#BITCOIN EXPERT TALK CRACKED#

The other concern is that it could make it easier for people to commit fraud since it’s not as easy to audit and monitor as traditional currencies. For one, it essentially recreates a system that already exists. There are a couple of issues Grundfest has with this approach. Those assets could be other currencies or commodities - virtually anything, really.

currency used to be on the gold standard. Stable coins have grown in popularity as a way to back cryptocurrency with assets that hold real value, much in the same way U.S.

Once those had been established and public trust was built, then it would make sense to simply link each one to create a global network. The company could have focused on building banking systems customized to each nation or region, addressing regulatory demands and driving down costs. Instead, Professor Grundfest argues that a better approach would have been for Facebook to create its own bank that could act as a primary financial institution for its users. He doesn’t see introducing another cryptocurrency as the right solution for minimizing payment transactions, and he doesn’t agree with Facebook’s attempts to circumvent traditional banking systems entirely. Professor Grundfest concedes that the goal is admirable, but he believes that the approach is deeply flawed. In particular, the platform was designed to facilitate international payments and eliminate unnecessary transaction costs and fees.

#BITCOIN EXPERT TALK CRACKED#

Libra: Not all it’s cracked up to beįacebook’s contribution to the cryptocurrency world - Libra - has been hyped in some corners as the answer to a variety of financial issues. The Chinese government could theoretically make changes to cryptocurrencies at a fundamental level by imposing its will on the data miners who keep them running. They are still reliant on the underlying infrastructure powering cryptocurrencies like Bitcoin, much of which is located in China. Cryptocurrency aren’t really trustless at all. Grundfest notes that regardless of whether you think that’s a good or bad thing, it’s not entirely accurate. They would argue that cryptocurrency is superior to traditional physical currencies because it is not dependent on, for instance, the U.S. Supporters of Bitcoin and other cryptocurrencies claim that these financial platforms are inherently trustless systems - that is, they’re not directly tied to any nation-state, government, or body.

Bitcoin expert talk