Ethereum co-founder Joe Lubin has spoken about the future of cryptocurrency, caling it a “natural evolution” in the world of money.
Writing for Quartz, Lubin said: “Every time someone comes up with a new representation to manage the physical world, people become suspicious… The European world continued to resist representative money well into the 17th century.
“Later forms of derivative money, electronically transferred over wires and computer networks, also took time to be understood and accepted.”
Cryptocurrencies have been greeted with skepticism, he explains, but this is simply the tried and true reaction to new forms of understanding money. This, however, differs because it is one that “favors truth over state-sanctioned power”.
“Instead of wealth being controlled by a few state actors and the top one per cent, it can be more evenly distributed,” he continues. “While just 1,000 people own 40 per cent of the Bitcoin that has been mined, cryptocurrencies writ large could eventually lead to more wealth distribution through the power of decentralised networks.”
There are many who do not agree with Lubin’s sunny outlook on crypto, with UBS recently claiming that Bitcoin fails to meet the basic criterior to be considered money.
The report states: “Fixed supply and unusual demand dynamics make the system susceptible to high price volatility, in turn making it difficult for Bitcoin to step into the role of money or to be a viable new asset class.”