After Promoting Them for Years, Xapo CEO Says Cryptos May Fail


October- 30, 2018 | AtoZ Markets

Xapo founder and CEO Wences Casares has said in an interview with Bloomberg, that cryptocurrency is an intellectual experiment that might fail, describing the current time for digital assets to be as it was for the internet in 1992.

“It may work, it might not work, we are in the equivalent of 1992 for the internet.”

The Argentinean entrepreneur—known as “Patient Zero” for his role in elevating Silicon Valley’s interest in cryptocurrency—said that virtual currencies tend to succeed more than failing, according to the current indications.

We need a “non-political standard of value” for digital currencies

Casares mentioned he would say bitcoin is successful if it becomes “a global standard of value and settlement”, and that it can still represent a universal standard, even though it is unlikely to replace fiat money.

“Just like we have a non-political standard of weight; we need a non-political standard of value.” said Casares.

Casares made significant endeavours over the last 7 years to convince the millionaires and billionaires in Silicon Valley that Bitcoin will be “the global currency of the future”, persuading them to purchase some, pledging he would work on protecting cryptos.

It is worth mentioning that Xapo is said to have underground vaults in different parts of the world, including one in a decommissioned Swiss military bunker—that as per reports held about $10 billion of bitcoin earlier this year, or nearly seven per cent of the global supply.

LinkedIn co-founder Reid Hoffman, and former Wall Street trader Mike Novogratz, are some of the names that support Xapo, according to the media.

Casares had said in January, the future of crypto lies in the cooperation around a “singular, robust blockchain”, and BTC is the most likely to be the blockchain of choice, according to him.

Cryptocurrency from a professional perspective

In a short video filmed for AtoZ Markets, Yagub Rahimov – CEO of the 7Marketz Group and ICO advisory, commented on the interview in saying that people might be frightened of the term “experiment” to be used for identifying bitcoin, reminding that the aforementioned digital currency served against the global financial crisis when it saw light.

Rahimov cited that in a glance at the history of the cryptocurrency market, one can find that the latter is evolving and opening up more. Still, Rahimov- contributing with his wide expertise in the industry, sees that there is still much to do on the way, and having some ten years of history since bitcoin first appeared, does not mean a big deal of time.

“we are ten minutes in a century”, said Rahimov in the video.

Rahimov referred to that there should be differentiation between “blockchain” and “cryptocurrency”, where the latter is an incubator in which the former is being used.

“crytpos are financial elements, while blockchain is a technology”.

The experienced investor expects as well that crytpos will end up being regulated, stressing that regulating them is a step on the right way, which requires on the other hand securing the industry and its usage.

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