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Next on our list. This is possibly opening a can of worms. There was a particular piece of currency news which caught your eye this week.

Yes. So I’m a big, big fan of crypto in general, although I did make money with it. Unfortunately, I was mostly curious on on the tech when Bitcoin. Bitcoin. I think I bought that. Two hundred dollars. But then just for testing the technology. But I don’t regret. So I don’t know how to gamble on that. So there is this article, though, today in the Financial Times saying that is speaking out at REPL. So with 16 billion in cryptocurrency, repoll attempts are reset. And essentially what they’re saying is that the Start-Up is still trying to find a compelling find compelling uses for the block chain technology that they built. They they are trying to become the Amazon of the cryptocurrency world by essentially other than adding more users beyond cross-border payments. So here the million other questions that has been it has been open for Wylie’s. Do you think, like lock chain or cryptocurrency, Syngenta will be globally adopted or will definitely take off at some point because the narrative has been changing quite a lot. So initially, what Bitcoin was seen as a stop payment revolution. But then nowadays there is more of the concept of storage of value because it’s not very efficient for transacting. So what what are your thoughts on this? I have some some stuff.

Yeah. Can of worms as it is. As I said, an. I. Yeah, my. I don’t hold any crypto personally. I I’m not a particularly sort of gambiae type person when it comes to things like that, I don’t bet on sports or play poker or do any of that stuff. But I think that I’m not saying anything basically new here, but there’s definitely sort of two two chunks to crypto. Right. There is the currencies as a thing, as an idea and as the underlying technology and one enables the other. But I think that all the technology associated with block change, a distributed trust goes beyond currencies. And so in terms of mass adoption of block chain, I think that is just that is just gonna happen over time. More and more use cases are coming out all the time. The underlying technology associated with it is quite robust, even if any one particular implementation of it may or may not win out over another one. The ideas behind it and the sort of general implementation details of it just make a lot of sense because it just removes a whole class of friction from the financial services industry. Essentially, all of a lot of the services that large banks and financial institutions provide to the financial services industry that are effectively like rent seeking things like custodian trusts transaction or any of those kind of things, you know, where they’re of charging and taking five to 10 percent of transaction volumes or they’re charging sort of significant chunks of whatever the money movement is going on can be achieved via block chain for, you know, fractions of a percentage. And you just know anyone. Anyone who wants to carry out those kind of transactions is going to go to where it costs less to do it as long as it’s trustworthy. And, you know, just it’s just a different class of quality of product in terms of, you know, from on a pure commodity basis. Do you want to go over there and pay ten times as much for something or you wanna go over there and pay, you know, one times as much? Think so. I think the general move towards the you know, the use of blotched ontology will continue over time. You know, banks themselves are looking, you know, even today are implementing backoffice services, using block chain on their own thing. They’re still going to try and sell it through the old kind of systems and for the old mark-ups. But, you know, there’s one of the banks is going to break ranks and can say no on no, actually, let’s drop our price slightly. And so over time, it’s going to, you know, the prices of all these things that are going to come down to the point where it’s just gonna be the commodity value of whatever the block changes from a currency perspective. Yeah. I think that’s a bigger question. And I think you’re right. Like Bitcoin is Bitcoin in particular has very much become, as you said, like a store of value, particularly over the last, but particularly because of the financial crisis of 10 years ago and the current sort of pandemic crisis. You know that the central bank solutions to the sort of financial problems that all of that causes is quantitative easing, which is the, you know, massive printing of money, which effectively, you know, mass devalues currencies, particularly the US dollar as the world’s currency, so to speak. So if anything that you’re holding as an asset that is, you know, valued in US dollars or in or in the cash is just going down in value over time, whereas bitcoin, because of constrained supply, just will retain its value as as long as people believe that it’s worth what it is worth. And, you know, that’s the same as any fiat currency. You know, most currencies in the world, if not all currencies, the rise of fiat currencies these days, you know, it’s not backed by assets. Bitcoin isn’t backed by assets. There’s enough money being transacted on that platform that I think, you know, trust can be there. Also, it’s a very volatile currency, but that’s not necessarily a bad thing. Over longer times, it makes it more sort of speculative, gives reason for people to do transactions on the platform. So, yeah, I don’t have a crystal ball to say which of the currencies may or may not succeed. And I think probably. Although no money solves a number of different purposes for us as humans. There is the store of value and there is also the transaction, you know, exchange of value. Now, those are two different things. So I think, you know, it may well be the case that different crypto currencies achieve know primacy for each of those different things. So maybe Bitcoin could be the eventual sort of global store of value. And then another cryptocurrency could be the global transactional instrument. Who knows? You know, it will be dependent upon what the sort of underlying rules of the cryptocurrency are. I think the longer that it exists, the more trust there will be and the more likely it is that this will come to pass. I think the only thing that can knock sort of crypto off his perch is if one of the main major crypto currencies suffers some like mega encryption attack or there’s just some deep rooted failure of the algorithm, which no one has been able to detect as yet. But some, you know, someone some evil masterminds with a volcano lair and who’s got, you know, supercomputers working on it. What works out a flaw in some of the encryption algorithms and all of a sudden, you know, right away you go. The chance of that happening gets less with time, although obviously with the ramping up a computer power, who knows in quantum computing, who knows? But, yeah. So I think I think it’s block chain as a technology for sure. Store of value, crypto currency, probably transacting money, crypto currency. Not sure, because if I think you have to have for a transacting currency, I think it needs to be inflexional, which is the opposite. A court is a store of value. Well, yeah.

