Hashed founder and chief executive officer Simon Kim said that the swift rise in Bitcoin price was caused by a fractured capitalist system that favors quantitative easing. Kim said that this has resulted in widespread inequality in income distribution and increased polarisation in society.
According to an interview given by Kim to South Korean newspaper JoongAng Sunday, Blockchain is a modern revolution aimed at this broken capitalist system, as Bitcoin has exposed more people to a decentralized digital economy.
“A revolution occurred when the economic system and social order were not sustainable, and the weapon of the modern revolution is the blockchain. As engineers have capital, they have the power to design capital systems,” the newspaper quoted him as saying.
Growing digital economy
Kim, who is also a Strategic advisor for SoftBank Ventures Asia, said to the paper that the recent surge in Bitcoin price was a result of American institutions buying the cryptocurrency, in response to declining value of the U.S. dollar. He also cited the gradual transition of many sectors of the society to a digital economy as a confidence booster for cryptocurrency.
Kim said that the growth in maturity of sub-technologies will also solve many of the infrastructure problems related to cryptocurrencies today. He is of the view that the metaverse space, like virtual-reality gaming, will grow and create a lot of jobs in the future.
Not a bubble
Bitcoin has risen almost five-fold from $8,149.31 on 13 January last year, to $40,519.45 on 9 January this year. Kim said that the recent surge in Bitcoin price is not a bubble and here to stay, even after the United States stops its quantitative easing programs. He believes that the blockchain system, on which Bitcoin is based, will grow and cover more sectors of the economy with time.
Kim said that as China has started its own cryptocurrency initiative in the form of digital renminbi pilot project, and is expanding this digital ecosystem to developing countries, the United States will have to follow suit. The momentum in many cryptocurrency projects is also rising this year, he added.