The future of cryptocurrency from the view of a bitcoin investor

The future of cryptocurrency from the view of a bitcoin investor

Interviewer: Haginouchi
Interviewee: M.A, AI Engineer

We, TokenNews, participated in the Ethereum Classic Summit held on the 13th and 14th of November 2017. We interviewed M.A to share his opinion about the cryptocurrency industry. M.A is a Singaporean engineer specialized in AI and computer vision technology, and also a cryptocurrency investor. He has been following and trading cryptocurrencies since 2012.

Q.Could you share your opinion on how cryptocurrency has evolved in 2016~2017? And, how will the cryptocurrency industry grow in 2018?

M: When developing an open source project, the most difficult part is how to support it. Specifically, how can you create incentives for people to run the nodes and how to get other people to be involved in the development. The current bitcoin boom is happening because we have figured it out how can it be funded.
However, there is also a potential risk for the future growth. The non-technical people, such as investors who do not understand the whitepaper and the codes, are starting to step into it. This can be dangerous and reckless. If they don’t understand the concept and the value drops, then probably those people will panic and sell it at a low price and behave irrationally. I don’t think such thing is happening yet. However, as ICO projects become mature, there will be an increase in the number of projects failing. That could be when this will happen.

Q. Recently some countries announced regulations on cryptocurrency and ICO, how do you think cryptocurrency industry would change?

M: The USA started to regulate it and it is followed by China and other countries.
For the ICO teams, the logic will be that they will move to countries that are more open to it, like Singapore. I think smart people in any system can figure their way out.
Although we see some effects of regulation, which affects the price, bitcoin is quite robust, it is in terms of regulation.
In the future, when your cryptocurrencies gained its citizenship and people are starting to run away from their own currency, by that time, bitcoin will be mature enough.

So, I think the effect of regulations is quite limited in the long term. Regulation would rather make people move from one country to another country that has a better policy. The advancement of internet and the reduced cost of international movement make people move easier.
For example, Singapore is adopting policies that are attractive to ICO and cryptocurrency developers. Moreover, Singapore persuades developers to come to Singapore to work. The attitude of the government is more encouraging and helpful, like ‘we will discuss with you how can you avoid any problems’, but not just regulating it. Countries that do not have resources like Singapore and Hong Kong focus on human capital, they would be the center of the trend. For such countries, innovation and service sectors are its main growth drivers.

Q. Currently, the main players of ICO investment are the private investors, do you think there are possibilities that the existing financial institutes, such as banks and investment banks and other funds, will join the market?

M: I think it is possible for the ‘big players’ (financial institutes) to join the market. One thing I am concerned is the fairness of opportunity. Since those financial institutes have a large amount of capital, they might have an unfair opportunity for investment. For example, prior to the public release, they might have some opportunities to buy the tokens earlier than the private investors.
If the opportunities are fair, then the big players can have a positive influence on the market as they can bring it to the next stage.

Q. Do you see cryptocurrency as a currency or a financial product?

M: Although some people view cryptocurrency is a financial product, I would say it will eventually be a “currency”, like any other currencies we use in daily life. Because it is a new thing, people speculate and trade them to make profits. However, as Bitcoin becomes more mature and well accepted, it will behave more like a currency.

Thank you very much for participating the interview.