Within finance circles, perhaps there is no more polarising subject than cryptocurrency.
To some, the concept of blockchain is a total waste of time, fit for nothing other than building worthless cryptocurrencies that traders can speculate on. However, the flip side is that increasing amounts of money, resources and intelligent minds are pouring into the space, despite the bear market we currently find ourselves in.
We interviewed Crypto Academy CEO Granit Mustafa to get his thoughts on the continued bear market, the long-term future of crypto, its polarising nature and much more.
Coinjournal (CJ): Do you find that those new to crypto are sometimes intimated by the supposed complexity and technical knowledge required to properly understand blockchain?
Granit Mustafa (GM): Definitely. Even though many leaders of companies have a mind for running businesses and rely on experts for technical knowledge that is specific to the industry, the deep understanding of an unpredictable industry does seem to be a key factor in intimidating potential traders, investors and entrepreneurs.
It can be frightening for institutional and individual participants to try and achieve something in this industry. On the other hand, there are so many people that want a piece of the new and fast-evolving industry that they dive head-first without having all the information.
Nonetheless, while the technicalities and the technology itself is nothing short of complex, the concept behind blockchain and cryptocurrencies subsequently is fairly simple, which I think pushes people to participate anyway.
In a best-case scenario, the engagement in the industry itself provides practical knowledge about the inner workings of blockchain and the dynamics within the industry. However, in worst-case scenarios, the hastiness can be detrimental to the interested party if their diligence is lacking.
CJ: A lot of crypto remains quite polarizing, with some people saying there are too many money-grabbing projects, and others saying it will revolutionise the economy as we know it. Why do you think there is such a wide range of outcomes forecast?
GM: As in any other industry, there are those that fully believe in the potential of novelty and application of technologies or emerging industries, and those who oppose it due to the fear of the unknown.
We know that from financial markets there have always been rug-pulls and ponzi schemes, we know that there have been multiple devastating hacks since the emergence of this digital era, and a number of other criminal activities in each and every industry. This is to say that every revolutionary invention or innovation, or in this case a disruptive technology, is a double-edged sword.
On the contrary, there are those who see the glass as half full and fully believe in the potential of the technology not only to ease the lives of people, but also to combat those very crimes that the non-believers are pointing out incessantly.
The wide range of these anticipations stems from the fact that the technology does have a wide application, and for better or worse, with the benefits of this widespread also come some shortcomings which need to be addressed sooner rather than later.
CJ: Do you think that the bear market we are currently seeing will cause some newcomers to leave following the industry for good?
GM: Absolutely. I’d like to think of bear markets as a driving force for challenging participants. Bull and bear markets represent the fundamental cycle of markets, and it is nothing new. This repetitive cycle has been present since the beginning of the operation of markets, and quite frankly is never going to go away.
The fear in the market at the moment is quite significant, but it is a testing ground for those who believe and make sound investment decisions during this critical time, and those who cannot handle it and choose to focus their attention and funds on something else.
It would stand to reason that unhealthy and unnatural growth in markets would constitute a subsequent crash that is just as abrupt and severe. Although the market is new and volatile, and full of uncertainties, the basic behaviours and concepts apply, although the uncertainty is higher.
Take MicroStrategy for instance. One of the top institutional investors that hold Bitcoin (BTC), despite all expectations, Michael Saylor, the CEO said that the only way that MicroStrategy would liquidate its Bitcoin (BTC) holdings would be if Bitcoin (BTC) dropped down to $3,000, and that they would put other assets as collateral instead of deciding to sell. This is an example of holders in the industry which are not intimidated by a passing cycle.
CJ: You state that you believe cryptocurrency is the future of finance on your website. I’m curious as to what role do you see for Bitcoin in this future?
GM: My team and I completely stand behind the claim that blockchain and cryptocurrencies will most definitely redefine digital finance.
Contrary to popular belief, regulations are highly important in facilitating and accelerating global cryptocurrency adoption, Bitcoin (BTC) included. With growing adoption, Bitcoin (BTC) will substantiate its role as a safe-haven investment and store of value, along with taking the form of a proper digital currency as institutional adoption grows and global payments are facilitated through the flagship cryptocurrency.
Bitcoin (BTC) has the key stance in the market due to its limited supply and right now due to liquidations caused by the bear market, Bitcoin (BTC) is ripe for the taking. The time to buy is now. A few years from now many people will look back at the time when Bitcoin (BTC) was trading at $20,000 just as they look back at a time when they could have owned Bitcoin (BTC) for $2.
CJ: Have you been surprised at the growth of the industry since Crypto Academy was launched in 2016?
GM: I am happy that the industry has grown, but I am not surprised. I have been in the industry long enough to realize its potential for widespread applications. I’m glad that the rest of the world has caught up with the believers of the industry.
On the contrary, I had expected more growth and a better regulatory landscape for facilitating the adoption of blockchain technology and cryptocurrencies, so I am a bit disappointed in that aspect.
However, I expect that Binance and its CEO Changpeng Zhao (CZ) as a key accelerator for adoption will prompt and motivate governments and financial institutions around the world to buckle up and get on board.
Coinjournal (CJ): You post a lot of price predictions on your website. What is the track record for these, and how do you come up with such predictions?
Granit Mustafa (GM): We base our price predictions on the overall market movement, important indexes, and sentiments such as Fear and Greed index, the roadmap of the cryptocurrency, market acceptance, and expert’s opinions to analyze and present the most accurately expected price movement.