the miners are doing…And by the way, there’s 4500 Masternodes. I can’t point to six people that control the Masternode layer.”
“I Don’t Think Bitcoin Will Survive Long Term”
Towards the end of the interview, Taylor shared more provocative thoughts on Bitcoin, proclaiming that Bitcoin is only the #1 cryptocurrency because people overvalue network effects. He says just because Bitcoin has first mover’s advantage, people think it’s here to stay. In reality, this is a gross over-simplification.
Adding to this, Taylor said:
“I don’t think that bitcoin will survive long term, is my own hypothesis. Lightning Network isn’t a solution. There isn’t an easy solution. Because they lack governance, they have an inability to change and adapt to the marketplace.”
Do you think Bitcoin’s network effects will erode over time? Do you think Bitcoin will survive long term? Let us know in the comment section below.