Silicon Republic on Cryptocurrency
Silicon Republic’s editor John Kennedy asked our CEO Loughlin Nestor on his views on cryptocurrency. The questions and answers are here — and also the link at the bottom of this article to the piece that ran in John’s online publication.
SR: What are your thoughts on the current cryptocurrency craze, do you think it will all end badly with people losing their shirts as skeptics fear?
For me it depends on your risk tolerance for investments, your understanding of what you are investing in and implementation of cryptocurrencies. There are a plethora of altcoins and ICOs to choose from but it is vital from my perspective that companies utilizing tokenization as a funding model need to implement very strong due diligence and good governance.
Yet like all investment of this type m they are speculative. Compared to fiat currencies, cryptocurrencies are far more volatile in the sense that it can fluctuate 10% or more in a day. Compared to fiat currencies with usual 0.1–0.5% fluctuation parameters daily. Cryptocurrencies as a whole is still in its infant stages of being implemented in our daily lives. We can now buy coffee in Dublin and Guinness in Cork using cryptocurrency. As a form of payment, this new model has only started. I do expect cryptocurrencies markets to recover eventually but at this point in time it is almost impossible to say how and when this will happen.
In summary if people are planning to invest in blockchain assets in the coming weeks and months could offer superb entry points however be mindful of technological risk as well as scammers in the ICO markets. Furthermore only invest money you can afford to lose. That’s effectively the mantra for investing and it should be applied to the cryptocurrencies markets.
SR: A recent Symantec report pointed to cryptojacking and illicit coin mining on computers by hackers. What are your thoughts on the information security aspects of cryptocurrencies?
It augmented to nearly 8,000% growth last year. I think there is an urgent and vital need for process security and cyber security implementation protocols, which will require joined up thinking from all the large corporates. Google is no longer accepting extensions from its Chrome Web Store that mine cryptocurrency as it works at protecting users’ from extension cryptojackin. ‘
Its estimated that approximately 90% of all extensions with mining scripts that developers have attempted to upload to Chrome Web Store have failed to comply with their policies. In recent months the threat of cryptocurrency mining malware has been felt globally.
SR: Do you believe there is a future for cryptocurrencies if organisations like the SEC impose regulations?
The wild west atmosphere that was once a hallmark of the cryptocurrency eco-system is beginning to fade. Blocknubie is crying out for regulation, and we hope to be able to play a part in its framing. Regulation is required in cryptocurrency markets . As much as cryptocurrency enthusiasts like to decry the effect of governments on financial instruments, the prices of bitcoin and other cryptocurrencies are influenced by intervention and pronouncements from regulatory agencies. In a nutshell the market might take a bearish trajectory for the short term but as more frameworks are announced the medium to long term effect will have a positive effect on cryptocurrency when there is more definition from tokenizations to advertising for example.
Crypto securities are legal in most developed countries, but the regulation is dependent on the jurisdiction in which the crypto security will be used. Legal status will also depend on the purpose of the activity that’s driving the crypto issuance
SR: Rather than just being negative about cryptocurrencies, they nevertheless prove the power of the blockchain. How do you think cryptocurrencies might evolve and ultimately your thoughts on the promise of blockchain?
Regardless as to whether the banks see cryptocurrency as a new form of payment or not, they can’t continue to ignore the virtual coins as an alternative. European Central Bank has stressed that they are monitoring cryptocurrencies and are evaluating the blockchain technology that comes alongside it. I certainly see greater adoption into mainstream business despite the obstacles. Blockchain has the potential to dominate finance and lending, identity, security and a plethora of other use cases. It will have a footprint in most of the sectors that consumers operate in.
SR: How do you think we should go about separating blockchain as a technology from association solely with cryptocurrencies?
Unsurprisingly, cryptocurrencies, and the technology it is founded upon blockchain, have been tarnished with the same negative connotations in the mainstream consciousness. However, the reality is that blockchain is not dictated by the restrictions of the existing and most well-known Bitcoin or Ethereum networks. While these networks are public and decentralised, blockchain technology can be fully customised to create a blockchain with bespoke features and rules tailored to a variety of services and requirements. Effectively there needs to be a greater understanding from the mainstream media and greater education into the use cases for both and how they complement each other yet are are completely different in application.
Loughlin Nestor, CEO Blocknubie
Read the full article here with multiple contributors ClickHere
