Cryptocurrencies Are “Fuel for a Potentially New Internet,” Says Reddit Co-Founder

Francisco Memoria
  • Reddit co-founder Alexis Ohanian has recently stated bitcoin and other cryptocurrencies can fuel a new internet, implying they have huge potential.
  • He added that they’re a tool that allows people to hedge against hyperinflation and other monetary policy failures.

Alexis Ohanian, co-founder of social media giant Reddit and early-stage venture capital firm Initialized Capital, has recently touted cryptocurrencies like bitcoin as “fuel to a potentially new internet.” He further defended cryptos as a tool that can protect people from hyperinflation.

Appearing as a guest at The Late Show with Stephen Colbert, Ohanian defended bitcoin’s role as a store of value that isn’t backed by a central government.  Early on in the interview, Colbert asked Ohanian why he would prefer cryptocurrencies over regular fiat currencies. He stated:

“Cryptocurrencies are a fuel for a potentially new internet. Things like bitcoin and cryptocurrency are an opportunity for us to have a store of value that is not backed by a single country.”

Alexis Ohanian

According to the venture capitalist, cryptocurrencies give people the ability to control their own money, and are especially valuable in countries where people have to deal economic uncertainty. This idea, he noted, may sound silly to people living in more developed nations.

Ohanian added that cryptocurrencies are also valuable because they allow us to easily transfer value across national borders, and are potentially less volatile than some fiat currencies. As covered, Venezuela’s inflation rate hit 8,900 percent this year, which helped bitcoin’s adoption reach record highs in the country.

Cryptocurrencies have historically been used to fight hyperinflation. Bitcoin, the flagship cryptocurrency, often trades at a premium in countries where monetary policies fail. Turning to bitcoin helps people ensure they don’t lose their money when fiat currencies plummet.

Ohanian said:

“We sort of take it for granted the fact that we all have bank accounts, and we move money here and there, but for so many people in the world to have actually this security of knowing that what is yours is yours, because it is now digital, could be transferred with you wherever you are going, is actually pretty empowering.”

Alexis Ohanian

The Reddit co-founder recently made headlines, as he predicted Bitcoin will end the year above its former all-time high, at $20,000. Ethereum, per Ohanian, will reach $15,000 by year-end.

Reddit itself is also looking into cryptocurrencies. As covered, the social media giant is set to bring back bitcoin payments, while also adding support for litecoin and ethereum.

Bitcoin Ransomware Attack in Argentina Encrypts a Decade's Worth of Government Files

Francisco Memoria

A bitcoin ransomware attack has recently hit a data center in Argentina that houses local government files, and managed to encrypt a decade’s worth of data that has been started to be decrypted.

According to an interview by the country’s Minister of Science and Technology Alicia Bañuelos with the local news outlet Agencia de Noticias de San Luis, a total of 7,700 GB worth of data were originally encrypted, but so far around 90% of that data has reportedly been recovered.

Bañuelos was quoted as saying:

Bitcoin ransomware attack in Argentina encrypts a decade's worth of government files.

As reported by The Next Web, the attack occurred on November 25 and the exact size of the demanded BTC ransom isn’t known. Reports suggest it was somewhere between 0.5 and 50 BTC, or between $37,000 and $370,000.

Ransomware extortionists appear to be somewhat active over the last few weeks, as they’ve recently managed to hit Spain’s largest radio network Cadena SER, demanding a total of $827,00 worth of bitcoin to decrypt its systems. The attack initially hit a popular IT company called Everis, one of the country’s largest service providers.

Back in July a county in Indiana decided to pay ransomware attackers around $130,000 in BTC to have its systems decrypted, amid a plethora of attackers that forced two cities in Florida – Riviera Beach and Lake City – to pay thousands to the attackers as well.

Featured image via Unsplash.