We use money every day, but we rarely appreciate its power and its flaws. It’s a tool that has been at the center of human progress, and as we build bigger and tackle complex problems, we’re going to need the best tools available.
– We have a global economy. We’re going to need a global digital currency.
– Cryptocurrency is gonna be a great democratizing force for the world because it’s gonna level the playing field and allow anybody with a cell phone to access financial services.
– This is going to transform how we think about a real global economy. I think in order to understand its importance, we first have to define what currency means. What currency does is it actually allows us to agree upon the value of something. It’s almost like a communication tool.
– There are different ways of coordinating human beings. One way that you can do that is with money. You can incentivize people to try to work on the same thing at the same time.
– We started off building simple systems like a bridge crossing a river to very amazing things like rocket ships. We went from interacting with our neighbors to now transacting with each other around the world, and we wanna make sure that people can move money freely, and our current financial system just doesn’t enable that.
– So the current systems are very centralized, We have big banks and big governments. There’s a lot of middlemen who make things incredibly inefficient.
– When you talk about the problems with the existing financial system, you can go to a situation like Venezuela, where money is being printed and folks’ savings are basically being destroyed.
– The value of their wealth has been completely eroded. I think a lot of us in the United States sorta take this idea for granted, that if someone gives us money it’ll be in our bank account and it’s not gonna disappear or be taken away from us, and that’s really a luxury that many people in the world don’t have at all. There are about 1.8 billion people in the world today who have a cell phone but don’t have access to any financial services. What’s really powerful about cryptocurrency is that it lets anybody, if you just have a smartphone and internet connection, participate in the global economy.
– What Cryptocurrency does is takes the stability that we have then given it to the rest of the world. – If I have a dollar bill, I can hand that directly to somebody else. There was no bank in the middle there. With digital currency and blockchain, it’s actually more similar to cash, yet again, where I can send something directly to somebody else and I don’t necessarily have to go through middlemen like a bank or a credit card company.
– We can go back to how we normally transacted which is direct with each other, without all these giant central parties in between.
– When computer scientists talk about the concept called decentralization, what they mean is to avoid this idea of a single point of failure.
– A single point of failure like we have with institutions.
– If you have a single bank, and that bank has all your money, and then that bank fails, well, it runs out of money. Whereas, if you have lots of different individual nodes, hard drives, and phones, and so on, that have some money, they’re probably not all gonna fail at the same time.
– So you no longer need the middlemen to keep track of the internal ledger. All these computers are writing everything down for you.
– That network effect makes it unbreakable.
– Technology makes us richer and wealthier because you need less time, or less money, or less effort to get something done.
– Right now, when people think of crypto, I think they think of investment.
– There’s a lot of speculation. There’s a lotta talk of prices and how much money has been raised. But, it’s really important to see past that. – It’ll shift to people actually using cryptocurrency to buy goods and services and transact in the economy.
– That does not just send money back and forth. That means employ each other or fund each other.
– A more global economy is important because there is talent everywhere, but opportunity is not evenly distributed.
– In a world where this technology is fully adopted, it won’t matter what country you’re born in. All that will matter is that you have a mobile phone and internet connection and you have skills and knowledge to learn and you can contribute to the global economy. You can benefit from the world, and the world can benefit from you.
– Think about what kind of economy we could have if we had a global currency that we were all responsible for and all invested in. It opens up opportunities for everybody.
– Just being able to trust that if I do good work in the world and someone compensates me for it, I will be able to keep that wealth, that’s such a powerful idea that it actually encourages people to try to do more good things in the world.
– If you’ve got lots of people who are invested in each other’s success literally, they’re invested in each other’s success at a broader level.
– I think cryptocurrencies are gonna be as impactful to humanity as the internet has been.
– Digital currency and blockchain can bind us in ways that we wouldn’t be bound before.