Sam Altman, CEO of OpenAI and founder of ChatGPT, has recently introduced Worldcoin, a new cryptocurrency with ambitious plans to be held by every person on the planet. With $100 million in funding from high-profile venture-capital investors, Altman aims to revolutionize the crypto landscape. But what does this mean for Bitcoin, the world's most popular digital currency?
Worldcoin: The Basics
Worldcoin is an ERC-20 token built on the Ethereum blockchain, making it similar to other well-known cryptocurrencies. While it doesn't break new ground in terms of technology, what sets Worldcoin apart is its vision to become both a cryptocurrency and a global identification system. Altman's goal is to distribute Worldcoin tokens to every individual on Earth, establishing it as the first-ever truly global cryptocurrency.
The Iris-Scanning Controversy
However, Worldcoin's identification process has raised eyebrows. To acquire a Worldcoin token and a Worldcoin ID, individuals are required to undergo an iris scan using a proprietary tool called the Orb. This controversial method aims to verify the authenticity of users without compromising their privacy. Nevertheless, critics have voiced concerns, likening it to a dystopian sci-fi plot and calling it unrealistic and unsettling.
Advantages over Bitcoin
Despite the controversy, Worldcoin offers two distinct advantages over Bitcoin. Firstly, it leverages superior technology, utilizing the latest proof-of-stake mechanism from Ethereum and Layer 2 scaling solutions. This enables "gas-free" transactions, eliminating transaction fees entirely. In contrast, Bitcoin still relies on the energy-intensive proof-of-work mining process.
Secondly, Worldcoin demonstrates faster adoption potential compared to Bitcoin. With over 1.7 million registered users already, it has achieved what Bitcoin took nearly 14 years to accomplish. Additionally, Altman's success in scaling ChatGPT to one million users in just five days suggests his ability to accelerate Worldcoin's growth.
Bitcoin's Future and Valuation
While Worldcoin's global expansion plans may seem overly ambitious, Altman's aim to reach one billion users within two years is no small feat. However, with the Earth's population currently at eight billion, the goal of reaching every individual remains impractical. As such, Bitcoin is unlikely to face immediate competition from Worldcoin.
Nevertheless, if Worldcoin gains early traction, it could pose a serious challenge to Bitcoin's future valuation. Particularly in poor and developing markets, Worldcoin's accessibility and affordability as a free altcoin may attract users and potentially erode Bitcoin's influence.
Finally
Worldcoin, introduced by Sam Altman, presents an intriguing new entry in the crypto space. Its unique aspirations to become a global cryptocurrency and identification system make it a project worth watching. While it may not pose an immediate threat to Bitcoin, its technological advancements and potential for rapid adoption could reshape the landscape. As investors, it is important to monitor these developments while retaining a diversified portfolio that includes Bitcoin and other promising cryptocurrencies.