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What makes overstock.com CEO to think about alternate exchange?

Even as the cryptocurrency market is struggling to hold on, the blockchain technology is gaining ground among different sections. One among them is the overstock.com founder and CEO, Patrick Byrne, who is betting big on the technology. Significantly, the comments came following the Bitcoin losing more than 50 percent after hitting nearly $20,000 towards the end of the last year. As a result, the virtual currency is struggling to get past the magical five-figure mark again.

Generating trust among Users

Byrne indicated that Bitcoin reminded him about his distrust on central banking and the feelings on gold. However, he thinks that the underlying technology, i.e. Blockchain, generates trust among users. Incidentally, Overstock.com was the first firm to accept digital currency as a payment means in 2014, according to newsbtc.

While the Byrne is keen on continuing to manage the retail site, the founder has spent his time and money in financing start-ups with blockchain-related technology. This included an alternate stock exchange. As a result, he was dragged into crypto fans and shared his idea for future with the help of a blockchain-related technology.

The founder of the retailer got a big support from the virtual currency community that stood by his philosophy. He believes that there were enough transparent and efficient ways for anyone to trade and still gain from the system. That would mean that the gain was not restricted to those in power alone. Therefore, he is betting on growing blockchain-related technology solutions in the future.

In the next one and half decades, the latest estimates suggested that blockchain-related technology industry could cross the $10 trillion mark. Therefore, Overstock.com founder’s statement should be viewed in the context of out-of-the-box ambitions that was not restricted to retail alone. This included supporting start-ups

During an interview to the media, the CEO expressed his intention to dismantle Wall Street and replace it with a Blockchain stock exchange. Byrne was the man behind in bringing out the Wall Street Corruption for decades. As a result, he chose to raise money with the help of a ‘Dutch IPO’ in 2002. He was well aware of the practices of Wall Street and the institutions practiced over the years.

Currently, he thinks that the existing system could be replaced by putting in a strong and immutable system, which could be 80 – 90 percent cheaper than the past. This could be done by removing all the brokerage fees, as well as, commissions to execute a trade. This was termed as a way forward solution to replace the existing one.

Mischief Can’t Go

Byrne also viewed, “Most importantly all kinds of mischief that goes on Wall Street can’t go on here.” He has now been working on new venture capitalist within the retailer firm to invest in startups based on blockchain technology. The project that is meant to dismantle Wall Street is tZERO that aims to create a platform to take on the traditional stock exchanges. This would be done with amalgamation of cryptographically secure distributed ledgers with current market processes. This would cut down costs and settlement time.

About the author

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Megan Mayle

Megan, while pursuing MBA in California, started writing blogs on the financial developments and revolutions around the globe and soon got caught up with cryptocurrencies. She has been giving consultancy about smart contracts. Megan focuses on latest updates on cryptos from banks and on regulations by governments worldwide.