The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Cardano Founder Charles Hoskinson: Crypto Must Deliver Key Service to Rival Existing Money System

by Daily Hodl Staff
May 25, 2020
in Altcoins, Bitcoin, Blockchain
[the_ad id="93550"]

Co-creator of Ethereum and founder of Cardano, Charles Hoskinson, says a long-winded chain reaction to central bank monetary policies are on track to drain small to medium-sized businesses — while padding and propping up Wall Street and the wealthy. As countries navigate their way through a looming recession or depression, Hoskinson argues that cryptocurrencies will have an opportunity to challenge the existing financial system.

The chief executive of IOHK, which is the research arm behind Cardano, a blockchain-based platform designed for the seamless transfer of digital funds across borders using the cryptocurrency Ada, Hoskinson says the working class and the poor are bound to bear the brunt of the fallout of an asymmetrical depression due to the drastic measures being used to stop the spread of the virus.

In an interview on the FinancialFox, where Hoskinson gives an update on the recent developments of Cardano, he takes a look at the macro economic picture to gauge how things may unfold.

Up ahead: harsh economic consequences that will slam less privileged groups.

While consequences will be dire, they’ll also open an opportunity for cryptocurrencies to emerge and lay the foundation for a new and more equitable system.

Says Hoskinson,

“If you shut down all your supply chains, your restaurants, your entertainment industry, and you start saying elective procedures are no longer allowed to be performed at hospitals then what ends up happening is you’re furloughing a very sizable chunk of your economy. Then they can’t pay their rent. Then the landlords are in trouble. You have a credit crisis that occurs, and of course, consumer consumption starts crunching up everywhere. People stop buying cars.

Obviously there’s no vacations right now, so all the hotels get hurt. All the travel industry gets hurt, and then the people working in those industries no longer have disposable income. So they stop buying things. So the luxury goods market falls apart and then those people suffer. So you have this wave of wave of wave of wave of things that occur until eventually you push the economy into a depression.”

Hoskinson says it became clear in February that the lockdowns in Italy would end up having a major impact on small-to-medium sized businesses, the middle class and the poor.

“What’s really strange though, is there’s this counter cyclic push where the stock market is gaining value. And the principal reason for that is because central banks are just mass printing money and dumping it into the economy.

So basically the large companies are getting a bail-out, and this is why their stocks are doing quite well, especially tech companies, because they also have the huge surge of people staying at home consuming their services. So Netflix and Google, they do pretty well in these types of things. But mainstream and small businesses are just devastated.

[the_ad id="95413"]

New York City has about 20,000 restaurants. About 10,000 are going to go out of business, if not more, as a direct result of this. Most of those are small businesses. The agricultural sector in the United States is just devastated as well. They told farmers just to butcher their cattle, their sheep, their pigs. They get very little money for this, and it doesn’t even enter the food supply chain.

So it’s an asymmetrical depression where the rich are doing quite well, and large businesses are doing quite well and will end up making a large profit from this. There’s going to be a lot consolidation from this. But the small businesses are devastated as a consequence of these lockdowns. It’s extremely harsh on them.”

Hoskinson predicts that it will take another six to nine months before we see the real economic impact of the lockdowns.

But no amount of money printing will create productivity, he argues, and complete belief in today’s traditional money will eventually erode.

“It’s just numbers on a spreadsheet. And because people have faith and trust in it, they’ll believe that money for a short period of time. But then over time, they lose faith and credibility in it. What ends up happening is it actually is a wealth transfer, if not to the poor but to the wealthy, because the wealthy get first access to that valuable money.

Then they can use it to diversify. Whereas the poor get the table scraps and their buying power goes down further and further.”

Calling the reinvention of money a journey, Hoskinson says people will naturally turn to novel solutions such as Bitcoin, which he believes is currently delivering as a good store of value – like gold.

“The existence of an asset [like Bitcoin] gives you the dimension of freedom that you need to start monetary innovation and start exploring and creating stablecoins and all kinds of financial products which could become dollar replacements.”

Cryptocurrency’s ability to displace fiat currencies will hinge on its ability to create credit and effectively leverage the principles of modern financial services that allow people who lack the capital they need to buy big assets, such as houses and cars, to borrow money and for lenders to charge interest. But that will require cryptocurrencies to shed its hallmark trait: susceptibility to epic price swings.

“Debt-credit is a very difficult thing to practice, to institutionalize. It requires stable money because [the lender] needs to be paid back in something with predictable value over time.”

Hoskinson names Nexo and Celsius as two examples of platforms that are reimagining money and laying the foundation for new financial services based on crypto.

“So unless cryptocurrencies can enable an alternative credit system to the current banking system, they never will displace it. But we are making enough monetary innovation where there’s a very good reality where I think within 5 to 10 years we’ll have a legitimate stablecoin and be able to really get good stability in our ecosystem.”

l

[the_ad id="95413"]
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Pla2na/Kuklos

Submit a Press Release

Industry Announcements

  • Binance Launches Free Tax Tool To Provide Tax Details for Crypto Transactions in First Step of Global Launch
    February 6, 2023
  • BlockJoy Secures Nearly $11 Million From Gradient Ventures, Draper Dragon, Active Capital and More To Launch Decentralized Blockchain Operations
    February 2, 2023
  • Peer Acquires Elite Team of Engineers Behind Zenly’s Popular 3D Maps
    February 1, 2023
  • Sign Up Today for the TRON Grand Hackathon aka HackaTRON Season Four
    February 1, 2023
  • MegaWorld Land Gameplay on BNB Chain Starts February 15, 2023
    February 1, 2023
  • Web 3.0 Hackathon on Astar Sponsored by Toyota Motor Corporation
    February 1, 2023
  • Match-Trader White Label by B2Broker Gives Brokers a Comprehensive Online Trading Platform With B2Core Integration
    February 1, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$22,869.13
$22,869.13
0.58%
Ethereum
$1,627.29
$1,627.29
0.46%
Cardano
$0.384043
$0.384043
3.38%
XRP
$0.392562
$0.392562
2.75%
Dogecoin
$0.090295
$0.090295
2.51%

Spotlight

  • Legendary Trader Peter Brandt Says Bitcoin Flashing Rare Bullish Signal – Here’s His Target
    January 31, 2023
  • Rich Dad Poor Dad Author Details Why Bitcoin Is Exploding, Says Top Crypto Is One of the ‘Hottest Subjects’ on Earth
    February 2, 2023
  • Action Is Needed To Regulate Crypto Assets That Are Not Securities, Says CTFC’s New Chairman
    February 5, 2023
  • Analyst Who Accurately Predicted 2018 Bitcoin Bottom Forecasts ‘Finale’ Rally for BTC – Here’s His Target
    February 1, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl