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Coin Rivet: how was 2018 for Coinsource?
AS: Coinsource doubled our business in a year when Bitcoin rose from $ 18,000 to less than $ 4000. In the same year, we received the New York Virtual Currency License, making us the only BTM operator to receive the license and the only recipient without risk capital or institutional.
We have also successfully implemented our proprietary operating system. There is no doubt that the decline in the price and volume of Bitcoin transactions has prevented us from doing more, but we have built this company from five to ten years, and three years after the start of the operations, we are on track.
Coin Rivet: the number of global Bitcoin ATMs growing every day. But will it be just a niche thing? What needs to be done to break into the mainstream?
AS: Bitcoin ATMs provide convenient access to digital currency. Our customers can buy Bitcoins in cash or sell Bitcoins in cash. Not only can they buy a bit of $ 5 Bitcoin, but they will also receive their Bitcoin immediately, without having to wait days or weeks to complete the transactions. Users do not need a bank account and do not need to send stacks of documents to the international exchange of cryptocurrencies.
In order for the BTM industry to become a mainstream product, the industry must overcome the stage of a group of niche people using Bitcoin. When Bitcoin is widely adopted by the general public, when individuals want and need convenient access, the BTM industry will become mainstream.
This will happen at all levels of our community: ten-year-olds will want $ 5 of Bitcoin for their online games; teenagers will want $ 20 of Bitcoin to spend online; college kids will pay for restaurant tabs in Bitcoin; adults will use it for international purchases directly from the craftsman, from the farmer, from the weaver or from the miner. Bitcoin makes sense for so many types of transactions for so many types of people.
We see many signs that widespread adoption is coming: the daily growth of Bitcoin ATMs, the growth of individual digital portfolios, the growth of companies (and governments) that accept Bitcoin as payment.
It will take time, and we will have many logistical challenges and public relations challenges. But since people find that transactions can be cheaper, faster and safer than using cash and credit cards, the adoption curve will continue to rise.
"If you bought Bitcoin between October 2017 and October 2018 and you lost, you lost a lot of money Investors who bought Bitcoin in the previous nine years, including until June or July 2017, have largely outperformed every other asset class"
Rivet of coins: You say that your expansion demonstrates the continued interest in Bitcoin regardless of the current market fluctuations, but there are many high-profile encryption critics who claim that the coin is a broken flush, a solution to a problem that does not exists etc. How do you respond to them?
AS: The criticism that Bitcoin is a solution without problems is a petty prospect. Traditional currencies have true imperfections. Central banks manipulate the currencies of their countries. If you are not aligned with that country's national interests, this is a problem.
More than 20% of American families are without coverage or underbanked. This is a problem. The wire transmission costs for small quantities can be more than 30% of the total amount of wired money. This is a problem. We can no longer commit ourselves to one or five cents transactions in the United States, which nullify entire business models. This is a problem North Korea has forged the currency of the United States for decades. This is a problem
An individual almost anywhere in the world can communicate with another individual anywhere in the world, but a small percentage can engage in financial transactions – directly or indirectly. Some may not see it as a problem, but it is certainly a missed opportunity, especially for the most vulnerable people on our planet.
Digital currencies also have real problems, and it's hard to deny that huge amounts of hype have come with enthusiasm for new technologies and the ability to tackle some of the failures of traditional currencies. The interesting question is, can we improve our current situation? Can we do it better? A lot of smart people have real and interesting proposals for digital currencies to improve the shortcomings of traditional currencies.
History has some interesting guidance. The coins issued by sovereigns took more than a thousand years to obtain widespread acceptance. Paper currency, checks and credit cards take decades to be adopted by US consumers. By historical standards, it is still premature to judge the probability of Bitcoin's death.
Coin Rivet: The UK Treasury Committee recently labeled Bitcoin and other cryptocurrencies as the "Wild West Industry" and required regulations to protect investors. What is your opinion about regulation in this space?
AS: There are two things to know about the FinTech regulation: regulation is necessary and is coming. The FinTech community is very enthusiastic about this rapidly expanding new industry that can upset many existing practices and activities, but Bitcoin will never interrupt anything if it is not widely used.
Because people are increasingly using Bitcoins, they must comply with existing laws and regulations. Some of these regulations existed before Bitcoin, such as US securities laws, but others will need to be created from scratch, such as the New York Virtual Currency License. Like any regulation that has ever been adopted, some will consider the government's burdensome and exaggerated requirements.
Companies that succeed will be companies that navigate and successfully comply with regulations. Companies that ignore regulations will be pursued and companies that avoid markets due to regulations simply lose that market share.
"The criticism that Bitcoin is a problem-free solution is a petty prospect.Traditional currencies have real imperfections.The central banks manipulate the currencies of their countries.If you are not aligned with the national interests of that country, this is a problem"
Coin Rivet: The reference to the regulation apart, how do you see the current status of the cryptocurrency space? Has the bubble exploded?
AS: I draw a difference between speculation and adoption. The speculative bubble certainly explodes, and everyone guesses where the floor will be established. But adoption has been constant and continues to grow. Two years ago, almost all the major media on Bitcoin started with a reference to criminals. Today the dominant themes are speculation and volatility, but criminal activity is not the main association.
The adoption curve continues to slowly gain momentum. Governments around the world today accept the digital currency for payments. The most prestigious investment banks are exploring cryptographic strategies. The Fortune 500 companies accept Bitcoin and, more importantly, the fastest growing companies accept Bitcoin. Bitcoin speaks of kindness in Davos, Switzerland, Wall Street and Pennsylvania Avenue. People measuring the current state of cryptographic space should focus on the adoption curve, not on the price speculation curve.
A digression on the speculative bubble that explodes … If you bought Bitcoin between October 2017 and October 2018 and you lost, you lost a lot of money. Investors who have purchased Bitcoin in the previous nine years, including until June or July 2017, have largely outperformed every other asset class.
Rivet of coins: where would you like Coinsource to be in 12 months?
AS: Coinsource expects to continue expanding into new geographic markets and new lines of business. By the end of the year 2019, we will probably be in most, if not all, 50 states, D.C. and Puerto Rico. We will also enter the international markets in 2019.
Some of the most interesting opportunities are new lines of business. We will buy and sell many new digital currencies in addition to Bitcoin. We will work with other digital money companies to offer other financial services and we have other projects on the board that we are looking at. We are very optimistic about 2019.
