Cryptocurrency is the next step in the digitization of everything - 'It's sort of inevitable'
Lex Sokolin, Autonomous Research's director of fintech strategy, talks with Business Insider executive editor Sara Silverstein about the importance of cryptocurrency in our increasingly digital world. Following is a transcript of the video.
Sara Silverstein: So just generally speaking why do things like bitcoin and cryptocurrencies have value? What is it about the blockchain that is going to change the world?
Lex Sokolin: So there are a couple of different reasons. The easiest one is supply and demand. if people believe it has value, it will keep having value and more and more of it. But they do have their own use cases.Right, so Bitcoin is a payments vector and you can do with it something you could never do with just a number and a bank account or a piece of cash. And you can do it without friction. So some folks think that it's the money supply value and then there are other ideas like the work that goes into making bitcoin - into making it a tamper proof. That itself costs money. So some people think that's the production value, so there's lots of reasons to justify why the price should be one thing or another. But at the end of the day it's whoever is willing to pay for it that's what the price is going to be.
Silverstein: And why do you think that the digitization of money is the future?
Sokolin: The digitization of everything is the future. This has happened already with media, right - with music. And we saw the effect of digitization is essentially your revenues go down 50% in the industry and then the remainder is all digital.And the same thing happened with retail, right?. Amazon you can say is the digital version of all retail. And they own about half the market. And now it's happening to finance and it's happening to equities, and to capital markets, and in robo advice, and neobanks and insuretech. And Bitcoin and the digitization of money is just one aspect of that. It's sort of inevitable.
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