Shrem Gives Weighs In On Bitcoin From Prison

Former Bitcoin Foundation Vice Chairman Charlie Shrem hosted an "Ask Me Anything" session online this week from the comfort of his prison Pennsylvania prison cell. Shrem is doing time in a federal prison after he was convicted on money laundering charges. In March, he began his two year sentence, but the cryptocurrency enthusiast has maintained his presence in the industry using the internet. This week, Shrem fielded questions on everything from his personal life to his thoughts on the bitcoin's latest developments. Government Intervention One of the hottest topics in the bitcoin industry has been how government intervention will impact the cryptocurrency's development. Many believe that government regulation is essential in order to give bitcoin a mainstream appeal, but others say it undermines its decentralized nature. Shrem covered this topic during his AMA, saying that he sees government involvement eventually dividing bitcoin into three classes. In his view, bitcoins will be white, or tracked by the government, grey, meaning unidentified by the government and black, or blocked. He said such a system would make individual transactions without government involvement illegal, and essentially take away one of bitcoin's major draws. Transaction Volumes Shrem also weighed in on the ongoing debate about whether or not to increase block sizes in order to prepare for larger transaction volumes. This issue has threatened to split bitcoin in two directions unless the community can come to a consensus. Shrem noted that one of bitcoin's strengths has been its ability to change alongside the financial landscape, and the currency's ability to adapt is important to remember when determining whether or not to modify block sizes.