In an interview with Business Insider yesterday, June 12, Jeffrey Wernick explained why he believes in the power and cause of cryptocurrencies, especially Bitcoin, which he had been backing since its very first year.
Breaking Faith With Fiat
Jeffrey Wernick holds a reputation for being a visionary — before Uber and Airbnb exploded to dominate the market, he already saw the opportunity and invested on the startups. And in the very year that Bitcoin was released, he already bought his share.
Wernick took interest in the concept of money way back in 1970 when then-President Nixon suspended the convertibility of gold into dollars. As a young teenager, he pored through history books and understood the evolution of money. But with Nixon’s move, Wernick lost confidence in fiat currencies, saying that it “would cause a debasement of our currency, where we’d have high inflation.”
Now, he noted that the American government does a lot of things without even asking for the consent of its citizens. Those were the reasons why he had broken faith with fiat money.
The People’s Currency
Why crypto? Wernick believes there are several issues with fiat money that cryptocurrencies solve. First is its decentralized nature, which we all know too well. No government can monopolize the use of cryptos; neither can they hoard them, except of course the people allow it, or if the government itself creates its own crypto, as is the case with Venezuela.
Second, there’s virtually no way to counterfeit a cryptocurrency.
“So it’s a people’s currency, it’s defined by the people, and it’s defined by rules and a protocol that people trust. And I think in a world where people don’t trust anything anymore, that it’s good to have protocols that people trust that they control themselves, that are not controlled by third parties.”
In spite of the continual plummeting of cryptocurrencies in terms of price, many more remain staunch in their belief in the concept. We are seeing them rallying ever so faithfully behind the cause, especially now when it matters most.