Erik Voorhees: 'Crypto Is Taking Over the World'

Erik Voorhees, the founder and CEO of cryptoasset exchange ShapeShift.io, has said that the crypto market has seen “four or five bubbles” which have resulted in extreme price fluctuations.

Voorhees, a business leadership and political economics graduate from the University of Puget Sound, noted during a recent interview with Bloomberg that “a lot” of the cryptocurrency price movements are cyclical.

He remarked:

People wait until they feel like the bottom is in...and [wait until] they feel like the bear market is over...and then they feel comfortable moving back into crypto. That’s probably the biggest reason [behind the recent crypto market rally.] Often, these things are a confluence of many different individuals making their own decisions.

According to Voorhees, there are only ten to twenty cryptocurrency projects that “have any importance” or relevance. The other cryptoassets, Voorhees said, don’t matter much and they “don’t really move” or affect the market.

Cryptos Increasingly Being Used For Remittance Payments

In response to a question about whether there’s something structural in the crypto market that encourages speculative trading, while also causing bubbles, Voorhees stated:

There have to be bubbles in crypto because [it] is taking over the world. And, it’s not going to advance 5% a month without end. If it did that, then people would start buying it up and frontrunning it, and turning it into a bubble. There’s no way to go from a zero dollar asset to one that’s worth trillions without massive speculation and massive volatility in cyclical bubbles.

Commenting on the different use cases for cryptocurrencies (so far), Voorhees pointed out that decentralized digital assets are increasingly being used in countries impacted by severe political and economic uncertainty and hyperinflation such as Venezuela.

Remittance payments using cryptoassets are also on the rise, the ShapeShift CEO revealed. However, Voorhees acknowledged that cryptocurrencies are still mainly being used to engage in speculative trading.

ShapeShift Required To Perform KYC Checks

When asked to comment on how ShapeShift first began offering convenient cryptocurrency trading services, which did not require ID checks, Voorhees said that it was somewhat similar to how people can convert their Euros to USD at airports, without having to show their passports (although this has changed recently as most major airports do require ID verification).

Voorhees also confirmed that ShapeShift’s crypto trading platform now requires users to comply with standard know-your-customer (KYC) / anti-money laundering (AML) checks. Although Voorhees believes people should not have to provide ID verification documents to engage in financial transactions, he pointed out that regulatory authorities require that exchanges perform KYC checks.

Bitcoin Hashrate Hits New Record as New ASIC Miners Brought Online

Neil Dennis

Bitcoin's hashrate - the computing power dedicated to mining the world's biggest cryptocurrency by market capitalization - hit another record high as thousands of new miners came online in the last few months.

Data from bitcoin mining pool BTC.com showed another milestone level passed. At block height 594,720 , the average hashrate jumped to 85.08 exahashes per second (EH/s), smashing the previous record rate of 77.08 EH/s on September 1.

Mining Difficulty

As ever more powerful mining rigs come online and compete for bitcoin rewards, the hashrate increases as the network's blockchain adjusts its mining difficulty to ensure the time to produce a single block remains the same - around 10 minutes.

On Friday September 13, the difficulty rate also hit a new record high of 11.89 trillion, up from the previous 10.77 trillion as measured on September 1.

Powerful new application-specific integrated circuit (ASIC) miners have an average hash power of about 55 terahashes per second (TH/s). Given that 1 EH/s is equal to 1 million TH/s it can be estimated that since June 14, when the hashrate stood at 53.03, the extra 33 EH/s may be accounted to around 600,000 new ASICs added to the total bitcoin mining pool in those three months.

Just last week, two new Bitmain ASIC models hit the market only to be sold out instantly.

 

Featured Image Credit: Picture Courtesy of Bitmain