Cryptocurrency Universe Expands Far Beyond Bitcoin
The code base is increasing and improving every day as computer science graduates from top schools jump on board.
Even top economists don’t fully understand the potential for cryptocurrencies.
Photographer: Luke MacGregor/Bloomberg
A sort of “cryptobrawl” broke out last month at the Milken Institute Global Conference between economist Nouriel Roubini and panel participants more optimistic about the future of cryptocurrency technologies. I had the opportunity to participate in a partial rematch at Battle of the Quants, where Roubini was just as negative and DMS Governance's John D’Agostino presented a moderate defense.
All of the heat concerns the border of crypto and traditional finance, but much of the important stuff is happening far from the border. For example, one of Roubini's claims is that advances in financial technology by existing financial institutions and startups are delivering on many of the promises of crypto-enthusiasts, and these will continue to transform financial markets. That’s true. However, many of those advances were spurred by the threat of crypto-competition. It’s often said that the financial industry uses 1990s technology. A better description is 19th-century paper technology with many layers of patches to automate it, but no redesign.