Andreas Antonopoulos: Stabilizing coins are just colored fax machines

Well-known bitcoin evangelist Andreas Antonopoulos said in a speech this week in South Korea that the full spread of Bitcoin will come, but the question is "when". He pointed out that in the United States and other places, this trend may come later. The popularity of cryptocurrencies in developed countries may need to wait until further development.


When is it universal, when will it come?

In the end, he said that people must "need" the password. Frankly speaking, in developed countries like South Korea, this demand does not exist. This is largely because the field has so far only attempted to “simulate” the current financial system.

Why do Koreans need cryptocurrencies? The answer is simple: South Korea does not need cryptocurrencies… In a country with such a banking system and financial services system, what is the real purpose of cryptocurrency?

Does South Korea need a smart contract? … People use smart contracts to record land ownership. Do you think they are talking about Korea? Probably not, because there is likely to be an efficient land registry here.

Therefore, he said that mainstream popularization will not happen suddenly. This will be an increase in a region and a region, each with different catalysts and forms. He also predicted that the next series of developments will create an application scenario for consumers outside of Venezuela and countries such as South Korea.

He said that for these countries, the decentralized financial system and micropayments are more attractive. He predicted that when cryptocurrency not only "eliminates unnecessary intermediaries," but also goes far beyond this scope of development, it is the beginning of full-scale popularity. Just like the Internet, it was originally used as an electronic post office by e-mail, and later development was not limited to this (social media).

Phase 1: Replace all fax machines. Then there is the second stage: an application that the fax machine can never do.

This also means that you can't eat hot tofu.

Antonopoulos said – we have just begun. Cryptographic currencies are still dominated by a small community that is either attracted to the prospects of capital gains, either victims of corrupt governments or anarchists.

Encrypted currency is difficult to understand, security is difficult to guarantee, the application design is rough, and the words are very vocal.

He also stressed the burden of retailers on cryptocurrency transactions.

At least in the United States, the capital gains tax return method used by retailers is to record every transaction or company profit based on the cost basis… This imposes a huge burden on billing, hindering the retail industry from using cryptocurrencies… with cryptocurrency It is almost impossible to conduct a retail transaction because the accounting costs required will exceed the sales proceeds.

Pour cold water on STO and stable coins

He also commented on STO. In short, he is not optimistic about STO.

I believe that STO may improve the issuance of securities to a certain extent compared to the traditional weak market. But this is not a major reform for me. STOs are simulations of existing systems, but now we are observing, which is not exciting for me.

As for the centralized stable currency, his views are even more negative, even with a hint of irony:

Do you like dollars? How about the dollar on the blockchain? Great, right? Stabilizing coins is exciting and is a cutting-edge technology.

He also compared the stable currency to a fax machine. He believed that the emergence of stable currency was simply to replace the black-and-white fax machine with a color fax machine; in short, it would not fundamentally change the system.

Antonopoulos said he believes that institutions such as banks will meet customer needs when cryptocurrencies are truly available and satisfactory. It needs to appear when it is needed. He added that banks will eventually recognize the inefficiency of the legal currency system.

Finally, he once again emphasized his point: Bitcoin will replace Visa and MasterCard in less than a decade.

After we reach the payment processing capabilities of Visa, PayPal, Venmo and other platforms, our transaction performance will increase by a factor of 100 in less than half a year.

He also pointed out that the ability of cryptocurrencies to subvert in different areas has become apparent, including venture capital.

We have witnessed the madness of ICO. No one can expect that the first area to be subverted is venture capital, and the most surprising is the venture capitalist. They are like saying, wait, have you replaced us? this is not fair.