What is money Vitalik Buterin, the co-creator of Ethereum gave his answer

By November 11, 2020Ethereum
Click here to view original web page at www.explica.co

For Ethereum co-creator Vitalik Buterin, “money is a kind of game.” “If you have points, you make a move and you can reduce your points by one number and increase someone else’s by the same number, so it’s fair game,” he added.

This is how Buterin expressed himself during an interview that was recently published by the YouTube channel Podcastn Out. He added that money “is very easy to configure and fulfills many useful functions, this is what has led it to survive in society for thousands of years.”

This programmer born in Russia 26 years ago, when asked by the host of the podcast, Lex Fridman, mentioned as something remarkable the lack of support that money currently has. “An interesting thing about the 21st century is that a lot of the valuable and important things are not backed by anything,” he said.

“If we look at the future of human civilization, it is possible to have money on a large scale, societies so rich and productive that they can operate successfully without the money being backed by something physical,” added Buterin.

In his statements, the interviewee did not refer to the inflationary consequences that inorganic emission tends to have in the economies that apply it. These consequences could make the money game not as fair as Buterin thinks it is.

Money: motivator, instrument of power and measure of self-esteem

The passing of the conversation led the co-creator of Ethereum to express himself about money in its role as a motivating instrument. He assured that money “is a great motivator and is one of the closest things that exist to a universal motivator.”

The Ethereum Foundation, for example, is aware of this and often offers rewards to those who make significant contributions to the development of the network.

interview podcast money vitalik buterin

Buterin sees money as fair game and finds it interesting that it can work without being backed by anything. Source: Podcastn Out / youtube.com

Also, the developer indicated that money “is a kind of power.” “Money is taken as a way to measure how successful you are.” He then returned to refer to the playful idea of ​​money with which he started the conversation:

If you have $ 4 billion, the main benefit you get from going up to $ 6 billion is that now, instead of being below the $ 5,000 rate, you are above it.

Vitalik Buterin, co-creator of Ethereum.

“So you think that money in the game of life is also a measure of self-esteem?” Fridman asked Buterin. The answer was affirmative, although it came with a clarification: “I am not saying that it is something healthy, but many people feel that way.”

The perfect world for the Ethereum co-creator

The Ethereum community leader spoke about what it would be like, for him, the perfect world from an economic perspective. He came back here to the idea of ​​money as a motivator. According to Buterin, in this utopian world, “every incentive would be aligned in the sense that there is no conflict of any kind between what satisfies people’s goals and what is good for everyone.”

“What would such a world look like?” Asked Fridman. He added to his question: “Does that mean there would still be rich and poor? Would there be income inequality?

In answering this, Buterin momentarily abandoned his utopia and returned to the current reality. “I definitely think that existing economic philosophies end up systematically deviating from utopia in many ways,” he explained.

The overcoming proposal of Vitalik Buterin

After mentioning this, Buterin, who recently contributed USD 1,500,000 for the activation of version 2.0 of the network, made reference to quadratic financing as a better proposition.

This idea, developed by Buterin in collaboration with economists Zoë Hitzig and Eric Glen Weyl, assigns the distribution of funds based on quadratic voting.

“I imagine a point system where, if several people give coins to a person, then the amount of coins received by that person is somewhat greater than the sum of the coins they gave,” Buterin said in the interview.

This system favors those who achieve a greater number of adherents to their cause. If applied by a governmentFor example, voluntary donations from individuals would tell you how much society values ​​a public good, how much should be spent on it, and where funds should be directed.

As Buterin notes on his blog, “Gitcoin grants to fund public goods in the Ethereum ecosystem are currently the greatest example” of quadratic funding.

Leave a Reply

All Today's Crypto News In One Place