Holger Kuhlmann: Cryptocurrency exchanges may also go bankrupt

Asreertebat – Holger Kuhlmann is a Blockchain Expert, Crypto Investor and CEO of the Blockchain Company Matrix chain OÜ. He believes that The crypto industry is an attractive and lucrative way to make money. Every day, new useless projects sprout from the ground that have no intrinsic value. Only the management board of the new cryptocurrencies wins here. I mean, why do we need over 19,000 cryptocurrencies if few of them have any real application?
We had an interview with him about the future of cryptocurrencies.

-How do you see the prospect of crypto currencies in the field of investment?

In the long term, there is a great opportunity for investors, provided that investors pay attention to some important parameters and only bet on fundamental cryptocurrencies that have real application and solve problems. Bitcoin will always be considered a “store of value”, regardless of market capitalisation. We are still at the beginning of this industry, which is now undergoing a major shakeout.

-How can cryptocurrencies affect the economies of countries?

Cryptocurrencies are only suitable to a limited extent as currencies for individual states. The example of El Salvador now shows the effects of the strong volatility. El Salvador is now threatened with national bankruptcy because it entered Bitcoin at the wrong time. If El Salvador had already introduced Bitcoin as a means of payment in March 2020, you would be a big crisis winner. In the long run, cryptocurrencies can make poorer countries with a weak financial industry more independent and offer more opportunities for prosperity to citizens who previously did not even have a bank account and could not participate in the financial industry. If the IMF did not sanction states, many more states would rely on Bitcoin.

-Why do you think the variety of cryptocurrencies is so great?

The crypto industry is an attractive and lucrative way to make money. Every day, new useless projects sprout from the ground that have no intrinsic value. Only the management board of the new cryptocurrencies wins here. I mean, why do we need over 19,000 cryptocurrencies if few of them have any real application?

-Why are some governments still resisting the legalization of crypto currency?

Governments fear the loss of power and control. Bitcoin is decentralised and cannot be controlled or managed by a single entity. However, states want and need control over currencies and therefore control over citizens. Central banks are thinking about digital central bank money and are currently looking into implementing it. But this has little to do with cryptocurrencies and should be rejected by citizens. If you look at China, you can see where social control leads.

-How can micro-investors in this market make a profit?

Retail investors should focus on cryptocurrencies that solve real problems, such as Bitcoin as a “store of value”, or projects that meet the ISO 20022 standard, such as XRP, or new projects that rely on smart contracts with high scalability and interoperability, such as LibrumCHAIN. Small investors should always buy cryptocurrencies on the spot market and put them on their own wallets and never give their coins into the hands of strangers. “Not your keys, not your coins”. So don’t leave them on exchanges either, they can go bankrupt. When investing, you should think in the long term and not panic when the market drops so dramatically, as it is currently doing.

-In your opinion what’s the most usage of crypto currencies, is it for illegal purposes or legal goals.

Unless privacy coins like Monero are used, illegal activities with cryptocurrencies are not worthwhile. On the blockchain, every transaction is traceable for everyone. In my view, this is just a pretext to put cryptocurrencies in a negative light.

-United states of America tries to control the crypto currencies by labeling and tracing traders. Do you think finally governments can stop or control the crypto currencies?

The regulation of cryptocurrencies and stablecoins will ensure that many projects face the end. Nevertheless, governments will not succeed in completely controlling or banning the networks. Blockchain technology is already too integrated into our everyday lives for that and the fan base is too big.

– It seems that these days the most use of crypto currencies is just for selling and buying the crypto currencies! and not using the digital monies for buying products or services.

There are providers who make it possible to buy services or products with all cryptocurrencies. Service providers or traders still get paid in fiat currencies. The big exchanges offer debit cards where you can pay with stablecoins or cryptocurrencies. In the long run, cryptocurrencies will coexist with fiat money and paying with Bitcoin and co will become more and more commonplace.

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