In his recent talk, Vebo Norby, CEO of DRiP, suggested that blockchain technology reduces speculation due to its transparency and rapid flow of information.
Speak to the audience at Solana Breakpoint, Norrby user A simple prop, a bag with a purple wig, illustrates how knowing what’s inside eliminates speculation.
Compare this transparency to blockchain technology, where all participants have access to the same information.
“A blockchain is a system where everyone knows all the information at all times. It’s very difficult to say that there is no speculation, because, again, anyone can speculate on anything at any time.”
Vibo Norby
Norby pointed out that speculation arises when people do not fully understand a situation. In traditional markets, investors often guess the value of assets based on incomplete information.
But blockchain technology works differently: making every transaction visible on a public ledger eliminates the need for speculation.
Blockchain speculation
To emphasize his point, Norby touched on the concept of loans in blockchain and DeFi.
In traditional lending, loans are often based on credit and vague valuations, leaving room for speculation. On-chain lending, on the other hand, requires full collateral — meaning the loan is fully backed by the value of the asset, which can be seen and verified publicly.
Norby sees this as making it less speculative.
While the rapid rise and fall of token prices may seem speculative, Norby explained that this is simply the market discovering the true value of tokens quickly. He suggested that faster blockchains like Solana (SOL) further reduce speculation by enabling near-instantaneous price discovery.
According to Norby, many tokens lose value quickly because the market immediately identifies their lack of fundamental value. While speculation cannot be completely eliminated, Norby believes that the transparency and speed of blockchain technology make it inherently anti-speculation.
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