Freakonomics Radio

510. What Problems Does Crypto Solve, Anyway?

12 snips
Jul 7, 2022
Antoinette Schor, an economist from MIT's Sloan School of Management, dives into the complexities of blockchain technology. She discusses how blockchain could revolutionize power dynamics, shifting control from corporations to users. Schor highlights the challenges of implementing decentralized finance and the implications of digital currencies. The conversation also touches on the necessity of new evaluation metrics for crypto, the historical context of regulations, and a humorous tale of a failed NFT rocket launch, illustrating the unpredictable nature of this emerging landscape.
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INSIGHT

Web3's Promise

  • Web3, built on blockchain, aims to decentralize finance and data ownership.
  • It shifts control from large tech companies back to users.
ANECDOTE

Unfulfilled Promises

  • Bitcoin, intended as digital currency, isn't widely used for everyday purchases.
  • NFTs, meant to empower artists, are plagued by scams.
INSIGHT

Stablecoin Instability

  • Stablecoins, pegged to real-world currency, aim for price stability.
  • However, some stablecoins, like TerraUSD, have collapsed, revealing instability.
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