Robin Davids is Head of Strategy at Advanced Blockchain AG, a Blockchain and Web3-oriented company that recently went public. We spoke to him about the current market environment, bitcoin stories, and bitcoin’s role in an increasingly complex market.
BTC-ECHO: One of the businesses of Advanced Blockchain AG are investments in crypto and blockchain start-ups. Among them are Web3 companies like Nakamo.to or peas. However, you will search in vain for investments in Bitcoin start-ups. Why is that?
Robin Davids: I believe in a multi-channel future. We need to consider what the strengths of the different parts and chains are. Bitcoin is, of course, very clearly on the side of the store of value. It remains to be seen whether Bitcoin will become a new form of currency. Of course, Bitcoin is the most relevant asset in this area. So of course we keep an eye on developments around Bitcoin, like the Lightning Network, RGB and Rootstock. Although we are still open to investing in bitcoin companies, nothing has materialized yet.
BTC-ECHO: Nevertheless, again the question: What role does Bitcoin play for you in the crypto market?
Robin Davids: There is a very interesting thesis by Arthur Hayes [Ex-Ceo von BitMex, Anm. d. Red.] which I would like to discuss here. In the corresponding article, Hayes writes about interesting cases that also arise for Bitcoin during the war in Ukraine.
Of course, bitcoin’s main argument is that it is the most adopted cryptocurrency by major institutions. Additionally, of course, Bitcoin also has the attributes of storing value that are not really present in other cryptocurrencies. Ethereum probably comes the closest; not in the current form, with proof of work, but after the merge. Next, we have a proof-of-stake system with a deflationary supply. It is also crucial with Bitcoin that the system, apart from a few small changes, is complete in its current form. It does the job it’s supposed to do very well. This means that the technical risk is very low compared to other cryptocurrencies. The Ethereum merger, for example, will pose a major technical risk.
BTC-ECHO: I would be interested in your assessment of the current market environment. How do you see the crypto market right now? What stage are we at?
Robin Davids: Actually, it’s looking really good right now. But it would be important for some sort of new narrative to emerge. For example, we are currently seeing widespread adoption of institutional money in the market. It’s becoming more and more relevant. We also see a very high level of global acceptance and a kind of dispute between countries about the regulatory framework.
Of particular note is Dubai. We see an open environment, which has also given rise to exchanges such as binance and per bit settle there. This shows that the fear of regulation is rather unfounded. And with that, we also have very good preconditions for the next price increases, which I believe will happen more slowly and over longer periods of time.
The interview is an excerpt from the BTC-ECHO recap podcast. It was released today, April 13 – check back later for the full conversation!
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