Kim Dotcom's plan for 'perfect mass market' Bitcoin cryptocurrency

[Len]

ALL PHYSICAL currencies will be abolished and replaced with a cryptocurrency such as bitcoin if plans by internet entrepreneur Kim Dotcom go ahead, the political activist revealed.

The Germany hacker outlined his idea on Twitter for a “perfect cryptocurrency” which would not need to be regulated by banks or governments.

He said: “The best case scenario for the world would be one perfect cryptocurrency for all.

“High speed transactions, low fees, smart contracts, truly decentralised with democratised forks and built-in protections to prevent banks, corporations and governments from taking control.”

The man who describes himself as an “internet freedom fighter” previously invented the online file hosting service Megaupload, formed a New Zealand political party called the Internet Party, and earlier this year launched another file sharing service called K.im.

His most recent online server allows uploaders to be paid for their content in bitcoin via the payment service BitCache.

Kim Dotcom, whose real name is Kim Schmitz, has long been a fan of bitcoin and the payment service BitCache.

Previously he has suggested BitCache could bring “bitcoin to the mass market” and that it will one day “ultimately replace credit card payments on the internet”.

Mr Schmitz is currently fighting extradition to the US from New Zealand for charges of criminal copyright infringement, money laundering, racketeering and wire fraud.

He also received a two-year suspended sentence in the 1990s when living in Germany for selling identities he hacked online.

In plans which could link up with his plans to create a mainstream cryptocurrency, Mr Schmitz has also outlined his hopes to build an “alternative internet”.

Speaking about his plans for a new internet on Twitter he said: “I have been working on this for a long time.

“Mobile networks and devices will be ready for this in 4-5 years.

“When it goes live our dream of true Internet Freedom shall become reality.

“The upcoming K.im and Bitcache apps can provide the initial critical mass for this new network.”

A major surge in Bitcoin’s value has seen the cryptocurrency’s worth rapidly increase to an all-time high.

The bitcoin market is rapidly increasing and it has taken less than a month for its value to increase from £150billion ($200billion), which it was worth on November 3, to £225billion ($300billion) yesterday.

One bitcoin is now worth the equivalent of £7,277.

However, some people have argued that rather than bitcoin being free from “banks, corporations & governments” as Dotcom suggests, there is a need for more regulation.

Nicholas Gregory, CEO of the cryptocurrency business enabler, CommerceBlock, has warned that unless there is a price correction to the cryptocurrency the price surge “bubble” may crash.

He said: "Once Bitcoin starts to behave more in tune with traditional foreign exchange markets, people's faith in it will only grow.

“However, that means it is not immune, and should not be immune, from price corrections either.

"A significant price correction and the long term viability of bitcoin as a major alternative currency are not mutually exclusive."