We bring to your attention an interview with Andrei Pogorely, a well-known expert in the cryptocurrency market and the founder of iTuber. We thank Andrew for the detailed and informative answers.
How do you see the place of cryptocurrency in the modern economy? Is there a real need and demand for “digital assets” now?
I move away from people's need:
- too expensive payments, i.e. transaction fees,
- too long process of operations
- third parties are involved in the transaction,
- possibility of blocking operations and freezing funds.
In this regard, it is more convenient for people to use cryptocurrency , subject to the smoothness of its work and specific legislative regulation.
These factors will certainly cause demand in the use of cryptocurrency. But so far we have not seen a clear settlement of the interaction of cryptocurrencies with the states of different countries, and in some countries even try to ban cryptocurrencies.
Let's distinguish whether there are digital assets i. means of accumulation and means of multiplication, such as, for example, Bitcoin (this is not a means of payment, but more accumulation), too much volatility prevents Bitcoin from being used purely for standard implementation in e-commerce stores.
And on the other hand, it is the need for peer-to-peer funds, for example, when the same Ripple (XRP) as a replacement for SWIFT payments. Of course, there is a need, it stems from the pain that was listed above, but so far there are no specific regulatory standards from state bodies and this hinders the development of the industry.
Is society and business ready for the adoption of a “new form of money”?
The society has been ready for a long time, this is a normal process, we have moved from barter to gold, from cache to payment by bank cards, and now is the time for cryptocurrency, which can be used from any smartphone, almost anyone in the world can do this at the moment.
But the problem of widespread distribution again rests on the lack of regulation by the state, so that cryptocurrency could be used, quickly, conveniently, without any obstacles and restrictions. The same bitcoin is not suitable for mass adoption, it is more a means of accumulation, like “digital gold”, because its course is very volatile. At this stage, Tether (USDT) is more suitable for widespread use, since its course remains stable throughout its existence.
For the mass adoption of cryptocurrency medium and large businesses need two items:
- Increase profitability or reduce business expenses
- Regulation at the legislative level.
At a smaller level, e-commerce has long been introducing cryptocurrencies, but this is more related to their popularity and the course movement. when around Bitcoin there is a lot of noise and the rate is growing – everyone introduces BTC payment, when many people fall, they remove this possibility.
Accordingly, until there is a crypt with a stable rate and minimal volatility, I do not believe in the mass adoption of cryptocurrency by the business.
Will Bitcoin remain the flagship of the cryptocurrency or the future of the tokens that will be issued by large corporations (Facebook, Google, Telegram)?
I separate here separately, Bitcoin here as an asset, it is too volatile, I do not believe in the possibility of mass acceptance of BTC as a means of payment until its course is so unstable. For example, the same platform Steam refused to accept payments at BTC, because it could not predict the exact budget replenishment.
Accordingly, Bitcoin for me seems more like “digital gold” – a means of accumulation, and not a means for payments.
In terms of payments, there are two directions:
- independent cryptocurrencies, their advantages are that they allow us to get complete anonymity,
- cryptocurrencies of large corporations Facebook, Telegram, Google, which initially have an advantage in mass adoption with proper and convenient implementation.
Both formats will most likely coexist, since they are used for different purposes and tasks.
What are the prospects for cryptocurrency in Russia for 2019 (implementation, regulation, mass adoption)?
From the point of view of regulation of cryptocurrency, the possibilities to control a large flow of new funds are interesting, since the entry and exit to the crypt occurs through exchanges and exchangers, with banking operations and cash withdrawals. The control of these areas will be strengthened, the exchangers and cryptobirds will be the control points first of all.
As for the mass adoption, also will not be for the reasons listed above. Need government regulation and implementation of the business.
Separately, it should be said about the prospects of blockchain technology in the Russian Federation. The technology of decentralized database of baths can greatly simplify and even abolish many processes in the state. But perhaps the current system and the legislators do not want to make these improvements, although for the citizens the advantages of the blockchain would be undeniable – transparency and budget savings.
