Overstock's CEO, Patrick Byrne, tells Fox Business that he wants to get out of the retail and enter the blockchain business, despite falling crypts prices.
Patrick Byrne says that Blockchain is a technology that is here to stay and that the blockchain revolution has more potential than anything we've seen in history. "Bigger than the Internet revolution and how it will restructure society." This is what interests him, the actual progress in blockchain innovation instead of worrying about what the specific currencies are doing on a particular day.
Byrne said he announced the interest of Overstock in blockchain about 4 years ago and has "very interesting positions with 19 blockchain companies". In his eyes, 2019 will be the year in which real-world blockchain products will finally be released. These products include "security tokens".
He said last November, Bob Grayeldfi, president of NASDAQ, said: "every action and bond you see today on Wall Street could be tokenised and will be tokenized in five years". This is just a further proof of the blockchain technologies that replace and build the bags of the new world.
When asked why a security token is superior to the purchase of a security, Byrne replied with three main reasons:
- 90% lower regulatory costs
- Complete transparency for regulators
- Immunity from Wall Street Manipulation
Security tokens and blockchain technologies will help prevent Wall Street from playing with financial markets like they do now. Combine the best of both worlds in terms of functionality and resolution of fundamental problems.
Security tokens will be the ICOs of 2019
A NASDAQ The article notes that improvements in infrastructure and in the regulatory environment will create a tsunami of security tokens that flood the financial ecosystem. The novelties of these blockchain products are the combination of risk capital and utility tokens.
Source: Rohit Kulkami, NASDAQ
Regulators are keeping an open mind and want to avoid stifling innovation within the fintech space. This is particularly true as institutional investors jump on the encrypted bandwagon.
The cryptocurrencies are "here to stay" Allianz Chief Economic Advisor
According to Mohamed El-Erian, who attended the Coin Desk conference in New York, cryptocurrencies will gain wider acceptance when institutionalized investors join the space. "Initially I did not distinguish between cryptocurrency and underlying technology, I treated it as one," said El-Erian. "How I evolved … I learned in the process."
In the beginning, he was not sure about the legitimacy of cryptocurrencies as a global currency. He changed his mind after gaining a better understanding of the technology of distributed ledger (DLT.) Di blockchain. Virtual currencies offer a level of secure Internet transactions, an improvement over our current methods for transient transactions.
"I think the cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem, they will not be dominant like some of the first to believe they were," said El-Erian.
Mohamed forgets to mention how the technology industry swallows the banking sector, forcing banks to adapt and fit into mobile phone apps. Moreover, unlike cryptocurrencies, the current financial industry is missing "antifragility"And it is supported by governments. A problem that Satoshi Nakamoto wants to solve with Bitcoin.
Image source: "Flickr"