Xapo CEO, Wences Casares, described cryptocurrency as “an intellectual experiment” that might still fail, in a recent interview with Bloomberg. However, he further stated that the experiment was more likely to succeed, although the results are still several years away.
Casares, the Argentinian entrepreneur known as ‘patient zero’ for his role in promoting bitcoin within Silicon Valley, says that the experiment may work or may not work. However, he points out that the experiment is happening right now, so it’s worthwhile paying attention.
He certainly feels that the experiment is more likely to succeed, but that it is irresponsible to ignore the possibility of failure. The technology is robust, but humans created it and humans are fallible. Perhaps something that we haven’t found in the past ten years will materialize to create a failure.
The Internet – 1992
Casares likened the current state of blockchain to the internet in 1992. Back then, all you needed to know, was that a new protocol could move information from anywhere to anywhere, in real time, for free. That had the potential to change information forever. It would have been churlish at the time to complain that you couldn’t yet watch a movie on it.
Similarly, he states that Bitcoin and blockchain bring certain attributes that haven’t been achievable before. Firstly, a computer system which is sovereign, or autonomous. A system which only obeys its own rules. Added to that, the system is uncensorable, and (in the case of Bitcoin) there will only ever be 21 million issued.
A Measure of Success
Casares states that the success of the crypto experiment is still at least seven, maybe ten or twenty years away. He feels like the success of Bitcoin 00 would see it used as a global (non-political) standard of value and settlement. In the same way that we have global units of weight and length (unless you live in the US), the price of everything from dollars to oil to gold would be given in bits.
Casares concludes by saying that he doesn’t think Bitcoin will replace currencies as that scenario doesn’t make sense to him. However, he does fell that Bitcoin can change money the way the internet changed information.
Do you agree with Casares’ statements? Share your thoughts below!
Images courtesy of Shutterstock