Cryptocurrency’s role in the future of money | Elad Gil


So, from an end-user perspective there’s
a lot of questions around the impact of either Bitcoin or blockchains. And if you look at the very best technologies
they tend to sort of eventually fade seamlessly into the background. So for example, you’re using your phone
every day, but you don’t necessarily understand how TCPIP is working in terms of transmitting
data on the Internet. And there’s lots of examples like that where
the best technology sort of fades into the background in terms of what you’re doing. In the case of Bitcoin or related cryptocurrencies
a lot of the near-term impact of that is really around financial services and the emergence
of a new digital asset class. And so if you look at Bitcoin really what
it is is in some sense a store of value or a store of wealth, and many people compare
it to something like millennial gold. It’s basically a digital asset that you
hold as an investable product. And so I think many of the early uses is just
going to be this will end up being a part of everybody’s portfolio in ten years, and
you’re going to have some proportion in bonds and some proportion in stocks, and then
some proportion in cryptocurrencies. So I think for most people that’s really
how it’s going to exist in the shorter-term. Some people are talking about the Web3 or
Internet3 and how all infrastructure is going to flip over to decentralized cryptocurrency-based
systems. I’m much more skeptical about that, at least
in the short run. In part because centralized systems tend to
be dramatically more efficient than decentralized systems; in other words if you look at the
cost of running a centralized system it’s much lower, you have bargaining power around
the underlying hardware, you have economies of scale in terms of how you deploy it and
where you place it, and also just running these systems is much simpler if you have
a centralized approach. What that means it is is that most of the
times that you’re going to see blockchains pop up is when you’re using something that
is uniquely associated with them. And if you ask what a blockchain is it’s
really sort of a bad database, but it has very unique characteristics where it has this
notion of being trust-less, in other words you can, in aggregate, come to consensus or
decisions together or conclusions around the quality of data, the quality of the transaction
or other things in a way that no central authority can control. And what that means is you’ve created systems
that are effectively censorship proof or seizure resistant, in other words the government can’t
come and take your asset if you’re in a country which has very bad governance, or
it means that no third-party can suddenly accidentally erase your data, or you can’t
hack a third-party to access your data (although obviously you can still hack a blockchain). And so really where that tends to crop up,
if you ask “what are the things that I don’t want the government or other third-party to
take from me?” or a place where I want some notion of privacy around what I’m doing,
it really tends to be around money or it tends to be around personal data. And in the long run I think those are the
areas that are going to be most impacted, but I think in the short run really it’s
going to be about “Do you have a piece of this digital asset in your portfolio?”




Comments
  1. Something tells me that bitcoin will hit rock bottom and then bounce back up, to the heights that we have already seen. Bitcoin is the captain of crypto currency, so the faith of the market lies behind the lead. In my opinion of course.

  2. Key takeaway (and it’s the important one): blockchains are about money. Period. All the other blue sky dreams about blockchains for ______ miss the point that blockchain is for the purpose of money. Without the money use case all other incentives for blockchain fail.

  3. >mfw there be niggas out there who dont own a single entire BTC. How do yall sleep at night? At least have one while you can man

  4. I feel like the threat of asset seizure is the only thing making bitcoin a viable currency for now. Dealers of illegal goods demand it as a form of payment due to the threat of asset seizure, which creates a somewhat stable demand. Modern monetary theory suggests that a constant demand is essential to a currency’s use/value (usually a baseline demand is created by a government’s taxes requiring it, but not the case with bitcoin).

  5. Friendly reminder to anyone who followed someone who was trying to cash in on the last spike in bitcoin: They don't care about you. They were just trying to cash in on a trend by selling bitcoin advertisements. If you followed their advice you would have lost all of your money.

  6. I'll wait until bitcoins/cryptocurrency is backed with real value, tangible-value indicators before investing in it…with real money.

  7. Bullshit comparison with cell phones… Compare it with gold or dollars, and you get my attention.. Fuck your false equivalencies.

  8. can someone sound gay? This guy sounds like a homo. Maybe he just spent alot of time around them.

  9. Gold and Silver succeed to serve the same purposes for centuries.

    I hope that Cryptocurrencies will achieve the same respect
    and acceptance a few decades later.

  10. Bitcoin isn't about being Paypal 2.0 it is about getting away from the system. Stay away from premined scam coins. Satoshi the anonymous creator of bitcoin left the project and never profited from it.

  11. Quite frankly If I wasn't subscribed to a few channels I would not have heard of crypto, I don't know anyone or any thing that uses it, only money ( US dollar, Deutsche mark, English pound etc ) can be used as money

  12. You should all also probably realize that public crypto will be considered counterfeit money and the "Crypto of the future" will be national coins hashed under strict monetary supervision by governments or entities like the FED.

