Coinbase CEO Touches on Desire of Seeing a Killer Blockchain App, Overthrowing Corrupt Dictators
Brian Armstrong, the CEO of Coinbase, has recently participated in a live Ask Me Anything (AMA), which you can see here.
During the session, he talked about the need of an iPhone or Netscape moment in the crypto industry and his plans to “overthrow corrupt dictators”.
Cryptos Need a Killer App
While talking about the most important aspects for Bitcoin and the altcoins to reach mass adoption, Armstrong highlighted three points: volatility, scalability and usability. According to him, these three factors were the most important ones in order to talk about the market and its failure to be mainstream until now.
It is hard to actually use cryptos as a means of exchange if the prices keep going up and down. The transactions may take some time, in some cases, and the values may change a lot in a single day, which can become a hassle for merchants.
Crypt, he believes, needs to go to the utility phase, and this means to overcome the volatility phase so that people can stop speculating and actually use it.
The second important factor is to be scalable. Adoption will certainly make the blockchain get slower and clogged, so it is important that this can be properly addressed or issues will prevent the tokens from being used by the mainstream. Second layer solutions are a good way for that, but crypto really needs to scale to the level of Mastercard and Visa.
Finally, the usability factor was mentioned. Crypto is still very complicated and needs to get more friendly so that people who are not tech-savvy can also participate in the industry. Without this, the industry is doomed to fail to reach a massive adoption.
People want something like an iPhone or Netscape, he said. They want a killer app. Something that will make their lives so much easier that they will have no choice but to start using it. Cryptos are currently failing in all of these three categories, so they need to really upgrade their game if they plan on finally reaching acceptance among people.
Armstrong also talked about overthrowing dictators during the AMA. When he was asked about the most ambitious thing that the company wanted to do in the next five years, he promptly answered that it was to
“overthrow some corrupt dictators in the world”.
While the idea could be considered positive, the CEO of Coinbase was criticized by Breaker Mag, which reminded that the company has recently hired hackers who already worked for dictators before.
Back in February, Coinbase acquired Neutrino, a company focused on blockchain analysis that was hired to monitor the clients and define if they were in shady financial deals.
Not only Coinbase is accused of freezing accounts with little explanation about why this was being done, but it was also found out that some people from Neutrino already worked for authoritarian governments, which started the #DeleteCoinbase movement (which was obviously not very successful).
The company only cited a “gap in our diligence process” when acquiring the company and that was it. Therefore, it can be seen as some sort of hypocrisy that Armstrong talks about one thing but does the exact opposite thing.