An Early Investor With holdings in Uber and Airbnb Tells Why He Started Buying Bitcoin in 2009
Jeffrey Wernick, an early investor in one of the many successful businesses like Uber and AirBnB and is also a hard money advocate. If that wasn’t enough, Wernick serves on the advisory boards of DataWallet and Qtum.
He started his career at Salomon Brothers and the National Bank of Detroit. Wernick founded, then sold, the risk management firm AVI Portfolio Services Company, Inc. before focusing on his private investment portfolio. Following is a transcript of the video.
In a recent interview with Sara SIlverstein from Business Insider, Wernick tells about his early investment in Bitcoin and how he started buying it in 2009, the year it was created
Wernick’s initial interest in bitcoin was not just speculation that the price would rise. He believes bitcoin’s value comes from its ability to solve the biggest problems with fiat money.
Ob being asked what made him feel that Bitcoin was going to be the future, Wernick said,
“Now the government can do a lot of things without the consent of the people, because as long as the people don’t have to pay for it, they feel that they’re less interested in it.”
When it came to holding money, he said,
“So we had to create another reason for people to hold dollars, since we couldn’t do it through good monetary fiscal policy, we’d do through force by basically having the all of oil invoice in dollars, so that way, central banks would not – they would basically collateralize by oil rather than gold. So that began the terms of when we had a period of high inflation and complete debasement of our currency, and I became very, very interested in basically a strong currency for multiple reasons. Because what was one of the reasons that drove that was we began to have the periods of deficit finance.”
On being asked on the main problem with money that the cryptocurrency solves for him, he emphasizes on decentralization.
“I think that with respect to – there’s several issues with money that crypto solves. I think first is: Who issues it? Okay, it’s decentralized. So right now, nobody knows who Satoshi is, so essentially there’s no author. We were delivered a protocol and we were delivered a protocol with incentives for people to produce it. And the people who produce it, produce itjust based upon the design that incentivizes them to produce it.
And the incentive mechanism is so well designed up to now, even though I know some people are concerned about some level of concentration, that it has avoided the double spending problem that, essentially, it can’t be – it hasn’t been counterfeited. So nobody’s been able to go in and counterfeit a digital currency yet.”
Wernick thinks that in a world where people don’t trust anything anymore, that it’s good to have protocols that people trust that they control themselves, that are not controlled by third parties.
“So it’s a people’s currency, it’s defined by the people, and it’s defined by rules and a protocol that people trust.”
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