Patrick Byrne: “Bitcoin technology is here to stay.” | Z3
“A year and a half ago, Jamie Diamond wrote a letter to shareholders warning them this is going to come eat our lunch. He was scared to death of it. I think what they thought was that they could get in front of it and they’re realizing they can’t get in front of it.
China has taken a position just like Jamie Diamond where they have come out and suddenly they’re all afraid of it.
What do you know? The guys who run the post office don’t like federal express. The taxi companies don’t like Uber. The guys who belong to this financial world of debt based fiat money, central banking, Keynesian spending, this magic money tree that they all grew up in, they don’t like a form of currency that cannot be controlled by a government. What a surprise!
At least this bitcoin stuff is governed by the laws of mathematics in how much of it gets created. No one governs these government mandarins when they whisk new dollars into existence. They created 4 and a half trillion dollars in the last eight years. Bitcoin is coming into existence at a predefined rate, governed by mathematical principles.
With block chain, you can take out about 90% of the back office cost of all kinds of mechanisms and banks and stock market and such. That’s why Overstock has been pioneering the application of block chain on Wall Street. You cannot only take out the costs, but you can create a version of Wall street where no one can cheat. All kinds of mischief that happens on Wall Street cannot be done with the version of Wall Street that’s re-created on the block chain. What we have seen, and this is what I think scares Wall Street so much, what we’ve seen in the last 10 years, anyone who’s awake, has seen that these banks have found ways to buy themselves regulators, buy themselves Congressman and Senators and maybe judges and who knows what, but they cannot buy the laws of mathematics.”