Within financial circles, there is perhaps no more polarizing topic than cryptocurrency.
For some, the concept of blockchain is a total waste of time, suited to nothing but building worthless cryptocurrencies on which traders can speculate. The downside, however, is that more and more money, resources and intelligent minds are pouring into space, despite the bear market we are currently in.
We interviewed Crypto Academy CEO Granit Mustafa to get his take on the ongoing bear market, the long-term future of crypto, its polarizing nature, and much more.
Coin journal (CJ): Do you find that those new to crypto are sometimes suggested by the supposed complexity and technical knowledge required to properly understand blockchain?
Granite Mustafa (GM): Surely. While many business leaders have a mind for running businesses and rely on experts for industry-specific technical knowledge, the deep understanding of an unpredictable industry appears to be a key factor in intimidating potential traders, investors, and entrepreneurs.
It can be scary for institutional and individual participants to try to achieve something in this industry. On the other hand, there are so many people who want a piece of the new and rapidly evolving industry that they go straight for it without having all the information.
Nevertheless, while the technicalities and the technology itself are downright complex, the concept behind blockchain and cryptocurrencies is then quite simple, which I think is what drives people to participate anyway.
At best, the involvement in the industry itself provides practical knowledge about the inner workings of blockchain and the dynamics within the industry. In the worst case, however, the haste can be detrimental to the stakeholder if their due diligence is lacking.
CJ: Much crypto remains quite polarizing, with some people saying there are too many money-grabbing projects, and others saying it will revolutionize the economy as we know it. Why do you think such a wide range of outcomes are predicted?
GM: As in any other industry, there are those who fully believe in the potential of novelty and application of technologies or emerging industries, and those who resist them because of the fear of the unknown.
We know that in the financial markets there have always been backbones and ponzi schemes, we know that there have been multiple devastating hacks since the dawn of this digital age and a number of other criminal activity in every industry. That is, any revolutionary invention or innovation, or in this case a disruptive technology, is a double-edged sword.
On the contrary, there are those who see the glass as half full and fully believe in the potential of the technology, not only to make people’s lives easier, but also to combat those same crimes that the non-believers incessantly point out.
The wide range of these anticipations stems from the fact that the technology has a wide application, and for better or for worse, with the benefits of this widespread, also come some shortcomings that need to be addressed sooner rather than later.
CJ: Do you think the bear market we are currently seeing will cause some new entrants to follow the industry for good?
GM: Absolute. I would like to see bear markets as a driving force for challenging participants. Bull and bear markets represent the fundamental cycle of markets, and it is nothing new. This repeating cycle has been present since the beginning of the operation of markets and frankly will never go away.
The fear in the market right now is quite high, but it is a testing ground for those who believe and make good investment decisions in this critical time, and those who cannot handle it and choose to focus their attention and money elsewhere.
It is obvious that unhealthy and unnatural growth of markets would mean an equally abrupt and severe crash. Although the market is new and volatile and full of uncertainties, the basic behaviors and concepts apply, although the uncertainty is greater.
Take MicroStrategy for example. One of the major institutional investors who owns Bitcoin (BTC) despite all odds, Michael Saylor, the CEO, said the only way MicroStrategy would liquidate its Bitcoin (BTC) holding would be if Bitcoin (BTC) fell to $3,000, and that they would pledge other assets as collateral instead of deciding to sell. This is an example of holders in the industry not being intimidated by a passing cycle.
CJ: You state on your website that you believe that cryptocurrency is the future of finance. I’m curious what role you see for Bitcoin in this future?
GM: My team and I fully support the claim that blockchain and cryptocurrencies will definitely redefine digital finance.
Contrary to popular belief, regulation is instrumental in facilitating and accelerating the global adoption of cryptocurrency, including Bitcoin (BTC). With increasing adoption, Bitcoin (BTC) will live up to its role as a safe haven investment and store of value along with taking the form of a true digital currency as institutional adoption grows and global payments are facilitated through the flagship cryptocurrency.
Bitcoin (BTC) holds the prime position in the market due to its limited supply and right now due to liquidations caused by the bear market, Bitcoin (BTC) is ripe for the taking. The time to buy is now. In a few years, many people will look back on the time when Bitcoin (BTC) traded for $20,000, just as they look back on a time when they could have owned Bitcoin (BTC) for $2.
CJ: Have you been surprised by the growth of the industry since then? Crypto Academy was launched in 2016?
GM: I’m glad the industry has grown, but I’m not surprised. I’ve been in the industry long enough to realize the potential for widespread applications. I’m glad the rest of the world has caught up with the industry’s believers.
Rather, I expected more growth and a better regulatory landscape to facilitate the adoption of blockchain technology and cryptocurrencies, so I’m a little disappointed in that aspect.
However, I expect that Binance and its CEO Changpeng Zhao (CZ) as a key accelerator for adoption will drive and motivate governments and financial institutions around the world to get involved and get involved.
Coin journal (CJ): You place a lot of price predictions on your website. What is the track record of this and how do you arrive at such predictions?
Granite Mustafa (GM): We base our price predictions on the general market movement, major indices and sentiments such as the Fear and Greed index, the cryptocurrency roadmap, market acceptance and the opinions of experts to analyze and present the most accurately expected price movement.