Marco Streng, Co-founder of Genesis Mining, the largest cloud mining company in the world, and Dr Kristian Haehndel, CEO of DQR, have been featured on the cover of DELTA Mag’s inaugural issue. They reveal the story of a unique partnership.
Marco Streng, you are the co-founder of the world’s largest cloud mining company. Can you tell us more about the origins of Genesis Mining and its current state?
Marco: It all started as an experiment with some friends of mine really. Back in 2011, when we realized the incredible opportunities behind cryptocurrency mining, we initially planned to mine for ourselves on a large scale. But as more and more of our friends were asking to take part in the venture, we chose to share this opportunity with others, and that’s how the business model of Genesis Mining emerged.
After 6 years, we’ve now become the largest Blockchain infrastructure company with more than 2 million customers in the cloud. Genesis Mining customers can benefit from significant economies of scale, operational efficiency, and other advantages gained from our experience.
In a sense, we are like the hub for hash power, or mining capacity, and we make it possible for anybody around the world, without any knowledge, resources or infrastructure, to mine as efficiently as a large-scale operation. By distributing access to mining power at a global scale, and competing with large-scale private mining operators, we are effectively encouraging decentralization.
You are also a Co-founder of DQR, what was the idea behind this new company?
Marco: Because Genesis Mining was created to allow anyone to acquire cryptocurrency through mining, the next step was naturally to provide platforms that could make use of cryptocurrency, such as buying and trading coins. DQR was therefore launched to specifically do this and with the aim to empower people through blockchain. We believe that it is only by making blockchain technology and cryptocurrencies more accessible that we will reach mass adoption.
Dr Kristian Haehndel, in your opinion how do these companies complement each other?
Kristian: Genesis brings us an enormous amount of experience in the space along with the stability of maintaining the underlying protocols and mining. In return, we provide the opportunity for people to engage outside of just cryptocurrency mining.
Together, we cover the full spectrum of how to access cryptocurrencies and how to engage with them.
Do you both feel you have a mission in particular?
Kristian: When I first started buying bitcoin from Marco while he was at University, we would often meet up and discuss about cryptocurrencies, the philosophy, the technology, what it could mean for the world, and this inspired me in many ways. I knew back then that if I were to start something in this space, I would always honor those who inspired me. Only later did we get back together and decided to collaborate on the foundations of a new financial system, to remove inefficiencies and to empower people that have been excluded until now. We have been supporting each other from the beginning and it’s a powerful relationship.
Marco: We at Genesis, genuinely believe that blockchain technology will make the world more transparent, that it will reduce boundaries and manipulation, and those have been fundamental issues in the history of mankind. Everyone should have equal rights to participate in financial markets, but many people still lack financial literacy and control over their savings. That is precisely one of the many promises blockchain technology can fulfill and one that we are truly committed to.
What is your opinion of the current state of the cryptocurrency market?
Marco: I personally can’t speak for all cryptocurrencies, and I’m sure a lot of them are questionable. But there are some cryptocurrencies that I’m very sure will have validity and that truly have fundamental value, for those I’m a long-term believer. As adoption increases, the value of cryptocurrencies and a total market cap will naturally increase. In my opinion, it is important to realize that even though many people around the world have heard about cryptocurrencies, the total market capitalization for cryptocurrencies is still relatively small, even when compared to gold, so the potential is still incredibly big and it can go much higher than the bands we are seeing now. Regarding blockchain technology, I think there is a very clear future. It is not a question of whether it could have some benefits, it is a fact; and we should get prepared to see a lot of innovations coming soon in all kinds of sectors and industries.
Kristian: Just on a global scale, the potential is enormous, because if bitcoin, ethereum and the likes, truly are worldwide currencies as everyone seem to suggest, then their volumes should reflect those of global currencies, but at present, they are still very far from such levels. If companies like DQR are able to minimize the current drawbacks and market inefficiencies, for instance by creating products like indices, futures or options, then I believe that we will see a degree of stability that will strengthen the path forward.
What do you feel are the biggest hurdles faced by the industry and in what ways are DQR and Genesis Mining helping to solve them?
Marco: I think the infrastructure is still limited, and access to cryptocurrencies is not so easily available. Now, our companies are working on making it easier for everyone but we still need to see much higher levels of convenience in the whole crypto space before we get mass user adoption.
Kristian: If you want to attract institutions or large businesses, you need to give them the ability to neutralize the volatility and to visualize price fluctuations, you need instruments like I already mentioned that can guarantee more stability in the market. Stability promotes business adoption; business adoption promotes consumer awareness and consumer awareness drives the demand for more products and services. What DQR and Genesis Mining are doing is trying to strengthen the foundational pillars of the industry to provide a much-needed stability.
Which big trends do you see developing for the industry? How will it evolve in the coming years?
Marco: On some aspects, it is very clear that it will get more sophisticated. Cryptocurrency exchanges will get more features, more stability, and more functionalities. Markets will get more mature and more efficient from the increasing adoption. At the infrastructure level, I think that it will become more convenient and more accessible over time. We could all be very surprised of what is yet to come at the application level as well, because there is so much left to understand and discover. It is similar to the early years of internet, no one ever dreamed of how vast it would become.
Finally, what led you to establish yourselves in Malta?
Marco: I think that Malta has done very progressive moves towards offering a regulated environment ahead of many other countries, and even developing this agenda further with high priority to give blockchain companies and start-ups, a more certain and stable environment in which to operate.
I believe this is something that a large number of governments around the world are working towards, and it will emerge over time on a global level, but countries like Malta that offer it first and that are the most progressive obviously have a great advantage. From this perspective, choosing Malta as our base was an obvious decision.
Kristian: What I find impressive is where Malta stands today in the 21st Century. Despite being the smallest country in the European Union, Malta has taken a strong stand in terms of cryptocurrency and is on the frontlines of embracing the crucial innovation of blockchain technology, being willing to make a change in the world, and supporting the well-being of people on all levels. The alignment between DQR and Malta’s policy, their common vision and their unique set of people, led us to build the company here.
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About Marco Streng
Being a young prodigy in mathematics, Marco Streng discovered Bitcoin while studying emerging and self-organising networks in 2011. He became involved in the Blockchain and cryptocurrency community during its earliest days. He is the CEO and Co-Founder of Genesis Mining. Genesis Mining is the world’s largest multicurrency mining and Blockchain infrastructure company and acts as a key driver and advocate for the whole ecosystem.
About Dr Kristian Haehndel
As an early bitcoin enthusiast, Dr Haehndel was driven by two essential ideas when he founded DQR. His motivation was the knowledge that blockchain was a revolutionary technology and that it could be a means of building a more inclusive economy. His expertise spans a range of sectors, from mechanical engineering to altcoin and bitcoin mining and trading. He is an honours graduate of the Royal Melbourne Institute of Technology in Mechanical Engineering.
