Davos Forum 2015: ‘We Want Bitcoin to Be a Success,’ Says LinkedIn CEO Reid Hoffman

Reid Hoffman, founder and CEO of LinkedIn, says that his hopes rest on the digital currency which is able to show all the advantages of banking to those who still don’t get benefit from it.

LinkedIn founder and CEO Reid Hoffman said during a

LinkedIn founder and CEO Reid Hoffman said during a "Squawk Box" interview from the World Economic Forum in Davos that he remains a believer in Bitcoin, but he says the virtual currency is only in the first inning and it's not for everyone. Photo: CNBC

This year, World Economic Forum is being held in Davos, Switzerland, where world thought leaders have an opportunity to discuss not only pressing problems such as the decreasing oil prices or terrorist attacks but also various reasons to be optimistic in the coming year.

On Wednesday, TIME hosted a lunch discussion during which science and technology bright spots were pinpointed. Among the participants of the lunch such as France Cordova, Director of the National Science Foundation, Jennifer Doudna, professor of chemistry and of molecular biology(University of California), there was Reid Hoffman, CEO of LinkedIn.

Hoffman’s speech was dedicated to virtual currency, he stated that it “could open up the advantages of banking to regions of the world that do not yet benefit from the banking system.”

Speaking about Bitcoin’s potential, Reid Hoffman mentioned the fact that it could impact on the developed world facilitating financial transactions linked to toll payments and parking charges.

“The advice I give my friends is don’t buy any bitcoin that you wouldn’t be comfortable losing, rather like a seed investment in a technology company,” he said during a “Squawk Box” interview, according to CNBC. “Bitcoin will either be a total failure or it’ll be a success and I think we want it to be a success,” said the founder of LinkedIn.

It’s a known fact that cryptography is able to challenge traditional monetary systems. Moreover, Bitcoin being the most popular crypto currency depends on some  algorithms that Apple uses to protect messages that iPhone users send to each other. Some governments ban Bitcoin, saying that it can put in jeopardy their power to control financial transactions.

It’s necessary to say that the discussion of this year contrasted with the last year’s conference, where leaders were attacking the concept of digital currency.

“The question isn’t whether we accept it. The question is do we even participate [with] people who facilitate Bitcoin?” These phrases belong to J.P. Morgan Chief Executive Jamie Dimon.

At this year’s conference the situation is different. Championing of fiat alternatives is discussed.

It’s interesting that Reid Hoffman’s views met Bill Gates’ ones who even advocated for digital currency on US television. Gates said that digital currency required “a little bit of work getting the regulation right, getting the critical mass, getting people to trust it, but the magic of that cellphone with the right software means that [unbanked] people have banking, and that’s really big for their lives.”

Well, the conference in Davos is not over and current financial matters are going to be discussed again and again but it is already clear that Bitcoin observations are likely to be positive.

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