Grantcoin Part 2: New Crypto Projects Should Build Upon Bitcoin’s Successes
This is the second part of Coin News Asia’s exclusive interview with Brandon Venetta of Grantcoin. You may read the first part here.
Coin News Asia: What do you think Bitcoin needs to become a more prominent and reliable form of payment?
Brandon Venetta: In our opinion, the most important factor holding Bitcoin back from becoming a truly mainstream and widely used currency is that a large percentage of the Bitcoin tokens are held in very few people’s hands, and there is no distribution mechanism built into the system to ensure a widespread fair distribution around the world. Mining does not add enough inflation to solve this problem, and even if it did, most of the mining has also become concentrated in the hands of a small number of parties who can afford special equipment and have greater technical know-how than the average user. Therefore, from an economics perspective, Bitcoin is unappealing to most people who are looking for solutions to serious global economic problems such as inequality of wealth and lack of access to capital in underdeveloped countries. People concerned about such issues and interested in systemic financial reform would be more likely than anyone else to be willing to adopt an alternative currency. New cryptocurrency projects should build upon Bitcoin’s successes as well as learn from its mistakes, to appeal to a broader audience.
CNA: What can you say about cryptocurrency legality and regulation?
BV: We hope more governments around the world will allow cryptocurrency to be legal. We accept the existence of regulation and believe in complying with the law. Having said that, we also believe that regulations should not be onerous or designed to make it difficult and expensive for cryptocurrency projects to exist. Too much regulation gives an advantage to wealthy and powerful companies that are already in the financial industry. Excessive barriers to entry and the resulting monopoly power over the financial system is a big part of the problem in today’s economy.
CNA: Do you think it is hypocritical when Bitcoin supporters who are critical of banks are also critical of altcoins?
BV: Bitcoin supporters should open their minds to the possibility that, just as Bitcoin arose and captured the imagination and support of many people, other alternative currencies based on blockchain technology could enjoy great success, with different models of distribution, different target audiences, and different branding and emphasis. Some altcoins could gain a larger user base than Bitcoin, but only time will tell. We believe there will likely be many complimentary digital currencies in the future. The long-term winners in the space will be the ones that can justify their existence to the average person without techno-babble or speculative frenzy, gain a dedicated community of supporters, and persuade real-world businesses and organizations to use their tokens. We believe Grantcoin has a good plan to become one of the most successful altcoins over the next several years.
CNA: Do you have a Bitcoin price prediction?
BV: No. We believe this is the biggest downfall in cryptocurrency today, that people focus on the price and look at it primarily as an investment rather than as a currency to use in real life. The reason Bitcoin was created was to give power back to the people so that eventually we won’t have to use bank-issued fiat currency anymore, not so that everyone can hoard their Bitcoins and count the dollar value of their stash, looking forward to the day when they will cash out. The whole point of alternative currencies is supposed to be to move your money out of the fiat system, not using fiat as the benchmark for value anymore.
CNA: What can we expect from Grantcoin in the near future?
BV: We will begin a campaign to encourage people to give micro-donations of Grantcoin to charities, artists, musicians, and bloggers using our Twitter wallet app. We will launch a website called GrantMarket, which we envision as a crowdfunding site for all kinds of good causes, people and organizations, using Grantcoin. We will launch our Grantworthy Awards programs where people and nonprofit organizations can apply to win grants of Grantcoin to reward them for doing good.
CNA: Finally, Bitcoin beginners, any suggestions?
BV: Try to look at it from the perspective of what problems does it solve in the global economy. Bitcoin solves some problems, such as making micropayments possible and sending money around the world much faster, cheaper and easier. Those same problems are also solved by all other digital currencies based on Bitcoin technology. Some of them, such as Grantcoin, are also trying to solve other economic and social problems, such as inequality of access to money between rich and poor countries, and the perverse incentive to put profit over sustainability and human wellbeing under the debt-based fiat currency system. Do your due diligence on the various cryptocurrency projects out there, and put your trust in the currency that best matches your values of how you want money to work.
CNA: Thank you very much, Brandon.
Learn more about the rapid development of the Bitcoin Asia situation here at Coin News Asia.