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.

More Publicity for Bitcoin: Jack Dorsey’s Square Is Now a NASCAR Sponsor

Siamak Masnavi

On Wednesday (July 14), Jack Dorsey, the CEO of micro blogging platform Twitter and payment service provider Square, revealed that Square is now sponsoring NASCAR driver Darrell "Bubba" Wallace Jr (aka "Bubba Wallace").

Square was founded in February 2009, i.e. it is 11 years old, just like Bitcoin (BTC). The three co-founders are Jack Dorsey (who is also the company's Chairman and CEO), Jim McKelvey, and Tristan O’Tierney.

Four years after the launch of Venmo, PayPal's peer-to-peer (P2P) mobile payment solution, Square (whose founder and CEO is Jack Dorsey) launched a competitor called "Square Cash", a beautiful, simple, and fun-to-use app, which got renamed to "Cash App" later.

Cash App, which is one of Square's most popular products, allow a user to request money from and to transfer money to another user. Users can withdraw the money via a debit Visa card called "Cash Card" or by transferring it to a bank account.

Cash App started supporting buying and selling of Bitcoin (BTC) in mid November 2017 in a very limited rollout; the feature was officially launched in late January 2018.

Here is a tweet from Dorsey (who is a huge believer in Bitcoin) announcing the news on 31 January 2018:

According to Bloomberg, on 16 May 2018, Dorsey, who is also the CEO of Twitter, shared his belief in Bitcoin with a crowd of crypto enthusiasts at the Consensus 2018 conference in New York:

The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or no, but hope it will be.

It is worth noting that Square also has a crypto-focused division known "Square Crypto"—launched in March 2019—that operates separately from the rest of the company and its purpose is to support the development of Bitcoin and its ecosystem, as Square Crypto Product Manager Steve Lee explained on Twitter in July 2019:

The NASCAR Cup Series is the top racing series of the National Association for Stock Car Auto Racing (NASCAR). Wallace, who happens to be the only Black driver in NASCAR and became famous recently due to the "noose" controversy, currently drives car No. 43 Chevrolet Camaro ZL1 1LE for Richard Petty Motorsports.

Well, yesterday, Bitcoin fan Dorsey, sent out the following tweets to show that Square's Cash App is now sponsoring Wallace:

Featured Image by "skeeze" via Pixabay.com