Nick Szabo is a pioneer in the field of cryptocurrency and cypherpunk who proposed it in the 1990s smart contracts Beside gold bits, the predecessor of Bitcoin. He has also written some of the most influential articles in the cryptocurrency space, including Bombing: The Origins of Money, “ “Trusted third parties are security holes” And the Money, blockchain, and social scalability. “
In Bitcoin 2021, Szabo will talk about Bitcoin and the history of money. In this short interview, Szabo reviews the themes he will present on stage.
The history of money for centuries has been dominated by either precious metals – especially gold – or government-mandated paper currency. How does Bitcoin fit into this date?
The history of money is related because Bitcoin solves a number of fundamental historical shortcomings of both precious metals and cash: costly delivery and insecure custody, expensive and/or trust-based validation, and digital centralization.
How does Bitcoin solve these problems?
“Expensive delivery and insecure custody are the same problem for gold, but it is solved by Bitcoin in two different ways. The first is solved by the global seamless transfer of control, and the second is mostly but not completely solved by good key management techniques, such as multisig.
“Expensive and/or trust-based validation is solved by validating all inexpensive and trust-limited transactions in Bitcoin, so there is no need for IOU coins or banknotes with their trust to be abused.
“Digital centralization, established either under the gold standard of bonds and securities – enables and incentivizes financial control, turning money into an unreliable store of value, the most avenue for political activity and the least avenue of exchange. Bitcoin is fixing this through decentralization resistant to censorship.”
What impact do you think the introduction of Bitcoin could have in the context of the current fiat currency system?
“Our experience in 1971 and more led to a growing mountain of global debt, both public and private, raising the risk of inflation on the one hand or debt collapse on the other. Bitcoin fixes this by being an easily validated form of hard money. With a publicly auditable money supply, with its ceiling of 21 million being a super store of value that will be resistant to inflation and aggressively competing, notes Michael Saylor, with hundreds of trillions of dollars of fiat-denominated securities.”
Szabo will deliver his keynote address as he expands on these topics in Bitcoin 2021 Miami Conference On June 4th at 10:10 a.m. Make sure to set a reminder for Bitcoin 2021 Day One YouTube Live Streaming and one for Bitcoin 2021 Day Two on YouTube Live Stream right Now. Also be sure to follow Szabo TwitterRead more of his content on his site Uncountable Blog.
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