How do you see the optimal principles of cryptocurrency regulation (at a basic level)?
Being a libertarian, to be honest, I’m not particularly for any means of regulating anything, I’m more for the free market, so that people themselves define their actions and tools in accordance with their effectiveness. In terms of cryptocurrency, it is worthwhile not to tighten the screws and prohibit them, but to allow the circulation of crypting currency, while taxing these transactions with a corresponding tax.
In this case, the users themselves will determine which tool suits them better: Bitcoin, Ether, Tether (USDT), Crypto Rule, or something else. The market itself will leave the most stable instruments and drop all less effective. And the prohibition of something will only create a “black market” and tax losses for the state.
Will the blockchain technology evolve along with the growing popularity of cryptocurrencies or the adoption of the technology itself can occur regardless of the situation on the crypto market?
For me personally, the blockchain technology itself is of greater interest. the similarity of virtual currency as a means of payment existed before, for example Webmoney. The blockchain technology has made such a breakthrough possible through decentralization .
It is through decentralization that it is possible to achieve transparency and openness in many areas (for example, government elections, decisions of various communities, registers of dedvizhimost, etc.), since the human factor (error, bribing, non-objectivity, etc.) is eliminated. great prospects in the long run.
Which top-100 cryptocurrencies in your opinion will show the greatest growth in 2019?
There are certain levels of cryptocurrency differing by the features:
- Cryptocurrency rate which follows Bitcoin (BTC, LTC) – now you can designate it as an index of the cryptocurrency market as a whole. I am sure that Bitcoin volatility will be high – it will rise and fall more than once.
- Cryptocurrencies that provide the infrastructure for creating other cryptocurrencies and tokens (ETH, NEO, EOS, NEM) – the growth of these assets primarily depends on the development of the ecosystem as a whole, as well as the marketing and technical strategy of specific projects.
- Cryptocurrency exchange tokens (BNB, HT) – the exchanges operate with large capitals on the market, which makes it possible to popularize their tokens and even manipulate the market in order to grow them. In particular, BinB from Binance already occupies the 12th line of the Coinmarketcap.
- An independent cryptocurrency that will have its own technology (DASH, MIOTA) – the entire community will manage it, and the voting will take place with the participation of each holder of the masternods .
But the growth of almost all cryptocurrency categories will depend on the general state of affairs in the cryptocurrency market, since total market capitalization is still too small and subject to speculation. Now, many market players are engaged in exactly speculation, but over time the vector will shift precisely to technology, its development and application.
What trends in the crypto industry you personally expect in 2019?
In addition to the development of areas that are on everyone’s ears, it is: artificial intelligence, augmented reality, robotics, electric cars, etc.
There will be a strong tightening of the nuts in the field of ICO with tight regulation by the government (including the SEC). Now the money supply from investors is much higher than the quality ICO, with this ICO scam was already a lot.
Investors will also undergo KYC and verification by providing inquiries from a broker, a bank, etc. Therefore, in the future, not everyone will be able to invest in ICO, which over time will replace STO with projects, they will become much less, but with a higher level of development and quality, the responsibility of project organizers will greatly increase, for them there will be much more mandatory reporting and inspections. All this should have a qualitative effect on the market.
I expect the growth of cryptocurrency in late spring – early summer, in particular, everyone expects the integration of cryptocurrency as an asset to traditional stock markets in the form of ETFs, futures, options, etc. The stock market has a much larger amount of capital that can warm up cryptocurrency assets.
2019 is likely to be the moment when Bitcoin will be financially legal and regulated, which will cause a new leap in hyip and cryptocurrency growth. In terms of mass adoption by society, everything will depend on the convenience of cryptocurrency for the user, including the ability to use them anywhere in the world to pay for any goods and services (acceptance by the business).
For the long term, I am confident that the cryptocurrency will replace the existing banking system, perhaps it will be in some kind of modified form.
Publication date 02.02.2019
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