What you are going to LEARN in this episode:
Why Bitcoin is the Austrian School of Economics in ACTION!
How Entrepreneurship helps others create, retain and utilize their freedoms
How money is formed in prison
Why community coins, like Steem, are so significant
My guest today is Charlie Shrem, Bitcoin pioneer, founder of BitInstant, Founder of the Bitcoin Foundation and serial entrepreneur. Ever since I met Charlie at the 1st Latin American Bitcoin Conference (in 2013), I was super impressed with how he saw the world. He’s a young guy, still in his mid-20’s, and his mind is constantly looking for ways to build and create value for others. The true mindset of an entrepreneur and I noticed it right away.
In high school, Charlie found that he was proficient with computers and created a business around solving computer and printer problems. In college he saw the success of Groupon and created a similar business where he would sell excess inventory from local warehouses. In his senior year of college, while studying Economics, Charlie found Bitcoin…and it changed his life.
As a self-proclaimed student of the Austrian School of Economics (www.mises.org), which of course he didn’t learn about from his college professors, Charlie saw Bitcoin as the Austrian School in ACTION! Common criticism is laid on the Austrian School in the form of “sure, this sounds great in THEORY, but where has it been put into practice?” Bitcoin was finally the opportunity and real-life example that Charlie had been waiting for.
The BItcoin Problem: In 2011, there weren’t many good places to buy/sell Bitcoin. A company called TradeHill was one of the prominent exchanges, but they were slow and prone to wire issues. Losing bank accounts and wire routes were very common for early Bitcoin companies, especially exchanges.
The BitInstant Solution: Seeing this problem, Charlie decided to build a company, BitInstant, to help alleviate the wait times to buy Bitcoin. He could fund his corporate account at Tradehill, and introduce new access points for clients to place orders. Instead of taking weeks to purchase Bitcoin, it now took only a few hours. Rather than wiring to Tradehill directly, you could fund your BitInstant account from ~1M locations in the US including Walmart, 7-11, CVS and Walgreens. Talk about convenience!