Home Crypto Binance CEO CZ Takes On Renown Skeptic Paul Krugman In Cryptocurrency MasterClass

Binance CEO CZ Takes On Renown Skeptic Paul Krugman In Cryptocurrency MasterClass

by CryptoFan
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Economist Paul Krugman kicked off a 30-minute conversation with Binance CEO Changpeng “CZ” Zhao. new masterclass course.

Krugman perhaps understates his position on cryptocurrencies and blockchain. new york times digit In it, he described the hype over cryptocurrencies and blockchain technology as a “tragedy” that has resulted in “waste on a grand scale.” He certainly became an ideal sparring partner for his CZ in online classes.Master class offer Decryption Access to the fifth lesson featuring a pair of experts.

“Our rap has always been about what problems cryptocurrencies are solving and what they are actually doing that we haven’t done yet, and as long as there are problems, they will solve them better than others.” I don’t know if it’s possible, it’s the traditional way,” he said.

Zhao responded by pointing out that the original concept of bitcoin and cryptocurrencies was to provide new ways of transferring value, just as the Internet is a new way of sharing information.

“Bitcoin, specifically, is a slightly better form of currency. It currently solves the problem of limited supply, difficulty of use, low flexibility, and not very cheap fees,” Zhao said. said Mr. “If you think about global commerce, international money transfers, remittances, micropayments, etc.

“Frankly, Bitcoin’s first use case was envisioned as payments, and it didn’t work. But there are other use cases,” he continued.

CZ pointed to the crypto’s ability to raise millions of dollars in artist funding and income streams using non-fungible tokens or NFTs.

“It’s global funding. It’s much easier for entrepreneurs to raise money globally,” he said. “A reputable entrepreneur can raise from $10 million to $20 million worth of cryptocurrency in a matter of days using cryptocurrency.”

Krugman was skeptical.

“I’m a little perplexed. I pointed out that it might.

“I think the main big difference is the cross-border nature of this technology,” said Zhao, citing the difficulty of making cross-border payments with traditional banks. “Blockchain provides that, and I think that is the main reason.”

Binance’s CEO pointed out the differences in economic opportunities globally, citing the vibrant economies of the United States and China, Vietnam, and African countries.

Comparing the differences in banking operations between the United States and China, Vietnam and African countries, Zhao said, “It is very difficult for someone outside the United States to transfer money there because of international expedited fees and the like.

“However [that isn’t] It’s not a technical issue, it’s a regulatory issue,” Krugman countered.

Regulation is part of the problem, but Mr Zhao said he sees it more as a legacy issue and the high cost of transferring money from country to country.

“There is nothing in the regulations that prevents people in Dubai from investing in South African projects,” he said. “But the mechanics of doing that are very difficult for traditional financial services.”

Zhao said entrepreneurs can use blockchain technology to access global liquidity pools because technology is making the world smaller.

“Why not simply reform the rules of banking?” Krugman compared the issue to mobile phones, asking why two US carriers could have different policies for the same region. rice field.

Krugman also questioned how long bitcoin adoption has taken compared to innovations such as the internet, saying that the argument that cryptocurrencies are still new is getting old.

“By 2008, if you want to compare the Internet to 1995, we were all living on the Internet,” Krugman said.

Zhao acknowledged that Krugman made a good point, but that what is now known as the Internet was developed by the United States Advanced Research Projects Agency Network (ARPANET) in the 1960s and then developed by the U.S. military in the 1980s. He pointed out that he used e-mail.

“The problem seems to be more with governments and regulations than with technology,” Krugman replied, saying that if he could get through immigration faster when traveling to Europe, he would become a cryptocurrency devotee.Use Global Entry. Noting that travelers can easily enter the United States, he said, “The problem is they are not transferable, and blockchain is useless.

Many cryptocurrency enthusiasts cite the 2008 financial crisis as the reason they need Bitcoin and the industry it spawned. But many question how practical it is to expect the average person to understand technology and its economic implications.

“What’s interesting is that after 2008, after all these disasters, we’re not responding with education, we’re responding with regulation, we’re responding with Dodd-Frank, basically trying to bring the financial system under the umbrella of prudentiality. Regulations,” Krugman said.

“Isn’t the lesson from all that not to expect high schoolers to be able to understand everything you’re telling me?” he asked.

“Not black and white,” Zhao replied. “From a regulatory perspective, I think it is important that regulation continues to evolve with new technologies and new industries to protect consumers.

Zhao added that at the same time, people need to learn how to protect themselves.

“There is no perfect solution. I am not saying that education solves all problems. [but it would] It will improve a little bit,” Zhao said.

Krugman said the net of regulations will expand over time, adding that he believes most cryptocurrencies are being used to circumvent and circumvent regulation. Still, he thinks cryptocurrencies will survive, “but they will be indistinguishable from regular finance.”

Founded in 2004, MasterClass is an American online education subscription platform that offers pre-recorded tutorials and lectures by experts in various fields. “crypto and blockchain“The MasterClass course also includes sessions by Emilie Choi, President and COO of Coinbase and Chris Dixon, General Partner of Andreessen Horowitz.

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