Chapter ShapeShift: Crypt — a territory of uncertainty
In the bitcoin community, listen to Eric Voorhis, one of the prominent pioneers of kryptonyte. After the first bubble in 2011, when the price of the home cryptocurrency has dropped from $31 to $2, Eric said that in the future bitcoin will rise in price up to thousands of dollars. It was he who founded the ShapeShift crypto currency exchange that has attracted investors like Blockhain and Lakestar Capital, as well as Oliver Bussmann, President and co-founder of the Swiss Association of Crypto Valley. In a number of previous cryptocurrency projects Voorhis includes BitInstant, Coinapult and SatoshiDice gaming platform. On the last project accounted for the majority of bitcoin transactions in 2012 and 2013.
Lawrence Wintermeyer, Director General of the British FINTECH companies Innovate Finance, at the may conference, Money 2020, which took place in Amsterdam for a month before bitcoin reached its annual low at $5938, discussed with Vericom prospects of kryptonyte and the ways of its development through education and regulation as well as strategy ShapeShift. The original interview published by Forbes on September 14.
Where is the stock market
Wintermeyer: have we ever bearish cryptocurrency market?
The Voorhees: Yes, I would say that we encountered a “bear” market. As for the price, I think we are close to the minimum but you can stay here for a while before return to a bull market. As they say, the crypt is the crypt. This market may last for several years, or we will see it end in a month or two. Wouldn’t surprise me. The only thing we can be sure of is that this is the territory of uncertainty, so we can only speculate and make assumptions until we have somewhere to move.
Wintermeyer: What can be called the main obstacle to a widely accepted cryptocurrency?
, Voorhees: The biggest obstacles — lack of education and habit; we need more educational resources and more simple, understandable and less daunting products and services to new users. Need to teach people how to safely and effectively use them to destroy their old “Fiat” habits.
We need better educational resources for people with no experience in crypto-currencies or blockchain. We can’t hope that people will come. We need to try harder to help them see the potential of this technology and make it convenient to use.
Now there are no technical aspects which would be an obstacle. There’s always room for innovation and improvements, but the cryptocurrency is already working, and working well, and the speed of its development is phenomenal, so I wouldn’t call the technology a problem.
Overcoming challenges with global regulators
Wintermeyer: Justified is such a strong concern of regulators about decentralized exchanges?
The Voorhees: I don’t think regulators understand the extent to which a fully decentralized services may supplant them. Most regulators still trying to understand what bitcoin is, discuss whether the cryptocurrency of the money, and want to decide how many tokens to classify as securities. They are busy with all these, and in the meantime created decentralized alternatives. The more they suppress the market, the more opportunities from decentralized alternatives.
In the end, people want and should be free as long as it’s not hurting anyone, and because decentralized platform help us to achieve this freedom, they are inevitable. When it comes to ShapeShift, many people mistakenly think that we are decentralized. ShapeShift is a digital trading platform, which did not keep; which means that users can trade crypto-currencies using our service, but we’re not holding their funds in contrast to traditional exchanges.
Wintermeyer: What steps can make regulators globally to adopt this technology?
The Voorhees: Regulators can learn from Wyoming, which introduces friendly to cryptocurrency regulation. Regulators focus on the negative characteristics and risks of cryptocurrencies, but they have to admit that the main reason for which this technology was created that people were tired to trust the bureaucracy of government. With this technology a consumer can be programmed and become much more efficient than it is now. If regulators really want to protect people, they should be happy about this.
Wintermeyer: what makes ShapeShift to fit the changing rules?
The Voorhees: We create our own team of compliance monitoring under the supervision of Greg Arroyo as our chief officer compliance and Veronica McGregor as the chief legal officer. We are forced to spend literally millions of dollars just to navigate the changing and unclear rules for global regulation, so we take this very seriously. This is a huge burden that distracts from innovation and productivity.
The business model ShapeShift
Wintermeyer: What makes the business model ShapeShift special?
The Voorhees: ShapeShift does not store customer funds. Security from the point of view of consumer protection — the basic principle ShapeShift, and we always considered it the Foundation of our business.
Wintermeyer: What were the motives ShapeShift when buying Bitfract, a tool for managing a portfolio of digital assets?
The Voorhees: Bitfract developed a product that we ShapeShift ourselves started to create. Their vision coincides with ours, so the purchase was a natural step.
Wintermeyer: How does the strategy ShapeShift?
The Voorhees: we now Have some incredibly interesting projects, but we are not yet ready to talk about them. As their development ShapeShift will definitely go public. However, we have just announced the first phase of our FOX token and client software, which will give users the best fees and limits for the exchange.