Opinion

Paul Smalera

Video Transcript: Fred Wilson on Tech Tonic Interface

Apr 18, 2013 19:54 UTC

Below is an unedited transcript of the video interview I conducted with Fred Wilson of Union Square Ventures:

PAUL SMALERA, Technology Editor Reuters.com: Today I had a great chat with Fred Wilson of Union Square Ventures. Check it out.

Let’s start with Bitcoin. It’s captured the imagination of tech blogs, there’s been a big price spike, dozens of posts all over the internet. And your own blog is full of savvy readers; I was reading through the comments on it. One of them said, ‘I haven’t even followed Bitcoin because I don’t really understand it quite frankly.’ Can we start there? Can you just tell us from your point of view what Bitcoin is?

FRED WILSON, Union Square Ventures: Bitcoin is a digital currency.  It’s a currency like the dollar or the euro or the yen. But it’s different in a couple of important ways. One is that it’s not based on faith in a commodity like gold or in a government like the US government. It’s based on faith in a mathematic formula. What underlies Bitcoin is math really and there’s a finite amount of Bitcoin that could be created; 21 million Bitcoin in total. We haven’t created all the Bitcoin yet because Bitcoin gets mined like gold would get mined.

Mined in like a computer has to crunch through a program?

To make it simple, computers are searching for matches of block chains and it takes a lot of processing power to do it and when you get a match you own that Bitcoin. People mine Bitcoins and they either keep them, own Bitcoin, or they sell them, exchange them for dollars or yen or they conduct transactions with them.

Fred Wilson on Bitcoin, Airbnb and immigration

Apr 12, 2013 18:17 UTC

This week Fred Wilson of Union Square Ventures sat down with me for a video interview (part of Reuters’ Tech Tonic: Interface series) to talk about a wide variety of topics: Bitcoin, wireless spectrum auctions, Airbnb, immigration, the New York City mayor’s race, even his wife Joanne (the Gotham Gal), and a few others. Why so many topics? Fred’s simply one of the most thoughtful technology investors working today, and peppering him with as many different questions as possible can help us learn how he thinks.

Fred often cites “pattern recognition” as the main job of a venture capitalist, and I think I got a pretty good sense of Fred’s pattern: he understands the mechanism behind a company or technology, and figures out whether his firm can help that company grow. In this interview, he’s an insightful and persuasive defender of the interests of the tech industry, because he very sincerely believes in its ability to do good for people.

Do you think Fred’s take on technology’s promise is accurate? Watch and share the interview and let me know in the comments.

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