Joseph Lubin: Money and Rebuilding the World’s Systems
What are your views on centralized control of monetary systems?
- It can be viable in many situations for a time. Debt based systems require more debt to be created to pay its own interest. Over time this leads to collapse, especially in the presence of overspending by politicians. Ie. raising budget ceiling year after year. – creating more debt that there is money to pay it off.
- Fiscally responsible people could keep it running forever.
- We may be in an end of life state for many money systems.
- Blockchain offers an opportunity to build better systems.
- Without free energy/teleportation/space mining or other way to generate vast amounts of value it is probably impossible for existing monetary systems to survive.
- Centrally controlled money supplies (central banking) respond to old data that leads to remedial measures comparable to oversteer or speed wobbles.
- If you are getting real time data to modulate money supply this problem can be remedied.
What is a Token?
- A construct based in a field called cryptography
- Can represent money (cryptocurrency) can represent a share, a resource, (KWh), a ticket to an event
What are the different types of tokens?
- Protocol tokens including cryptocurrencies
- The original was Bitcoin
- Ether is also a protocol token.
So if cryptocurrencies are protocol tokens, what is ether, the Ethereum token?
- It’s a crypto-commodity / asset existing in the service of the Ethereum platform.
- It mediates the use of the Ethereum platform. You use the token to pay to use the infrastructure.
Let’s talk about ICOs
- [Interrupts] “I like to call TGEs or token generation events, token launches.”
- Meaning the launch of a utility or protocol token indicating that it is not recognized as a security by the SEC.
- ICO implies a token that is a security. You can make a perfect utility token but if you call it an ICO the SEC may understand it to be a security token
What are the other types of tokens?
- Protocol token that drives the function of a protocol.
- Utility Token represents a usage of an underlying platform likely driven by a protocol token
- Ticket tokens
- Resource representing tokens
- Security tokens
How did it feel when you first made money in blockchain investing?
- It didn’t feel much different to other ways of making money – I had already worked for a hedge fund.
Who is making money in blockchain today?
- There are lots of ways of making money in the ecosystem
- Long term holders
- Hedge funds
- Speculative traders
- Soime people are building and selling software
- ConsenSys makes money security auditing software and provisioning software.
- Enterprise and government consulting
- Token launch services
Are there similarities between the Dot Com Boom and the current blockchain token boom, beyond the obvious?
- The Dot Com Boom & blockchain boom are very comparable.
- The Dot Com boom had a massive period of speculation and bubble leading to the creation on the internet as we know it.
- You can’t avoid speculation. Speculators take on risk providing liquidity and the fuel for innovation.
- Because blockchain technology provides a foundation to build far reaching systems it presents an opportunity people pay attention to.
- Speculation creates fear and greed cycles preventing price discovery.
- We can build rapid transaction systems moving value, making tramnsations closer together, creating something comparable to exponential speed increase in value creating over time
Is the blockchain space truly non-conformist, or is it really just the old paradigm in new wrapping?
- Was formed as a reaction to existing systems – bitcoin a decentralized money protocol in opposition to centralized money protocols.
- Revolutions start that way – as counter culture but if it’s a good idea it becomes a norm. We are moving toward a decentralized, equitable status quo. Mainstream.
“It’s going to be not at all counter-culture, just better culture”.
Isn’t Blockchain really all about a bunch of people trying to make money?
- It’s some people trying to make money – money represents sustainability
- A lot of people want to build better systems
- The vision of ConsenSys is to help the world build better systems.