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.
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