The cryptocurrency industry has a big fan. Steve Forbes, editor-in-chief of Forbes Magazine and former US presidential candidate, believes that cryptocurrency is going to be a huge part of the future currency ecosystem, and says that it can “save us from government money.”
Forbes recently participated in an interview with Naomi Brockwell on the subject of money and crypto, where he had nothing but good things to say about where digital currencies are headed. He points out that money is used as a tool of measurement, in that it measures value. For money to work, it has to be based on trust; when not measured accurately, the trust falls and the value is diminished. He compared the trust to a computer virus, which, if left unchecked, can invade the entire system.
Forbes brought up the subject of oil as an example of how the trust can be broken. While an increase in oil prices can be seen as an increase in value, this hasn’t always been the case. Twice in recent history, the increase in price has been correlated to the fall in value of the US dollar. The value of oil was not greater, but it only appeared so against the weakened currency.
“Stable money leads to growth, prosperity and innovation” asserts Forbes. “Fooling around with money leads to political instability.” To support this, Forbes talks about the financial situations seen recently in Venezuela and Zimbabwe.
When asked specifically about the creation of crypto, Forbes stated that it is a “cry for help.” It is an indication of waning trust in the governments’ ability to oversee finances. However, he points out that crypto still hasn’t been done right, but it is heading in the right direction.
Forbes explains that no new innovation comes out of the gate clean. They all have had messy starts, from automobiles to personal computers. “It’s all part of evolution,” he says.
As several financial experts have suggested, regulations should be allowed to evolve naturally. Forbes indicates that existing laws on money laundering, fraud and theft should be sufficient to cover the emerging crypto industry as it continues to mature and stabilize. The approach, he says, should be similar to the approach taken by the US government when the Internet was growing up.
On the subject of blockchains, Forbes shows a great deal of support. He believes that blockchains will allow individuals to own their own information again and can help pave the way for a completely redesigned global payments industry that is seamless and more secure.
While we may be in the “Wild West” era of crypto, the industry is not experiencing any growing pains that haven’t been experienced by every other innovation that has ever been introduced. There will always be proponents and opponents, but no one can refute the idea that crypto is here, and it’s here to stay.