Aug 19, 2022
What is the real value of cryptocurrencies? Can crypto
technology be applied to traditional financial markets? In this
episode, we welcome David Gerard, a technologist and author of the
books Libra Shrugged and Attack of the
50 Foot Blockchain. He uses his skills as a journalist
to investigate the uses and hype around cryptocurrencies and is an
outspoken skeptic of the technology. Although not originally from
the technology sector, he has become an authority on the topic and
has briefed the UK House of Commons Science and Technology
Committee on the technology. He also runs a blog covering important
aspects of the cryptocurrency space. In today’s conversation, we
learn some harsh realities about the benefits of cryptocurrencies
and why they will not last in the long term. We learn what the real
value of crypto-markets is, why he considers it to be a Ponzi
scheme, what needs to change about cryptocurrencies, whether there
are any benefits to the technology and the role of financial
journalism in the crypto space. Listen as we unravel the political
ideology which underpins crypto and whether it can be separated
from the technology. We also discuss the outcome of El Salvador’s
bitcoin experiment and why it did not work. We also learn the
reasons behind the recent crash in some crypto markets and find out
which book David thinks everyone should read.
Key Points From This Episode:
- We start the show by finding out the real dollar value of
crypto markets. [0:03:45]
- The role financial journalism played in getting crypto to where
it is today. [0:06:02]
- Reasons why he does not trust the value of cryptocurrencies.
- Why he thinks cryptocurrency journalism is not credible.
- He explains Bitcoin’s underlying political ideology and the
associated problems. [0:13:25]
- The classic debate of who should have control over financial
- Whether it is possible to remove the political ideology from
- What the most important aspect of cryptocurrency technology is.
- The reasoning behind the argument, ‘You just don’t understand
the technology.’ [0:21:52]
- How to make cryptocurrency work in traditional financial
- Why the recent crash in the cryptocurrency markets occurred.
- Find out if cryptocurrencies can be beneficial for the
- We discuss the outcome of El Salvador’s bitcoin experiment.
- He outlines why Salvadorans did not like the proposed bitcoin
- Learn what the UK House of Commons Science and Technology
Committee wanted to understand about cryptocurrency.
- How his views on cryptocurrency were received by the
- An example of a crypto-based business that was operating
- Whether NFTs will allow artists and musicians to keep more
financial gains from their work. [0:46:13]
- We discuss whether crypto-based technologies will improve over
- Examples of good uses for crypto and blockchain technology.
- What would need to happen for David to change his opinion on