Is There A Future For Digital Currency? (w/ Joey Krug) | Interview | Real Vision™


Yes, I think the main thing is that, over
the next few years, a few things will happen. One is that I think there will be a successful,
stable currency. The main project in the space right now is
called Maker. And they’re working on the line where mentioned
that it’s collateralized with a few extra assets, and that it’s topped up as needed. And that’s really important because you don’t
want to have the volatility of a currency like Ether when you’re trading on something
like Augur. You don’t want to be right about, say, the
price of Apple, but lose money because Ether collapsed 30% overnight. So that’s one big piece. There’s also projects like IPFS and Filecoin,
which are working on de-centralized file systems. So that’s important for, if you’re making
a decentralized application, you have all this user data. It’s pretty expensive to store it on Ethereum. But if you can store it on their system, it’s
a lot cheaper. And then, the final piece is I think this
stuff will actually start to scale. And so it’s not infeasible at all to me that
we’ll see something like Ethereum doing 50,000 to 100,000 transactions per second in a few
years, which is about very similar on par with what all of the exchanges on Wall Street
do per day. And so when you combine all of those things,
you get a platform that’s actually more feasible and ready to be built on. It’s like the world wide web if you advanced
past dial-up and got to DSL or cable. And so I think once we reach that point, projects
like prediction market will start to take off because they actually are 10x better than
the existing system once you have that scale. So this is going to be one of these situations,
again, very much like the world wide web where, initially, everybody gets on or a lot of people
get on, they become very excited, then they realize that they’re sitting there waiting
very slowly for the high resolution images from all these fantastic sites to be downloaded. Google wins because it has a very simple interface. It doesn’t take any time to load, but ultimately
wins because of the virtue of the algorithm and the strength of the search capability
relative to the display ads that you might have seen from a category search like Yahoo. Right. Ultimately, the application is what becomes
important once the restrictions on bandwidth are removed. Yeah. Basically, it’s currently like dial-up. And so when the average consumer goes to something
like Ethereum and wants to see what it’s all about, you see a lot of people make fun of
it or think of it as a toy. And that’s kind of like what the internet
was in the very early years. But over the course of the next few years
as this stuff matures and scales, it actually gets really powerful.

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