Shervin Pishevar says cryptocurrencies could eliminate ultimate middle man: the state

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Shervin Pishevar ranks among the most widely respected figures in the world of tech finance. He is the founder and CEO of Investment company, a firm that has been responsible for the creation of such big-name tech companies as Uber, Airbnb and Virgin Hyperloop. Shervin Pishevar is also a noted tweeter, having a following of more than 100,000 of the tech world’s best and brightest thought leaders and influencers.

One of the topics about which Shervin Pishevar often finds himself tweeting is the huge potential that cryptocurrencies have to disrupt and even displace states. Shervin Pishevar says that the entire concept of a middleman is fundamentally extractive and represents a market inefficiency by its very definition. Shervin Pishevar believes that cryptocurrencies could make states irrelevant throughout much of the economy, not by convincing them to step aside but by making it impossible for them to exercise legitimate power.

Shervin Pishevar says that, when properly engineered, many of the security functions that the state uses to claim legitimacy, such as the overseeing of markets and the financial system, could theoretically be built into an advanced cryptocurrency platform. In this view, says Pishevar, the currency itself would be a sort of platform, containing within it not just the means of payment but all of the security infrastructure to prevent the currency’s debasement, prevent theft and stop systematic fraud. While he says that this may sound farfetched, it is no crazier than believing that government itself, one of the most proven-incompetent of all human enterprises, would be capable of protecting the best financial interests of its citizens.

In fact, Pishevar says that governments across the developed world are increasingly losing credibility. And he expects that trend to continue as a result of the extreme monetary foolishness that he says will eventually wipe out the majority of wealth held by the middle class. Once the very idea of the state-led economy loses credibility with the average citizen, Pishevar says that this will create a huge vacuum into which will be able to step a fully mature crypto-economic system.

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