Although Bitcoin has been around for more than a decade, it’s still relatively new in the global economy, and it certainly hasn’t quite been embraced by the public sector as quickly as it has been in the private sector. As Bitcoin continues to mature and grow, is there a space for it in the federal landscape?
Unchained Capital Co-Founder and Chief Science Officer Dhruv Bansal argues that there is, but it will take some time, patience and a thoughtful approach. In a new video interview with Executive Mosaic, Bansal acknowledged the potential pain points behind Bitcoin but also highlighted the potential long-term benefits of adopting such an “exceptional” piece of software.
“Bitcoin is new, it’s scary, it’s novel, it doesn’t work the way that we expect it to. And at first order, whether it’s the energy usage, whether it’s the freedom of transactions and the uncensorable and private nature of them, whether it’s the idea that attacks and computer security become more profitable and immediate — these can be very scary first order effects,” Bansal shared. “But I think the second order effects can be really positive.”
“I think the long term outcome is actually a better system, a more robust system, a more distributed system that is fairer to its participants and better aligned with their interests than the centralized systems that we have today,” he added.
Bansal said he hopes for a nuanced response from the government as Bitcoin grows more popular around the world.
“If we react too quickly out of ignorance or fear or lack of familiarity, we set ourselves back as a nation with respect to the rest of the world that is more open, perhaps, to embracing Bitcoin and witnessing the changes that it will create in their societies,” warned Bansal.
The good news, he shared, is that Bitcoin is popular in the U.S. and its users are willing and eager to advocate for its balanced, smart and informed adoption in the federal space.
“Bitcoin is here to stay. We’re not going to get rid of it, and it’s not something we want to get rid of. It’s going to make the world better. It’s going to be a painful transition. But if we can guide it and respond in a nuanced way, I think we’re going to get the best out of it,” Bansal noted.
Watch Dhruv Bansal’s full video interview here.
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