“If you’re not into cryptocurrency now, I suggest you to start learning about it because it’s coming hard and fast.”
In this interview style of a blog, I spoke with Charles Lechoux, via a live audio interview and asked him about Cryptocurrency and how it is already changing the present but how it is really going to impact the future of trading.
Leading into today’s topic, we are talking about business and how it’s going to develop in the near future with cryptocurrency. Currently, businesses specifically, you know, small businesses are very much dependent on online based transactions, whether it’s through the likes of PayPal, whether it’s on the lights through BACS, which is bank transfers, but obviously in the next coming years, whether it’s the next two to three years or the five to 10 years mark, companies are going to start really looking into the purchasing as well as receiving purchases through Bitcoins, Ethereum, and many other, cryptocurrencies in general.
I have here Charles with me who I want to speak to about cryptocurrency and how in the future it’s going to develop companies, but cryptocurrency in general, what do you have to say about that?
Well, first of all, cryptocurrency the end product of blockchain technology, blockchain technology actually allows companies to eliminate the middleman which is the same as for example, bank, you can eliminate bank through blockchain technology. And there’s going to be in the next couple of years and it’s already starting nowadays. There’s definitely going to be a lot of new companies and also, already existing companies that will allow payments for cryptocurrencies as it reduces transactional fees. We can say for example, a swift or paper where they take a percentage on each transaction which is required big fee to be honest for certain transactions, as here you can reduce through Lightning Network which is a layer to Bitcoin payment system where you can reduce the fees near to 0% cost. It’s quite advantageous and allows also to actually have live data on the blockchain, which is a network that allows companies to actually feed themselves of the database that blockchain provides, and actually get useful information for the consumers, from the consumers and for the consumers to actually exists in a community as a whole. Companies will then become, in my opinion, a community-based product.
Do you think that in the future, companies are going to be using more accessible tokens or cryptocurrency like we have now of Bitcoin or Ethereum? And that or do you think they’re going to potentially eventually make their own tokens available for people to buy which is then based on another cryptocurrency?
I probably think both in a way, once, you know company can create its own token or its own coin if they have their own blockchain. So mostly tech companies will actually have their own blockchains and will allow users to have you know, they have their specific set of rules inside their blockchain and users will be able to use it or not if they don’t like it. But token wise, yes, companies will actually have a fully full ecosystem around them, In my opinion.
On one project, we are creating a decentralized finance system, as well as a marketplace as well as NFT projects, so there’s definitely something that will allow a company as a whole to include a lot of ecosystems within it.
Nowadays, people are very much used to paying cash, we’re used to paying card people are very much used to seeing money and having the money. How could you explain to people who don’t know about crypto to get them to understand the concept behind it?
Well, it’s quite easy to be honest, for one thing and one of the main things is that people are not highly understanding about finances themselves. That’s one of the main things we need to understand to begin with.
When you go back into when you started school, when we were in school. No one told me about finance and how and what was the purpose of money. Money is a transfer of information, not now but before technology and before blockchain. Your transactions go through middlemen that everyone had trust in AI such as banks, such as lawyers and other many professions where there’s middlemen necessary you know, for as well as insurance.
Nowadays with cryptocurrencies, you can remove the middleman and complete transactions through smart contracts, you reduce those amendments, the number of middlemen. For example, if you pay online, actually, at the moment through Amazon, there’s actually six middlemen, it’s PayPal which uses MasterCard, or visa to actually get a payment. That payment goes through the bank that they have to process, which then goes back to be released to PayPal, because there’s a lot of middlemen inside that protocol. Inside the Swift protocol, these middlemen are going to, not get not get destroyed though they’re going to I believe, they’re going to disappear over time.
The main reason I say this is because I trust maths and the theoretical side, then I do trust people. It’s a bit of a shame, but that’s how the world is going to interact with the companies.
So, you’re saying over time, these third-party transactions are going to sort of phase out because it’s like you gave an example just now. Amazon, they use third party money providers, so payment gateways, which is PayPal, Visa, Mastercard and many others, and they have the transaction fees per request. The point you are trying to get to is that, with cryptocurrency in the coming time that there isn’t going to be those third-party transaction fees, so everyone literally will pay each other straight up, and you’ll get your money? Straight away?
Yes, it’ll be a peer-to-peer payment. Let’s have for example, El Salvador, which is one of the first countries that adopted and now accept Bitcoin as a legal tender. They’ve made and received $500 million, as beforehand they were using Western Union to send funds back to El Salvador, because the local economy at the time and still is, isn’t as good as it could be. And it’s not very good. But most of El Salvador Salvadorians outside of El Salvador, were sending money through Western Union. The fees were unbearable, and they as a country were losing $500 million each year through Western Union transaction fees. So yeah, we can say that the middlemen such as Western Union will phase out pretty soon.
Do you see the greater good of cryptocurrency and does it actually have a benefit on our economies, not just where we are based in Europe, but around the whole world in years to come?
Well, it’s definitely going to help the third-world countries for one and foremost, it’s easy to get a bank account, but it’s even easier to have an internet connection than the bank account. Especially because the bank account you need money to be put into your account whereas it’s not like that with an account on blockchain.
Depending on which type of blockchain it is, most of the time, you don’t need money to actually do a transaction. There’s a couple of blockchains like POS, which is proof-of-state that you need money to actually do transactions. But proof of work for example is mining based. Mining, calculus, mining power, which the hash rate.
But yes, I truly believe that we’re going to see many changes in the upcoming years and people aren’t ready to see those changes because in the newspaper and the way people are talking about it, they’re all pessimistic about volatility. Volatility is quite big in those cryptocurrencies for me, you know, so many people are coming up to me and saying, Well, it’s the fake world. It’s not how it’s supposed to be. But, I mean, most of people, most of the people nowadays have credit cards on their phone and the base through their phone.
Hearing that, we’re already sort of leading into the future of that way of life as we are phone and internet based already. In the years to come our industries are going to adopt cryptocurrency which we can already see with the likes of Tesla and Elon Musk.
And there’s also you know; we can look at Visa and MasterCard. That was, I mean, three days ago, they made they made partnerships with their banks and many banks around the world saying that those banks could allow cryptocurrency products and payments, so when it works, it’s going to come quicker than most think. And if you’re not into cryptocurrency now, I suggest you to start learning about it because it’s coming hard and fast.”
Thanks for your insight on the crypto world Charles on what and how you think businesses are going to have to adopt cryptocurrencies in the near future.
You as a reader, what’s your thoughts on this? Leave them in a comment or email us, we would like to hear your side and perspective.
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