Jay Addison Technical & Media Advisor of CryptoBiz Magazine Interviewing Daniel Larimer CEO Bitshares at INSIDE BITCOINS Las Vegas. Daniel Larimer is the founder and chief developer at BitShares, an open source software company based in Virginia. He is the originator of the concept of DAC’s, or decentralized autonomous companies and one of the thought leaders in the decentralized industry.
Transcript
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this is jay addison from crypto biz magazine we're live in las vegas from the inside bitcoins convention we're here with daniel larimer the ceo and founder of bitshares daniel tell us a little bit about bitshares well with bitshares we're taking bitcoin and we're making it profitable and bringing cryptographic usd dollars that are uh as secure and easy to use as bitcoin so making more stable for the traditional financial audience right the the average man on the street wants the features bitcoin provides being able to transfer money anywhere in the world being able to store it in your head not be having your accounts frozen they want these features but they don't like the volatility so bitcoin is not very good as a medium of exchange because you buy it and you sell it as fast as you can when you pay for something and all the bitcoin processors out there are taking a huge spread so the cost of doing purchases with bitcoin is not sustainable base mostly because of the volatility so what we want to do is we want to create a transparent banking where we create bitusd by collateralizing it with a crypto asset so that so the people who want price stability and the people who want leverage can meet and then uh back bitusd with a crypto asset by 300 so you're protected against the volatility and you still have all the benefits of bitcoin but perhaps the most exciting thing is there's so much demand for people to be invested in bitcoin everyone thinks it's going to grow as as you get the network effect and these things grow people going to want leverage to short it so they can buy more so they want to borrow dollars to sell them and when they do that they pay interest and they bid up the interest rate and all that interest that gets earned from the people wanting to speculate on the rise of cryptocurrencies can get paid to the people who want price stability so you can buy bitusd and earn a higher rate of return than you can at any bank in the united states so how does someone buy bitusd today today it's it's very young and we're still working on get all the infrastructure in place working with banking partners to provide on-ramps and off-ramps so you can wire your money in have it converted for very low spread we're talking about fractions of a percent and uh then being able to spend it as easily as a credit card or bill pay and once we can once people see that you can do that it's going to be game changing for the crypto industry because now hey this these are as good as dollars and i can get a high rate of return the amount of capital is going to be flowing it's really going to change the game it sounds like it so you have bitusd what others do you have against a fiat currency you can create a derivative uh against any asset you can bit gold bit silver and you can trade bitgold versus bitusd versus bitsilver on a blockchain entirely decentralized without any counterparty risk and that's really going to shake things up because where else can you actually get a positive return while being exposed to the price movements of gold and silver that's for sure so this this is a 200 300 reserve gold or silver system and it could really change how finance works yeah it really sounds like it sounds like it's going to be something that bridges the old financial world with the new financial world right it's a decentralized consensus making system that's what bitcoin is all about can we reach consensus of who owns what and how much value so we've done that with bitshares but shares x it's been rising it's currently number four uh and it's gonna be very interesting to see how things evolve because bitcoin is not sustainable it's losing 500 million dollars a year to fight global cooling because all that they're diluting their shareholders to fund work that has no returning value uh and if you view bitcoin as a company it's like raising capital to burn it and you can't keep doing that forever bitcoin requires a million dollars per day to flow into it just to break even to pay the miners right for the miners and and it's not really buying you decentralization it's not buying you security and in our system we really try to focus on the company analogy and focus on profitability uh of the system it's got to produce more value than it consumes so that the users of the system can have a secure sustainable economic foundation that sounds great so for the financial audience that wants to get involved that wants to buy bitusd how do they go about doing that you can buy in right now by buying bitshares x on various exchanges bitter we're getting listed on some others you can go to coinmarketcap and you can see us there and all the exchanges that are listed there you can visit our website at bitshares.org or bitsharestalk.org if you have questions daniel larimer ceo and founder of bitshares thanks kindly for your time today thank you magazine live from meckler media's inside bitcoins conference in las vegas remember to subscribe to crypto biz magazine at cryptobizmag.com follow us on twitter at cryptobizmag thanks for joining us and learn more at cryptobizmagazine.com