How The Death Of Wall Street Will Unfold
Aaron Gentzler: Hello and welcome to our urgent briefing. I’m publisher Aaron Gentzler. With me today is chief technology expert Ray Blanco. How are you, Ray?
Ray Blanco: Doing great. How are you?
Aaron Gentzler: Great. Today we’re talking about the stockchain and why it could finally allow retail investors to win the battle against Wall Street.
When we say stockchain, what we’re talking about is new technology taking power away from Wall Street and giving it to average investors.
What we’re on the verge of here is a new way to trade, a new way for everyone to access markets.
To kick things off, can you talk a little bit about why this stockchain breakthrough is so important?
Ray Blanco: Sure. Stockchain enables you and I to transact with a high level of trust even though we don’t know each other, without a middleman. What’s Wall Street’s business? They’re middlemen. Stockchain is a major threat to that model because you could set up an entire ecosystem where you cut Wall Street out.
Aaron Gentzler: Folks are calling this the greatest financial revolution in history. How does a trade actually take place, and why does this new technology mean such incredible things for everyday retail investors like you and me?
Ray Blanco: Well, for one thing when you buy shares in something, the trade does not clear for days. That creates opportunity for all kinds of shenanigans like naked short-selling and the equity’s lending market, which is dominated by Wall Street companies.
With stockchain solutions the settlement is instant. Not only do you get rid of the naked short-selling that is currently rampant, you also get an instant settlement on your trade. It’s a much more efficient system, and it’s going to make fraud and manipulation a lot more difficult.
Aaron Gentzler: One of the questions we also hear kicked around is if this technology is so revolutionary, isn’t Wall Street just going to buy it all up for themselves?
Ray Blanco: Well, they are trying to co-op it, and I would not be surprised if they implement some version of it. It’s useful for them internally, but retrofitting their systems completely would be difficult and very costly. Some Wall Street companies may ultimately choose to forgo it.
Aaron Gentzler: Ok, another question. What does transacting stock purchases and sales look like when the stockchain becomes fully widespread?
Ray Blanco: Well, it’s going to be fast and cheap. It’s going to be better for retail investors. That $7 commission per trade, or whatever it is with your broker, gets expensive. What stockchain could do is radically lower the cost of trading and make it faster too.
Aaron Gentzler: Final question. As the stockchain revolution becomes more and more widespread, is it possible that it goes away very quickly, by getting leapfrogged by another technology? Is there something else right behind this that could challenge this or make it go away quickly?
Ray Blanco: Something better? Well, there’s stuff out there. It’s all very interesting. I don’t know if there’s anything out there that could leapfrog immediately. Stockchain is not going away anytime soon.
Aaron Gentzler: Ray, great update. Thank you so much for your time.
Ray Blanco: It’s been a pleasure.
For Technology Profits Daily,
Managing Editor, Technology Profits Daily