Wernick Says Bitcoin Will Solve the Biggest Problem with Fiat
Jeffrey Wernick, Uber’s angel investor started investing in bitcoin in 2009 when it was valued at $1. He believes that it is the ‘currency of the people’.
Wernick revealed his belief in Bitcoin in an interview with Business Insider recently. He said that he acquired cryptocurrency initially in 2009 and since then has expanded his investment. He backed his belief in bitcoin as the solution to current issues and a viable investment instrument for three reasons.
Firstly, he talked about Bitcoin’s decentralized nature and how it isn’t regulated by a central authority. He’s mentioned in earlier interviews that he doesn’t believe in central banking but if it has to exist, he’d rather have it be accountable to society rather than unaccountable and run by ‘technocrats’. Bitcoin protocol prevents a central authority from creating excess Bitcoin on a whim, therefore preventing hyperinflation in the bitcoin industry.
Secondly, he recognizes Bitcoin as counterfeit resistant in the sense that it is nearly impossible for a disrupter to record false transactions on blockchain. To explain this, he said
So we have a currency that can’t be counterfeited, that we kind of know the rules under which how it’s created, and we know there’s a hard budget constraint in how many are gonna be issued. And its distribution through the system is not determined by any authority.
Thirdly, he stated that Bitcoin is easily accessible to everyone since the network is open source and uncensorable.
It is clear that Wernick’s main problem stems from the way central banking functions as is seen by the contrast in his definition of how fiat and bitcoin function in today’s world. For fiat central banking, he says,
Now the government can do a lot of things without the consent of the people because as long as the people don’t have to pay for it, they feel that they’re less interested in it.
On the other hand, he closed the interview by defining Bitcoin in the following manner
So it’s a people’s currency, it’s defined by the people, and it’s defined by rules and a protocol that people trust. And I think in a world where people don’t trust anything anymore, that it’s good to have protocols that people trust that they control themselves, that are not controlled by third parties.
This reflects a common pattern in Wernick’s investment portfolio as apart from Bitcoin, he’s an investor in Airbnb and Uber, both of which are also highly decentralized and work on a sharing economy principle. These two companies were also criticized heavily in their early stage and therefore a lot of analysts say that he may be right about bitcoin as well. The crypto industry is undergoing a lot of waves and developments right now, so it is hard to tell the direction it will end up in.
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