Anyway, that that was my take on the transaction side.

Sayako experience on FinTech, as you know on this, might make this company or about the seal around, but their thing is.

The Facebook tried to launch a stable coin, which is an interesting concept, basically a basket of current cryptocurrency is linked. Well, actually. Was there a cryptocurrency Libra? A link was correlated, let’s say, with a portfolio of other fiat currencies to give it stable. So so you got so with less less volatile on liquid. And allow cross-border payments with almost no fees, maybe zero fees. So then I’m curious why I think crypto will struggle because of regulators. So yeah, if they manage to crack down face, we’ll give them even before they launched.

And I, I seen that by being involved into a peer to peer lending scene. So so regulators, they have, you know, the power of the pen. They can wipe out companies out of existence just by because they they decided that, yeah, it’s a risky or or or they just don’t want to. They they are they let central banks, by definition, they want to centralise decision making. So they don’t want all these decentralised stuff. So I don’t think from a financial point of view, it will take off the cryptos as a payment method unless there is what it can happen, though, and probably I think China is attempting to do, is that maybe the fiat currencies will be digitalised, but they will not be decentralised. It will still be the central bank issue. And to the counter argument that fiat currencies are backed by nothing. The counter argument to that is that they are backed by the taxpayers. So given in the US, people will need to pay their taxes in dollars, then there will be demand for dollars. So if you if the. On top of that. So if you follow if the US has a productivity ratio or like a GDP of X, then there will expect a demand of X amount of dollars.

And that’s why if there is demand, there will be value. But also, if you all consider that debt that many other countries have in U.S. dollars, then they will need as well dollars to pay back their debt. So. Well, China, China now is is this they have issued debt to many countries. And so so their currency, as they trade with more and more countries, that currency could potentially challenge the U.S. dollar as the most widely used in the world. We’ll see that saw. So I think crypto is not.

It’s not going to replace yet. Unfortunately, because of regulators, unless there is a super big change and like like a worldwide agreement. But even with that, it will be difficult. And then en bloc chain. I think it’s very linked.

So if if if cryptos are not globally adopted for the day today, then that puts a cap on the financial use of block chain, maybe as a search of value. That’s fine. But but probably it could be used for something else. I’m looking forward to see if there is any breakthroughs on all of them. I like like a digital I.D. that can replace passports and all that. So it can speed up like, you know, travel or also maybe boating. You can vote safely and digitally and not block Chinese distributed decentralised ledger.

Right. So anyway, you need to truthfully and trust fully record things with cast iron trust guarantees any anywhere where there are services or products which meet those things that block trade works really well at scale.

Yeah. So I’m, I’m looking forward to. Yeah. Any more applications on that. As for real. Well as the article says as well, they made a lot of money, the founders, but is still lagging behind. I mean, it’s still a major cryptocurrency buddies. It’s not transacting a lot compared to the peaks they had earlier on. So let’s see. I mean, I encourage all of those companies to keep pushing. Yeah, I will be always there. Fine. And use user of all approach. So. Yeah. Also I think.

As new generations coming, there will be more and more inclined to use all these digital probes. It’s fair to say as well that some fintech are digital banks are catching up very quickly. Online revolution transfer wise. They’re doing a great job, Monzo. So there are there many other in the US? So, yeah, I mean, if if they become radically better, as they say, the banks, then that again, that creep, the margin for demand on crypto will just won’t be there. But that’s.

Yeah, I think I think there’s there’s a friction problem. I think if they if whoever can solve if if a company or a group company is whatever it might be, can come up with a way of allowing you to exchange, strike earned straight transact this easier than cash. For the average Joe on the street, then, you know, then then then the part that is downhill, you know, it’s a it’s a slippery slope down then into like using it on a regular basis while it’s while there’s more friction than using cash or, you know, current forms of payment. And then that that’s that’s where the tipping point is going to be. I don’t see it being is there in the next two or three years. But wait, you know, we’ll see if that comes along when. Yeah. Exactly. Thanks very much for listening, everyone. We’ll be back next week with some more nuggets of knowledge. In the meantime, please do cheque out our YouTube channel, which is where we post this and our other podcasts. You can search for net workers. Two words. You can find the link in the show notes as well. If you’re interested in a deeper dive into all things entrepreneurial, including more detailed information, help mentorship and courses, please do cheque out our Web site. And that is that network.

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