Pocket Dilemmas podcast

Crypto Debated on Podcast

European Bank - Crypto DebatedCrypto-currency does not have the same structure is traditional currency, but are some people missing its genius, Crypto Debated on Podcast.

In the latest podcast of Pocket Dilemmas sponsored by the European Bank for Reconstruction and Development, the group took on the topic of crypto-currency.

“A Euro today is a Euro tomorrow; its value is stable. The value of bitcoin oscillates widely. I would not call bitcoin a currency for this reason.” Said Mario Draghi, head of the European Union.

Draghi went on to note that the Euro is backed by the European Central Bank just as the Dollar is backed by the Federal Reserve.

Bitcoin, Draghi noted, is backed by nothing.

This is the most common criticism of bitcoin and other crypto-currencies, but as the podcast noted, there is another view of crypto.

For instance, a $10,000 investment in bitcoin in 2010 is worth approximately $12 million today, even after bitcoin crashed in 2018.

Furthermore, as the podcast noted, there are countries popping up like Liberland.

What is Liberland?

It is a country off the coast of Serbia.

Free Republic of Liberland is a sovereign state located between Croatia and Serbia. It is a 7km2 land referred to as “Gornja Siga.” The founder and elected head of state is President Vit Jedlicka. Liberland is a constitutional republic with elements of direct democracy. The state has two Vice Presidents and 5 Ministers. The language is English.” According to its website.

It conducts most of its business on-line, through email and Skype, according to an article on CNN.

“Our task is nothing smaller than using blockchain technologies to build a truly free society,” according Vit Jedlicka, the president of Liberland, in a clip played on the podcast.

Liberland initially chose bitcoin as its currency before changing to Merit, its own crypto-currency.

According to the podcast, these sorts of micro-nations, as they are being called, are popping up around the globe, built around the concept of liberty while using crypto-currency.

“The blockchain technology that underlines it is going to be something that will last,” said Zeynep Gurguc from Imperial College London, also appearing on the podcast.

Blockchain is also not without controversy.

Nouriel Roubini, known as Dr. Doom, slammed blockchain in 2018 calling it “a glorified database.”

He called crypto-currency a libertarian utopia.

Urmas Peiker, the founder of Funderbeam, sees it differently; he noted that blockchain and crypto will have more popularity in countries where there is lower level of trust in the official currency, as also noted in the podcast.

Funderbeam, “is a funding and trading platform for high-growth private companies. It helps founders raise funds beyond borders and provides access — and unique liquidity — to early stage equity investors.” According to its website.

Stuart Trow, the credit strategist at EBRDEBRD, said in order for crypto-currency to be viable it needs to accomplish four things.

  1. Scale- it is current used in very few places
  2. High cost of using crypto-currency
  3. Commercial relevance, “businesses have got to see it is worth their while,” he said.
  4. Trust, “a commonality to all currencies,” he said.