Former Google chief praised Bitcoin as early as 2014

Last Updated: 7 August 2022

An old video of Eric Schmidt, former top executive of Google, has surfaced in which he calls Bitcoin ‘exceptional.’ He is talking about the technology here, not the potential of bitcoin as a currency.

Sometimes the ways of the YouTube algorithm are inscrutable.

Bitcoin Technology

The video dates back to 2014 and shows a speech at the Computer History Museum that same year. Schmidt says Bitcoin’s technology is important, but at the time, he had a hard head that Bitcoin will be used as a currency.

Many new businesses will build on bitcoin

He stated that the technological set-up of Bitcoin will ensure that many new companies will emerge in the future. In that respect, Schmidt is a visionary. Back then, there was no bitcoin acceptance except among a small group of lucky people.

At the time, he didn’t really like the monetary impact Bitcoin could have on the economy, but the fact that such a big name was talking about Bitcoin in 2014 is remarkable.

Bitcoin important for cryptography

One could even argue that his stance could be seen as a major boost to the asset’s prospects.

‘Bitcoin is a remarkable cryptographic achievement,’ Schmidt said. ‘The ability to create something that is not duplicable in the digital world has enormous value. The bitcoin architecture, literally the ability to have these ledgers that cannot be replicated is an amazing advance. A lot of people will build a business on top of that.’

Schmidt opts for Web3

In April this year, Schmidt was interviewed by CNBC, and it seems he has stuck to his stance that bitcoin’s technology is of particular interest. He does not really talk about cryptocurrencies but is mainly interested in concepts such as web3:

“A new model of the internet where you can manage your identity as an individual and where you don’t have a centralised manager is very powerful. It’s very seductive, and it’s very decentralised.”

The billionaire and former Alphabet technical advisor confirmed that his interest in Web3 revolves around tokenomics, a system that influences the specific supply and demand characteristics of digital currencies.

Schmidt and the crypto industry

Schmidt has cryptocurrency himself, saying he has invested a small amount of money in cryptocurrency, without naming specific coins. During the interview, he said he had just started investing. That interview took place in April, and it is hoped that he was not convinced by Luna’s tokenomics then.

Over the years, he has become increasingly involved in the crypto industry. Since 2021, Schmidt has been a strategic advisor to the crypto company Chainlink. He is also co-author of the book ‘The Age of AI,’ which highlights the future of the technology sector.

Schmidt does not consider all developments in the crypto industry to be equally important. For example, he is critical of existing blockchains and noted that a majority concentrate on ensuring they are not attacked, a factor he considers a waste of time.

Difference from bitcoin

From a purely technology-driven point of view, there is something to be said about this. Perhaps he is comparing it to the early days of Google, where one new product was launched after another, and the plug could just be pulled again easily.

For example, this is indeed at odds with what Bitcoin stands for. If bitcoin is to fulfill its promise as a world reserve currency, stability and security, are precisely what is needed.

Author

  • Steven Gray is a journalist with a heart for crypto. He filters the wide range of news and ensures that it reaches the public in a comprehensible way. He often does this with the support of technical analysis.

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