Will Hollywood ever adopt blockchain technology?
The potential integration of cryptocurrency and blockchain technology into the entertainment industry, particularly in addressing longstanding issues like Hollywood accounting, is a topic of discussion among experts in the cryptocurrency field. In the latest episode of the Variety podcast “Strictly Business,” two specialists delve into this subject.
Tarun Chitra, the founder and CEO of Gauntlet, a research and advisory firm, and co-host of the crypto-centric podcast “The Chopping Block,” along with Lee Reiners, a professor at Duke University focusing on financial regulation, explore how the transparency and immutability of blockchain ledgers could revolutionize deals involving numerous stakeholders with incremental profit shares distributed over an extended period.
Chitra, an advocate for decentralized finance, emphasizes the importance of placing trust in the blockchain community rather than traditional financial institutions. He envisions cryptocurrency as a catalyst for a new wave of investment and risk-taking activities independent of Wall Street and other financial intermediaries. On the contrary, Reiners, a skeptic of cryptocurrencies, questions the practicality of alternative financial solutions for the majority of the population.
Chitra highlights the shift in consumer behavior in the U.S., noting the prevalence of “synthetic claims on real dollars” over the years. He draws parallels between the emergence of cryptocurrencies post-2008 financial crisis and the evolution of online communities through social media platforms, signaling a changing landscape in financial interactions. Chitra views decentralized finance as a form of user-generated finance, akin to user-generated content on social networks, enabling individuals to create and manage assets in ways unprecedented in traditional finance.
In a separate discussion, Reiners expresses concerns about the susceptibility of unsophisticated consumers to crypto-related scams. Despite recent approvals by the Securities and Exchange Commission for Bitcoin exchange-traded funds, Reiners believes that the risks associated with cryptocurrencies outweigh the benefits, particularly for average consumers who may fall victim to fraudulent schemes.
As the regulatory landscape grapples with the complexities of cryptocurrency, Reiners anticipates a continuation of existing regulatory frameworks due to congressional challenges. He foresees ongoing risks for average consumers involved in crypto transactions, echoing past experiences of individuals being adversely affected by crypto-related activities.
“Strictly Business” is Variety’s weekly podcast featuring discussions with industry leaders on the dynamics of media and entertainment business. For those interested, new episodes are released every Wednesday and accessible on platforms such as Apple Podcasts, Amazon Music, Spotify, Google Play, SoundCloud, and more.