Understanding Crypto 2: Igor Makarov: Economics of the Crypto Ecosystem

<p>Understanding the complexity surrounding cryptocurrencies is essential in making the correct decisions regarding investing in DeFi technology. To help us understand the basics, we talked to Dr. Igor Makarov who is an expert on cryptocurrency and Bitcoin, particularly Bitcoin and the associated mining processes. He is based at the London School of Economics, where he serves as an Associate Professor of Finance. Dr. Makarov is also the author of several papers focusing on DeFi and crypto markets in general and has provided new insights surrounding governance and mining processes. In today’s show, we learn about the basics of cryptocurrencies, mining and the future of DeFi. In particular, we talk about the role of intermediaries, what drives the prices of Bitcoin, how concentrated mining processes are, the role DeFi in increasing governance, the upsides and downsides of cryptocurrencies, and much more. Tune in to make sure you don’t miss out on advice from a respected figure in the industry, Dr. Igor Makarov!</p> <p> </p> <p><strong>Key Points From This Episode:</strong></p> <p> </p> <ul> <li>A brief outline of Dr. Makarov’s professional background and experience. <strong>[0:00:39]</strong></li> <li>What role do intermediaries play in the traditional financial system. <strong>[0:02:36]</strong></li> <li>Find out if economic rents that intermediaries collect are unwarranted. <strong>[0:03:36]</strong></li> <li>Makarov explains the complexities of cryptocurrencies and the elimination of fees. <strong>[0:06:06]</strong></li> <li>How rents are different on cryptocurrency exchanges. <strong>[0:09:44]</strong></li> <li>Systemic risks associated with the traditional banking system. <strong>[0:11:24]</strong></li> <li>Whether Bitcoin and DeFi can improve banking by reducing systemic risk. <strong>[0:13:22]</strong></li> <li>Learn if blockchain or DeFi ecosystems can exist without human intervention. <strong>[0:15:06]</strong></li> <li>Why it is unlikely decentralized autonomous organizations will improve governance. <str