Crypto Veterans Talk about Bitcoin’s Bear Market at San Francisco Blockchain Week
The cryptocurrency industry has changed in just a year. There are many other investors, another feeling on the market, and new prospects for the future. At the San Francisco Blockchain Week 2018, several cryptocurrency veterans talked about virtual currencies and the market.
Clearly, the boom experienced in 2017 shocked everyone. And indeed, the market has substantially dropped from that moment, more than 90% in some cases. For example, Veteran investor and AngelList co-founder Naval Ravikant said that the crypto market was close to having the most important financial institutions investing in the market. But in the end, it did not happen in this way.
During the first two days of the week-long conference, over 800 people were present, just 200 less than those that participated at the ETH San Fransisco weekend hackathon.
Most of the cryptocurrency entrepreneurs are getting prepared for a period of slower growth rates. And indeed, several investors and entrepreneurs are very careful about future investments. Taylor Monahan, MyCrypto wallet CEO, said that he is more cautious about hiring new staff, fundraising and adding support for new virtual currencies.
Monahan asked whether it will be possible for teams that hired over 100 employees to keep giving work to these people.
At the same time, Joseph Weinberg, co-founder of Paycase, a financial services platform, is advising the Organisation for Economic Cooperation and Development about how virtual currencies work and how to regulate them.
About it, he mentioned:
“If we don’t have jurisdictions that will give our ecosystem clarity, then we’re in trouble. It’s about making sure we have a future.”
One of the most valuable projects in the market, Ethereum, is working in order to offer different scaling solutions. Most of the projects that decided to launch Initial Coin Offerings (ICOs) during the last year are based on Ethereum. This has pushed Ethereum to search for new scaling solutions faster than other blockchains such as Bitcoin.
Vlad Zamfir, an important Ehereum developer, said that it will take time for Vitalik to convince everyone about it. Additionally, he mentioned that the current governance model that Ethereum has is not sustainable for the future. He says that the interests of the companies working in the Ethereum ecosystem need to be aligned with the outcomes the community wants, and that’s sometimes difficult to achieve.
Alexander Skidanov, part of Zamfir’s team, said that it is necessary for the community to be able to analyze the network and know that it’s secure. Additionally, he expects it will take years for Ethereum to support consumer applications.
Charlie Lee, Litecoin’s founder, said that Ethereum is moving too fast and it needs more businesses to run nodes as demand increases. This can be translated into a more centralized network that scales faster.
During the blockchain week, another important topic discussed was related to new talent entering the crypto space. In Silicon Valley, there are several talented individuals working on virtual currencies. Moreover, some participants at the hackathon said that they are leaving some corporate jobs in order to jon the blockchain and crypto industry.
Some other celebrities present at the event, such as Michael Arrington, were surprised about the community growth during the bear market that cryptocurrencies are experiencing since the beginning of the year.
In addition to it, Monahan said that the quality is more important than the quantity of the newcomers to the industry. With the bear market, the knowledge of those participating in it has also been enhanced.
On the matter, Monahan commented:
“One of the reasons we’ve been successful with ethereum is we are motionally invested in this community.”