Blockchain Is Good But ‘Odd’ for Creating Money

In a Fortune interview on Sept. 17, Schwarzman expressed his negative stance to Bitcoin (BTC) – explaining that building money using blockchain technology is “pretty odd” and he does not have much interest in the cryptocurrency because it is hard to understand. 

Blackstone CEO Steve Schwarzman, one of the world’s richest people, likes blockchain but thinks that applying it to money is odd.

“Someone needs to control currencies”

The 72-year old billionaire blamed the decentralized character of Bitcoin, and said he was “raised in a world where someone needs to control currencies.”

Bitcoin only encourages criminal behavior

Schwarzman came out in support of centralization, arguing that global jurisdictions need to control currencies for a reason. According to the businessman, governments want to “make sure the economy is as insulated as it can be from excesses.” Another aspect includes their responsibility to curb the proliferation of dirty money.

Warning that Bitcoin only encourages criminal behavior, Schwarzman said:

“I may be a limited thinker, but that’s a problem. If they could solve that problem and also the problem of controlling the money supply, then it might be OK.”

Schwarzman, who has an estimated net worth of $17.7 billion, expressed support of blockchain technology nonetheless, adding:

“Blockchain technology is a very good idea, and it will end up being adopted because it’s good technology. Applying it to the creation of money is sort of, for my taste, pretty odd.”

While Schwarzman considers Bitcoin and the whole $266 billion crypto market to be odd, Anthony Pompliano, founder of crypto investment firm Morgan Creek Digital Assets, shared a different perspective. He wrote:

“It is wild to think a loosely coordinated group of volunteers around the world have potentially built the next global reserve currency.”

Meanwhile, American venture capital investor Tim Draper recently cited Bitcoin’s complexity of use as the main impediment to mass adoption.

However, he added that BTC will remain the currency of choice in the long-term because fiat currencies are subject to political influence and constant devaluation.

Block.one Awarded Patent for DLT-Based Social Media Bidding System

Block.one, the company behind the EOSIO protocol (EOS), has been awarded a patent for a blockchain-based bidding system for promotional exposure tied to popular social media posts.

The U.S. Patent and Trademark Office approved the patent on April 28. Block.one filed with the office during May 2019.

The patent, which Block.one describes as means to incentivize positive feedback contributions among a social media community, describes a system where bidders can compete to have their profile displayed in a prime position on trending posts.

“One way that posts achieve influence is through positive community feedback,” the filing reads. “Although a user who creates content may receive personal acclaim and recognition through receiving positive feedback, those users who provide the positive feedback oftentimes receive only limited exposure.”

Patented system monetizes every social media post

The filing describes the system as “a computer-implemented method for bidding on a post in a social media platform” where “a first hash value of origin content [is stored] on a blockchain.”

While purporting to incentivize positive feedback, the system potentially monetizes every single post produced on a social media network for both the network’s operators and content creators.

The system works by first verifying the authenticity of a post’s content using blockchain technology – with hashes corresponding to all post data being stored on a distributed ledger.

Bidders will use tokens issued by the platform. Funds generated through bidding will be distributed to the post’s author, the previous higher bidder, and the platform’s administrators.

Patented system expected to be implemented on Voice

The patent will likely be implemented on Voice, Block.one’s social media network, as many similarities exist between the bidding system described and the organization of data on the platform – with Voice writing hashes pertaining to post data to a blockchain, and storing the actual post data on servers.

During March, Block.one invested $100 million in cash and $50 million in intellectual property into Voice. The investment was intended to provide Voice with the resources to operate independently of Block.One.

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *