According to Michael Casey, Bitcoin solutions stand on something bigger than the blockchain community thinks. In this episode of Diva on The Block, Kiana Danial is joined by Michael Casey, the chairman of CoinDesk’s advisory board. He is also known as an educator at the MIT Media Lab and a veteran at The Wall Street Journal. In this episode of DOTB you’ll find topics such as:
- Bitcoin’s standing in the financial markets
- Trust issues concerning blockchain
- International problems blockchain could possibly solve
- How Michael Casey got into blockchain coming from a traditional financing background
Falling Down the Bitcoin Rabbit Hole
In 2013, when Michael was writing as a columnist for a journal about macroeconomic currency and similar themes, he stumbled across bitcoin (BTC). He found the topic interesting, so he decided to look more into it for his next write-up. That year, the bitcoin price was also spiking because of the Cypriot financial crisis, which made him more interested.
When he got invited to a dinner with several prominent leaders and entrepreneurs in the bitcoin space, Michael had a realization. He understood how bitcoin stood far more significant than what most people thought it was. He also believed that it could potentially be the solution to the problems of developing nations.
Michael Casey: Bitcoin Stands On Something Far Bigger
Trust Issues on the Blockchain Technology
Amid the growing blockchain technology, there are also issues (hacking, scams, and frauds) threatening the private usage of bitcoin. According to Michael, the hacking happens on third party entities that have started to provide external services, which is an institutional problem.
Michael added that he sees this as an evolution. It will take some time before the blockchain technology comes to a level that it can scale and be accessible to everybody on a mass level. The blockchain is a complex system with nobody in control and that where we lose is only part of the failing process. Currently, it’s still at a volatile early stage of evolution, where an enormous amount of open source development is still going on to solve many of these problems.
Streambed Media – Michael Casey Bitcoin Solutions
Michael and his team are launching a company called Streambed Media. It is a tool that uses certain aspects of blockchain and cryptocurrency technology. The team aims to unlock financing and allow creatives to be more actively engaged with their audiences. With that, they’re building whole systems of value that don’t depend upon Facebook or YouTube as distribution platforms. One essential part of the Streambed system is that it is storing data around the creator’s rights – who created it, which day, what is it about and the demanded payment terms.
What’s Michael Casey’s Favorite Cryptocurrency?
Michael argues that the best currency may have nothing to do with the quality of the coin, but it has much to do with the size of its community. He gave the videotape format war back in the 1980s as an example when VHS beat Betamax, wherein more people were using VHS as a standard than the superior technology Betamax. Likewise, Michael also believes in Bitcoin because of its far bigger and more engaged community. He also added that he sees Bitcoin as a competitor to digital gold. Its actual qualities in a digital sense, according to Michael, are a far more superior version of gold.
Comparing Bitcoin and Gold Prices
Gold investors often turn to the precious metal as a hedge for when the rest of the financial markets are doing poorly. Taking a quick look at the Gold prices and comparing the chart to that of Bitcoin, you’d notice a correlation.
This shows that institutional investors are turning into Bitcoin when the equities markets are doing poorly. They then dump their digital asset holdings to buy stocks when prices drop. Bitcoin’s correlation to Gold has become more vivid after the 2017 bubble burst.