Things happen in the world of crypto & blockchain at a very rapid pace. The technology is evolving on one end while on the other, investors are seeing a continuous bear run of the market which has resulted in the loss of a large amount of money. While cryptos are being hailed as the future of money by their proponents, there are certain issues associated with them that are holding them back from achieving this status.
BlockPublisher recently got in touch with the Chief Executive Officer of Aximetria, Alexey Ermakov, as he summed up his insights regarding this market overall. The following Q&A gives one a clear insight into the opinions expressed by Alexey.
- What’s your take on the market situation right now?
Alexey: “When describing a market situation, many people like to characterize the situation with two extreme provisions; on the contrary, I wanted to note that we in Aximetria do not see either a rush or a panic – we see a constant interest in buying and storing crypto-positives. This interest comes from new users, or those who first got acquainted with crypto assets, or who did not have the opportunity to buy them earlier, because of their high prices, now the conditions for mass adoption seem to us very suitable. Those customers who entered at the peak of value – as we are – unfortunately, it’s good that in the case of crypto assets, it’s not so difficult and you can change your strategy at any time, which you don’t do with long-term deposits in banks.”
- What is your opinion on the ETF case?
Alexey: “This is a great tool for institutional clients, which allows you to use cryptoactives for trading, but does not provide those benefits that are incorporated in the cryptocurrency.”
- What do you think 2019 would bring for blockchain and crypto?
Alexey: “Stablecoins, consolidation of projects, the launch of major decisions by institutional investors and the international expansion of projects that until that time had developed only within local markets.”
- Any advice for the new startups who are going through the intense bear market?
Alexey: “First, we need a team with strong programmers, they can be found in Russia, Ukraine and Belarus. Having a development team in these countries, you can not only translate all your wildest ideas into a real product, but also do it quickly and comparatively not expensive.
Secondly, when starting a new project, I advise you to look for regulatory arbitrage opportunities, that is, to use those jurisdictions that provide a simplified regulatory regime for the project, either up to a certain time scale, or within a specific service provided by the project. This will reduce the costs of compliance, which are simply destructive for projects at the initial stage.
Third, make products for the B2B market, as we now see an excess of projects in the B2C market and a shortage of B2B, perhaps your decision will be more attractive for large corporations.”
- What’s the state of the blockchain in the banking industry today?
Alexey: “Blockchain as a technology still has not gained significant distribution in the banking industry. In none of the existing banking processes, blockchain technology has gained recognition or made it impossible to make these
processes more efficient, faster or safer. However, all participants in the banking sector are optimistic about the future options for reconciling this technology and actively continue to pilot/experiment it in a wide variety of applications. At the same time, in the scientific community and among developers, the focus is on increasing the performance of the blockchain technology, increasing the adaptation of the blockchain to the main technological processes and systems.”
Blockchain largely finds its use-cases in the arena of finance as it provides a transparent and trustless system of operation. Projects like Ripple are there which target this niche of operations. The fabric of transparency that is provided by blockchain can surely help revamp workflows of the global banking system. At the moment, the adoption of blockchain in the banking sector is on the lower side. But in the future, it is expected that blockchain will become ‘the technology’ in the banking arena. Developments in this tech area are sky-rocketing, it will be interesting to see how things pan out for this tech and the crypto world as we move forward.
Edited On 12:35 PM PKT 2/8/2019