DAA Manager Insights: Cain Ransbottyn
There is an old investment saying that goes perfectly with the theme of Easter and the current crypto crash: Don’t put all your eggs in one basket. Of course, going against the crowd is always hard, which is why these insights from our DAA manager DAA Manager Cain Ransbottyn of TRADE might give you a good reason to explore the world beyond Bitcoin.
You believe there is another way to live the #cryptolife. What does that mean?
Most everyone that believes in crypto believes in “Bitcoin.” We haven’t believed in Bitcoin as a currency for a long time; in fact, we think Bitcoin is for losers!
But we do believe in blockchain technology — or, rather, crypto technology.
Blockchain will be a big part of the future economy. We’d like to set ourselves apart not by jumping on the bandwagon, but by minimizing our stake in the “fool’s gold” otherwise known as Bitcoin.
Together, our team has analyzed alternative coins with significant potential to form our investment strategy. Lamborghinis won’t be bought and sold with bitcoin, but with its offspring: the so-called “altcoins.” This is where you get to separate the men from the boys. People think I’m arrogant; maybe they are right… ;-)
As a Belgian, are you satisfied with the development of crypto in your country? Are people aware of crypto/blockchain’s potential and meaning?
Not really. Even people who understand cryptocurrency (particularly BTC) through the press and TV are still skeptical. The media has painted an ugly picture of crypto (especially BTC), which has created unnecessary fear — and plenty of incompetence. Traditional financial advisers claim knowledge, but their experience comes from old-school traditional foreign exchanges.
Our goal is to make stepping into cryptocurrency easy through our website, where we explain from A to Z how to go down the crypto path correctly. Through our website, trade.be, we offer valuable information on topics such as new, emerging ICOs, information about existing coins, news from the crypto world, and explanations about cryptocurrency in general in understandable, everyday human language.
At trade.be, we disprove the fear, uncertainty, and doubt (FUD) created here in Belgium to help people understand the true possibilities crypto offers. Companies are aware of the potential of blockchain technology, but in Belgium, it’s still a fluffy concept, since the traditional banking system is so firmly entrenched. The government is also not fully aware of how crypto investment actually drives technology forward and stimulates innovative ideas.
How do you see the correction that started this past January?
Positively. In 2017, the market experienced exponential growth. At the beginning of 2018, a healthy correction occurred as a counter-reaction to FUD, which resulted in a snowball effect and a panic sell. The market has since stabilized somewhat. The overall cryptocurrency market cap is still more than ten times greater than it was a year ago.
Five reasons we think 2018 will be a good year:
- A huge correction has already taken place.
Cryptocurrencies (usually bitcoin) grow in bubbles, which means big corrections happen from time to time; the longer we go without a correction, the more nervous the market becomes, because people expect a correction soon.
The recent correction was one of the largest in history, meaning people can remain optimistic for longer.
2. Companies are entering the ICO market.
It takes a long time to prepare a good ICO, given the planning and preparation required. Since ICOs became mainstream last year, many existing and larger companies laid the groundwork over the past couple of months for new initial coin offerings. This could mean that more large companies will offer new ICOs this year; we already have Telegram and Kodak, but this is only the beginning. These ICOs should channel more money into the cryptocurrency market.
3. All ICOs should start with existing uses.
According to the roadmap, many ICOs running in 2017 are expected to deliver on the commitments they made in 2018. This means that we should have working platforms and projects that make use of cryptocurrencies. Companies that make promises have to make plenty of FUD disappear. Most people currently see ICOs as scams, but if the projects actually offer working platforms, the picture should change. As a result, skeptics could invest more money.
4. Rules may be introduced.
Although crypto is always about free markets and decentralization, scammers will always try to profit from others (examples include DavorCoin and Bitconnect). Customer protection rules are beneficial to cryptocurrencies because they involve more people. Governments also need to clarify tax legislation and make it easier for people to pay taxes on cryptocurrencies. Governments will try to become beneficiaries by changing crypto legislation to serve investors by reducing taxes.
5. Crypto should become more user-friendly.
Cryptocurrencies are still difficult to buy, use, and sell. Without making these things easier, it will be difficult to encourage users with a lower level of technical skills. We need more services, such as Coinbase, Mistertango, Revolut, and Robinhood, as well as apps such as Bread and Ethos. More shops need to accept crypto; crypto debit cards should also be accepted in shops that handle normal bank cards. One of the biggest obstacles at the moment is convincing people that crypto is viable and not a scam. Making crypto more user-friendly and readily available will help.
You state that BTC has not been proven to be a long-term, highly profitable investment. Please elaborate.
BTC is slow and useless, especially now, because Lightning Network has not been implemented. If there are many requests to send the currency, wait times increase. Not only is BTC slow, but transaction costs are also quite high. This is especially noticeable when a lot of transactions have to be completed on the blockchain. As we said, “Bitcoin is for losers.” :-)
BTC still follows a “proof-of-work” protocol. As the world pays increasing attention to saving energy, proof-of-work is known for having a high rate of energy consumption. This needs to be addressed in the future, otherwise currencies that continue to use this technology will die out automatically. The need for faster transactions, lower transaction costs, and more energy-efficient techniques remains. We have no doubt that these problems will be tackled systematically and that cryptocurrency still has a very bright future ahead of it. We believe that bitcoin will remain the market leader because it is the original crypto coin, making it the market reserve currency through which all other alts are partially connected. But if you invest more in altcoins, you have a greater chance of increased profit than if you only have bitcoin in your portfolio.
Bitcoin has limited usability, but it is the other technologies that give it value:
- Using cards such as TenX, Monaco, Revolut, TokenCard, and Xapo, among others, allows people to make purchases with bitcoin.
- Bitcoin ATMs and services such as Coinbase, Kraken, and Bitstamp enable people to cash out bitcoin quite easily.
- Bitcoin has a market value that can be exchanged for other crypto coins with real use.
- In many countries with a useless currency (such as Zimbabwe or Venezuela), people prefer to store bitcoin because it is more secure than fiat.
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