Kathryn Haun, a former Federal Prosecutor, and Paul Krugman, a Nobel Prize-winning economist had a ‘Let’s settle this’ debate recently wherein they spoke about the reason why people would choose cryptocurrencies when there is mobile banking.
The Noble Prize-winning economist spoke about cryptocurrency and governments. He said that he is not sure about why government-validated cryptocurrencies are better than government-validated fiat currency. Krugman said:
“But they might want to do it. The other thing to remember is that government officials, as you know, read the same social media as everyone else and want to be trendy and you know, the trendiness is a very big factor in all of this”
Furthermore, Kathryn spoke about the reason why Bitcoin and other cryptocurrencies would work taking into consideration that not everyone still has access to the Internet. She said that currently, there is an explosion of cheap mobile phones, which cost less than $30. She added that people who do not own a computer have a mobile phone and that there are several cryptocurrency exchanges and dApps which have a mobile version and not a desktop one.
“I think this is really interesting and I think there could be this leapfrogging effect because of course, not everyone has access to a computer”
To this, Krugman questioned the reason behind not opting for mobile phone banking, which is also low of cost. He said that he cannot comprehend why cryptocurrency would solve something which is conventional methods cannot.
Kathryn replied by stating that there are few problems with centralization and decentralization. She related this to a problem she had with PayPal when she was overseas investigating a money-laundering case. She said that her PayPal account was frozen as they had suspected the activity, adding that it was frustrating.
Kathryn continued to say that centralization, for her, is a honeypot as most of the money is stored in one single place, which can be hacked. She added that this, in fact, is not the case of blockchain technology as it cannot be hacked, whereas only exchanges have been hacked so far.
She further added that the millennial’s confidence level in banks, financial institutions and governments is at an all-time low. According to a research paper she had read, one out of three millennials in the United States would rather own a Bitcoin than stocks.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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