The Crypto Double Play

tl;dr: “What’s great about crypto is that it’s both a money play AND a cybersecurity play,” says blog reader Bradley Rotter. Let’s investigate that.

One of the things that you are compelled to do when you start to explore crypto is to try and understand the nature of money.

Probably the best book I’ve read on the topic is Niall Ferguson’s The Ascent of Money.

Play #1: Money
But even that didn’t get me to the point where I fully understood the dangers, and proven fallibility, of centralized systems of fiat money.

You could spend hours and hours investigating that on your own or, apparently, you can just look at Twitter.

In response to an #AskECB question of “Where did you get the money for the QE? #AskECB,

the answer was:

Praet: As a central bank, we can create money to buy assets #AskECB https://t.co/zTQuU4y1ch— European Central Bank (@ecb) March 12, 2019

It’s almost too hard to believe that you can just read this and most people think it is not a big deal.

There’s a part of me that is very worried about what happens if this continues.

Even if Bitcoin/crypto does “win,” the societal disruption that happens as a result is not to be understated.

At the same time, I can’t ignore the signs around me and it would be irresponsible to not plan accordingly.

IN 1980, 1 Zimbabwean dollar was worth more than $1USD (source)

Play #2: Cybersecurity
Over the last few months, I’ve been spending more and more time with companies in the cybersecurity space. I’ve learned a lot. It’s also, I think, a smart move. After all, do you think the cybersecurity market will be smaller or larger next year?

Right.

But there’s a convergence here with crypto systems as well.

As I wrote in a VentureBeat article about CLEAR and the risks of a biometric honeypot, crypto is also a cybersecurity play in addition.

As more and more digital data and as autocrats around the world seek to use it as means of control, decentralized identity systems will become a bastion of freedom and liberty.

Crypto as the Substrate
Money and individual security are two of the absolute foundational layers of positive human existence. If those are compromised, the consequences for liberty and freedom are pretty dramatic and drastic.

Yes, crypto is a financial innovation that is the digital native money. It is also a new paradigm for cybersecurity.

Both are severely needed.