Charlie Shrem sat down with Yahoo Finance recently to discuss his thoughts on the present and future states of cryptocurrency.
The Starting Line
Charlie Shrem, early Bitcoin 00 adopter and founder of BitInstant and Crypto.IQ was interviewed by JP Mangalindan of Yahoo Finance on Sunday. The sit-down took place at the MoneyShow conference in San Francisco last Thursday.
Shrem gave the audience some nuggets of wisdom and advice, while also discussing his thoughts on the current cryptocurrency market and its future trajectory.
The pair began by discussing Shrem’s early days in the dawn of Bitcoin — running the largest bitcoin exchanges at the time in the early 2000’s, followed by a stint in prison after selling Bitcoins to resell on the now-defunct ‘black market’ website, The Silk Road.
After serving two years, Shrem teamed up with Randall Oser to create Crypto.IQ, which offers a membership service that includes access to portfolios, cryptocurrency analysis, reports, and education.
A Phoenix From The Ashes
When asked about his take on the current state of Bitcoin, Shrem took the chance to remind new investors that historically, it hasn’t been all sunny days for the cryptocurrency markets. He stated:
A lot of crypto people aren’t traders, traders know there are bull and bear markets. A lot of crypto people think it’s always bull.
Shrem does not seem discouraged by the current bear market. “It’s during these bear markets,” he said invoking ideas of creative destruction, “it’s when things die, things are born and rebuilt.”
Getting In — Getting Intrigued
With the number of existing cryptocurrencies exploding to over 1,800, many are bound to die out in time. Shrem noted that the cryptocurrency space has become much more competitive due to the large number of different projects. Bear market cycles are necessary to shake out projects that have no real-world value.
The huge proliferation of cryptocurrency projects also allows people more avenues to become a part of the cryptocurrency economy.
Shrem praised projects that are legitimate and genuinely attention-grabbing of new people saying, “It’s getting people in. It’s getting people intrigued.”
He advised those who are just beginning to invest, “Choose an amount that you’d be okay with losing.” he continued, “Invest [that amount] in a basket of crypto and just have fun with it. Just enjoy it and learn.”
Shrem recommended locking up the investment to allow it to mature for five years.
‘Putting My Money On 2019’
Mangalindan asked Shrem how to respond to those concerned about the volatility and price of Bitcoin. Shrem responded optimistically, “It was a crazy move. We went from $1,000 to $20,000. The market has to digest that.”
Shrem and other long-time investors realize that the current bear market is simply following the pattern of experiencing periods with large-percentage gains, and subsequent corrections.
Shrem is still bullish on Bitcoin 00 claiming, “Honestly, I’m a buyer between $5,000 and $6,000. “Shrem was also asked about his thoughts on the recent rejection of Bitcoin Exchange-Traded Funds (ETFs) by the SEC, a topic that has garnered a great deal of media coverage lately. Some investors are claiming that ETFs will make the price skyrocket, others think ETFs will have only a small effect on the market.
“We’re not ready for an ETF.” said Shrem, “The market is too liquid, it’s too manipulatable.” He cited the recent pump of Bitcoin price during maintenance on the BitMEX exchange as an example.
“We only have a first shot at it.” Shrem stated, “We have an ETF, something happens, we get screwed, they shut it down. Do you know how hard it’s going to be to have an ETF again?”
Shrem remains certain that the ETF will happen, stating, “I’m putting my money on 2019.”
Do you agree with Charlie Shrem’s views on the present and future of the cryptocurrency market? Let us know your thoughts in the comments below!
Images courtesy of Bitcoinist archives.