  13. Elad, you sneakily stated that blockchains could get hacked? when/where did bitcoin get hacked? Because whoever hacks bitcoin's blockchain gets a 7 billion dollar reward.

  14. Good and valid points. I think crypto got too hyped up too fast. It came crashing down just as hard since there is no practical use case for it now and the tech and hard to use. But it’s still a good place to put a little amount of discretionary money on it for investment purposes (particulary Bitcoin) for if/when crypto bull market comes back again.

  15. Crypto will not fade into the background, decentralization will return power to the masses.

    These parasitic monstrosities we have created called "Banks" are sucking all of us dry with Transaction fees, platform fees, brokerage fees etc.

    We have outsourced our trade and commerce for too long.

    https://cryptx.eu.com/trading-quest/

  16. How to maintain control, convince others they require you when they don't. centralization is a scheme to ensure those in control can maintain it.

  17. We don't need any indicator to trade Cryptocurrencies. All you need is to meet contact the best trade analyst, like Mr. Darren Allan because he provides a high level insight you can't get elsewhere. He sees thing on a whole another level to the vast majority of commentators, ( lots of people out there ) and conveys the big picture behind Cryptocurrency revolution and how it is unfolding giving the every trader the opportunity to take maximum advantage of the Market especially at this time the market seems to be dwindling. Although I have seen some of his videos but they are not as informative as talking to him directly through his email: << [email protected] .com >> .The strategy he provided has earned me $15,500 in just two weeks despite Cryptocurrency market fluctuations. If you are earning less I advice you talk to him and if you are earning higher please share your strategy with me. Thanks

  18. While he is right that cryptocurrency will become as ubiquitous as other assets, its usefulness as a transactional currency should not be underestimated either.
    Meet Dai[1]:
    – Durable – It exists as a smart contract on the immutable[2] Ethereum blockchain.
    – Portable – Use it with any Ethereum ERC-20 compatible software, paper- or hardware wallet.
    – Divisible – The smallest possible amount is 10^-18 or 0.000000000000000001 Dai.[3]
    – Censorship resistant – Unlike other stable cryptocurrencies like USDT[4] and USDC[5], it is not backed by centralized USD but decentralized collateral.
    – (fairly) stable against the US dollar.[6]

    Is it Fungible? Some would argue it is not due to the underlying ledger being public and pseudonomous, not anonymous. But it has at least been shown that Dai can be fungible.[7]
    As a reddit user put it:

    "For those who might be confused as to what this means, as I understand it.

    You have the decentralization and security properties of Ethereum.

    You have the stability of the US dollar.

    You have the privacy of cash.

    That's a game changer. […]"
    ~ /u/
    whuttheeperson @ https://www.reddit.com/r/ethtrader/comments/a1uh8u/the_holy_grail_of_currencies_a_zero_knowledge_dai/

    If that is not the future of transactional currenchy, then I do not know that is.

    [1]: https://makerdao.com/dai
    [2]: Immutable enough for these guys anyway: https://entethalliance.org/members/
    [3]: https://etherscan.io/token/0x89d24a6b4ccb1b6faa2625fe562bdd9a23260359
    [4]: https://tether.to/
    [5]: https://www.centre.io/usdc
    [6]: https://coinmarketcap.com/currencies/dai/
    [7]: https://medium.com/@atvanguard/zkdai-private-dai-transactions-on-ethereum-using-zk-snarks-9e3ef4676e22

  19. I really hope it fucking dies, we spend more energy mining bitcoin and crypto-currencies than the entire production of all the worlds solar panels. Its disgusting.

  20. At first Bitcoin was touted to be a replacement of FIAT as a medium of exchange for Goods & Services. Due to the Volitility of its value it became at best a commodity. Now we find out that it no longer is what it was supposed to be or do but only an investment / Asset to hold in your Portfolio. What is wrong with Precious Metals ( gold/silver or other ).

  21. How can we create a balance or a system that will allow us to retain our personal liberties (decentralization) while in the same way not creating a playing ground for illegal activities because we'll be out of seizure reach from the government? I don't want the government or anyone being able to readily access my digital identity or "assets" but I don't want criminal organizations to operate even more freely than they currently do on the dark web for example.

  22. 1:48 All of these altcoin experiments are worthless. Most of them are already a typical centralized Network, which should not be a blockchain given it insecurities.

  23. March 2019… and he talks about things that have long already happened like he’s predicting the future 🙄

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