Bitcoin (BTC) Pioneer Charlie Shrem: ‘I’m Still All in Crypto—This Is My Future’

Siamak Masnavi

In the most recent episode of CNBC Africa's "Crypto Trader", host Ran Neu-Ner, got the chance to interview early Bitcoin entrepreneur Charlie Shrem, and ask for Shrem's views on the cryptocurrency market.

Neu-Ner, who is also a co-founder of crypto-focused asset management firm Onchain Capital, spoke with Shrem at this year's North American Bitcoin Conference, which was held January 16–18 in Miami, Florida.

This article takes a look at some of the highlights of Neu-Ner's interview with Charlie Shrem.

Q: Is this the most serious bear market?

A: "100%. This is the most serious bear market by far because it's when people invested real money and we actually had a crazy price run-up and a lot of people were saying that it would never end. 

Q: Could we just HODL as with the previous bear markets, or is it different this time?

A: "The question that people were always asking in the prevoius bubble was 'Will Bitcoin exist a year from now?'... No-one is asking that question now. It is 'How long will the bear market last?'. So, I think it's different in that there is enough security in the crypto space for it to exist long term, and if you loo at the price action now, you see it's a lot more accumulation happening at a faster price, and people are accumulating back in at lower levels and they want to have their long term cryptoassets."

Q: What about Ethereum, EOS, and these other super computing networks? Will they continue to exist?

A: "A lot of them are gonna die. A lot of them are dying right now. Some of them will exist, some of them won't. They are still very much science experiments, and as the leaders ot these projects go, even Ethereum's Vitalik and Vlad have said 'Ethereum is not money; don't put your life savings into Ethereum', and [they are] constantly warning people not to go fully-vested into these things because sxxx happens and it all comes down to one or two people being able to fix them."

Q: What are you expecting in 2019?

A:  "2019 will see a lot of phoenixes rising from the ashes. You'll see a lot of the projects that were getting built in 2019 start to deliver in 2019. It's a lot of projects that we are not hearing about right now that raised money, they've been under the radar... They've been building, they've been staying quiet, and not wasting [time on] press announcements because those really don't matter right now... These projects are going to have to deliver, and it could either be a fantastic year because these are amazing things, or they could completely flop, and it will be a crappy year."

Q: Are you still all in?

A: "I'm still all in crypto. This is my future. This is my legacy. I don't have an adult life without crypto. I got involved in this space when I was still in college. So I have nothing else."

 

Featured Image Credit: Photo by Steele Rutherford via Unsplash.com

Blockchain-Enabled Chinese Yuan Could Increase Governmental Oversight, Investor Argues

The Chinese government has been closely studying blockchain technology in order to determine whether the immutable distributed ledger can be used to streamline routine business processes.

However, Chinese authorities have expressed concerns regarding the use of cryptocurrencies in financing illicit activities and potentially disrupting the country’s $12 trillion economy by facilitating capital flight.

People’s Bank of China Considering Blockchain-Based Yuan

While China’s government has attempted to restrict transactions involving cryptocurrencies, the People’s Bank of China (PBoC) has reportedly been conducting research to determine the feasibility of launching a blockchain-based Chinese yuan (CNY) since 2014.

This, according to Dovey Wan, a founding partner at Primitive Ventures, a “market cycle agnostic” investment firm which has invested undisclosed amounts into various cryptoasset projects such as ZCash (ZEC) and DFINITY.

Wan, who earned her Masters in Information Systems from Carnegie Mellon University, wrote in a blog post published on CoinDesk on May 17, 2019 that the digital yuan, or Renminbi (RMB), initiative may potentially allow the Chinese government to exercise greater control over the nation’s local and international economy.

M0 Versus M2

As explained by Wan, digital fiat currencies allow financial institutions to more effectively create credit flows which increase M2, the broad money supply. Meanwhile, blockchain-based digital currencies impact a base currency measure, referred to as M0.

Blockchain-enabled digital currencies could potentially allow central banks to “bypass commercial banks” in order to directly control money creation and supply channels. This would structurally centralize the central financial institution’s power and role in formulating monetary policy, Wan argued.

Chinese Government Will Most Likely Use Permissioned Network

According to Wan, the PBoC is looking at various types of network design for a digital, blockchain-powered RMB. She believes that it will most likely be a permissioned network in which the nodes will be managed by major Chinese financial institutions, including the PBoC.

This indicates that transactions involving a digital yuan would only be seen by Chinese banks, and not the nation’s citizens.

Blockchain-Powered Currencies Enable “Better Coordination Paradigm”

One of the main reasons for using blockchain technology, Wan noted, is to take advantage of “a better coordination paradigm” when compared to “traditional currency supply management, which is heavily dependent on bookkeeping,” Wan wrote.

Moreover, Wan thinks blockchain’s immutable nature and private-key cryptography can prohibit users from entering fraudulent transactions and also prevent users from counterfeiting currency notes.

A blockchain-based yuan could also assist the Chinese government in more carefully monitoring the spending history of the nation's residents. This would allow the government to "accurately assess creditworthiness" and detect illegal activities such as money laundering and tax evasion, Wan noted.