Unlike what we keep hearing in the media, Bitcoin has very little to do with cryptography, and a lot more to do with simple economics. At Lokad, we have pretty much the same economical perspective on supply chain, something that we call the Quantitative Supply Chain.
In this episode of LokadTV, we are lucky enough to be joined by Amaury Séchet, arguably one of the most famous Bitcoin experts and the lead developer at Bitcoin ABC, to discuss cartels and how they can occur in both Bitcoin and supply chains.
Economic cartels are a type of market where participants not only compete but also cooperate. They are surprisingly common in a lot of business verticals, such as telecommunications and aerospace. We look into the properties of cartels and how they can affect Bitcoins.
We discuss what happens when they break down and investigate the difference between cooperation and collusion. Cartel is often a heavily loaded word, providing a bad image, but this is not always the case and they can actually bring about various benefits.
To wrap things up, we try to understand how competition can be created and finally discuss whether we can expect cartel-like tendencies in the near future of both supply chains and Bitcoins.
00:50 Can you define what cartels are and how they are related to bitcoins?
02:15 I thought that the whole point of Bitcoin was that it gave complete freedom, so why are we talking about bitcoins and cartels in the same breath?
04:10 Are there cartels in the supply chain as well?
07:58 Have you got any more properties of a cartel that you can explain to us?
10:26 Do you have any thoughts on how this trust can be created?
15:02 What is this incentive?
16:34 Do you have any example in the supply chain industry where this split happened?
19:32 When does this tight cooperation stop becoming collusion?
26:24 Is it not a really funny concept to engineer instability?
28:19 What about the negatives of tight cooperation?
31:27 What do you mean by betrayal of a cartel and what is the reaction of the cartel?
32:51 How do you see cartels affecting the future of supply chains in reality?
35:24 Is Bitcoin going to have the global impact that we are all predicting?