Bitcoin Brain Dump by Crypto Legend Charlie Shrem: Present and Future Insights
Charlie Shrem’s Thoughts on Bitcoin – Its Present and Its Future
Recently, Yahoo Finance interviewed Charlie Shrem, one of the world’s pioneering adopters of Bitcoin, the first cryptocurrency. The interview, conducted on the MoneyShow conference held in San Francisco, sought to know Charlie’s thought on the current state of the crypto space, as well as its future. Shrem also shared his knowledge and issued advice to prospective cryptocurrency investors.
The conversation began on a high note, discussing the first days of Bitcoin. Back then, Shrem was convicted and jailed for two years for selling Bitcoins on ‘The Silk Road,’ an infamous black market website. After his jail term, Charlie partnered Randall Oser to establish Crypto.IQ, a platform that offers crypto advisory, consultancy, and educational services to investors.
Regarding the present state of Bitcoin, Charlie acknowledge that digital currencies are hugely volatile, hence their performance levels may fluctuate repeatedly. Precisely, he mentioned that while traders are aware that every investment has bear and bull markets, most investors in the cryptocurrency industry belief that the markets must always be bullish. Charlie further expressed optimism that Bitcoin will overcome the ongoing bearish market, citing the concept of creative destruction.
Out of the almost 2,000 virtual currencies that are currently in existence, it is obvious that only a few will survive. To this end, Shrem noted that the proliferation of several cryptocurrency tokens has enhanced the competitiveness of the crypto space. Therefore, bear market cycles are necessary to weed out projects that are not applicable in real-life scenarios.
Additionally, Shrem said that the increasing number of digital currencies presents more opportunities for individuals who want to invest in virtual assets. Concerning this, Charlie heaped praise on startups that are legitimate and have use cases in the real world. He also advised first-time crypto investors to stake an amount that they can afford to lose, since this type of investments are highly unpredictable. As per Charlie, the optimal period for the maturity of crypto investment is five years.
When asked about the concerns around Bitcoin’s volatility, Shrem answered that it is normal, alluding to last year’s meteoric surge that saw the price of BTC reach the $20,000 mark. Usually, bear markets follow successful periods with large percentage gains. On the rejection of Bitcoin Exchange-Traded Funds (ETFs) by the SEC, Shrem said that the market has excessive liquidity and is also manipulatable, making it inappropriate to introduce ETFs. However, Charlie is confident that Bitcoin ETFS will become available next year.