Ethereum CEO Vitalik Buterin believes that continued competitiveness between China and the US could help cryptocurrencies prosper.
Buterin gave his take on the war between China and the United States in an interview with Morgan Beller, a partner at venture firm NFX. The United States has been in a trade war with China for the past several years, a conflict in which the two acted against each other to protect their resources and technology. According to the creator of Ethereum, the fight can create a suitable environment for cryptocurrencies to advance and prosper.
"It is definitely true that much of the conflict, even if it is a negative sum for humanity as a whole, is good for cryptocurrencies," he said during the recorded conversation.
During his tenure as president, Donald Trump imposed several tough measures against China. Trump believed that Chinese tech companies acted as Trojan horses for the Chinese government. It once tried to ban WeChat, a popular social messaging app with a current global user base of more than 1 billion people, citing security concerns. The Trump administration also imposed punitive tariffs on China's graphics cards.
However, Buterin believes the Trump administration's approach is flawed. He added that the aggressiveness of the United States towards Chinese tech companies puts other stakeholders at risk.
What's more, the Ethereum creator said he is not convinced that bans and tariffs will protect American citizens from security threats and job losses. In his view, the centralized power of governments undermines all attempts to protect the interests of the country. He claimed that decentralization was a better way to do this.
"And this is where crypto comes in, because through decentralization you can credibly convince people that it is really important to you to protect people."
He gave the classic logical example of three people in a fight. He explained that in a competition where the first person (A) is better than the second (B) who is better than the third (C), the latter inevitably wins. The first two parties are likely to try to get unstuck, leaving the third with an easy path – in this case, cryptocurrencies.
While its logic is conclusive, it does omit some factors that could affect the result. First, the new government may not share the views of the old one. More than three people (actors) could also participate in the competition. These factors could potentially affect the outcome of the situation.