On a recent episode of my radio show Everything Cha-Ching (www.wdjyfm.com), I had the privilege of interviewing Stan Larimer, the “God-father of BitShares,” CEO of Cryptonomex, a leading custom Blockchain development company. Stan spent some time with me to discuss all things cryto-currency and the possibility of an economy based incorruptible currency.
With growing popularity of digital currency, whether in the news or on Netflix documentaries, there is widespread discussion and misunderstanding of what crypto-currency is and how it works. According to Stan, digital currency was created as a “way that you can exchange money with anyone on the planet instantly, not dependent upon a centralized banking system.” The banking system as we know it, capitalizes on our transactions. Whether it is interest rates charged on loans or fees assessed for wiring money domestically or internationally, the system makes money off of money.
By virtue of digital currency transactions being recorded on a blockchain, a public open-ledger that illustrates all of the transactions that have taken place, basically cuts out the need for a centralized banking system. The currency moves virtually and practically eliminates the ability for the currency to be corrupted or profited from.
Because digital currency is still very new, it could be argued that currently, they are more of a speculative investment than actual currency for commerce. There are a multitude of different currencies on the market right now, which leads to speculation, and this causes values across the board to fluctuate. (For further insight into digital currency and investing, here’s a recent Forbes article that I was able to contribute as well):
However, crypto-currencies such as BitShares, with expedient transaction time (3 seconds vs 3 days with Bitcoin) and, as of this article, very accessible value at $0.07 per share, make this currency very appealing. According to Stan, Digital currencies such as BitShares, “can be purchased on exchanges like Openledger.info, which is simply a centralized clearing business built on top of block-chain that gives all the benefits of the decentralized system” to those who transact with it.
There is a lot of dust that needs to settle before we can ascertain exactly how digital currency will evolve. While the government grapples with how to regulate and to control it (there really isn’t a way for it to be controlled), and the various currencies jockey for supremacy, and investors seek the silver bullet, one thing is for sure, digital currency is here to stay.
To hear my entire interview with Stan Larimer and get a better understanding of digital currency and BitShares, listen on the following link: https://soundcloud.com/jamin-armstead/interview-of-stan-larimer-on-digital-currency