Bitcoin has gone absolutely bonkers – more than doubling this year. An even bigger rise occurred in competing cryptocurrencies. Astonishingly, these now comprise more than half the market – partly because of bitcoin’s scaling limitations, which slow down transaction completions.
How much have challenger cryptocurrencies risen?
Bitcoin’s rivals have risen astonishingly fast. Ethereum doubled in just a month, and Ripple went up 10x.
How do you get into these deals?
There’s a very simple, quick way of getting in. Everything you need to know is here.
At the recent Southbank Investment Research Tech Investor’s Symposium, the subject of “initial coin offerings” came up. That’s where a new digital currency is launched, in a first sale of the “coins”. One audience member said he’d done very well out of buying these new cryptocurrencies, just as they’re launched.
Today, we’ll look at one particular cryptocurrency firm.
Many people assume that bitcoin is just a rich man’s toy. After all, what would a Bolivian herder need a bitcoin for? However, it’s a mistake to look at this issue through a Western lens. The weakest currencies are the ones in most need of replacement. Typically, countries in the developing world have currencies regarded as less trustworthy. That’s where you’d logically expect to see the greatest need for disruption.
We’re talking to a man who’s on a mission to bring cryptocurrencies to the developing world. We’ll hear about his vision, and how he’s executing on it.
So now, it’s over to Mohit Kalra from Coinsecure.
AL: How was Coinsecure founded, and what’s your big idea?
MK: Benson Samuel and I founded Coinsecure with the mission of bringing bitcoin to the Indian public. We saw a clear need for bitcoin – both in India, and globally. Since day one, we have strived to provide top-notch services for Indian citizens. Coinsecure continually works to educate and enable individuals and businesses to leverage bitcoin and blockchain technology.
Coinsecure was India’s first company to create a Rupees-based blockchain explorer. We’ve had fully transparent order books since the first trade on our bitcoin exchange, and we also have a public API, which means that other firms can build on our technology. In less than two years we have successfully created a strong foothold in India – with the highest liquidity and trade volumes. Most recently we launched our merchant payment gateway, which enables Indian merchants to accept payment in bitcoin – but receive a pay out in rupees.
Benson is a tech wizard and runs all development. He moderates the India bitcoin forum, and is the primary architect of our exchange. I work alongside the business development team, on new partnerships and opportunities for expansion. We’ve got our eye on development – both in India and globally.
Personally, my background is actually in manufacturing. I learned about bitcoin back in the early days, and immediately saw the opportunities for this technology. From there, I had the privilege of connecting up with Benson – and together we formed Coinsecure.
AL: Do you think that bitcoin’s technical limitations will stop it from expanding to become common in everyday use?
MK: Bitcoin is a new technology for many users. As long as bitcoin companies around the globe are building easy-to-use bitcoin services, it’s definitely not hard to make bitcoin viral for everyday use. Finding developers who understand bitcoin and blockchain tech is more difficult, as making products and services using bitcoin can be challenging. However, as long as users do not get into too much technical detail, it can be similar to using any other banking service.
I frankly see few technical limitations with bitcoin. It is the most expedient global payment method to date. It offers transactions within seconds – and has no risk of fraud or chargebacks. This is a new concept that is only just catching on in India.
AL: Bitcoin has been very unstable, when compared to conventional (fiat) currencies. Do you think that’s a barrier to adoption?
MK: I think you’re asking about price stability – but I’ll also address the issue of technological robustness.
Any new technology can be a bit unstable in the beginning. We are still seeing traditional banking servers being hacked. Furthermore, a lot of fiat currency is compromised by counterfeiting, fraud, etc.
Bitcoin’s support technology is improving rapidly. We are seeing amazing new services, which can track bitcoin addresses around the globe. These help service providers to “red flag” any attacks or hacks. The core technology is very secure – but it’s the bitcoin service providers who have made mistakes in the past. As a result, we have even seen major exchanges being compromised. However, this is similar to what can potentially happen to any other banking or technology company.
As regards price stability, it’s important to remember that the bitcoin ecosystem is still growing. This is an important factor in the price fluctuation of the currency. However, the price had become more stable over the years, before recent rises. For several months, the market sat around 600 USD. There are also several tools individuals use to interact with the currency, without worrying about price fluctuation. One such product is our merchant payment gateway. This allows merchants to accept payment in bitcoin, but get a payout in Indian rupees – without ever holding bitcoin for a significant period of time.
AL: People don’t seem to hold a large proportion of their wealth in bitcoin. Do you think people will ever become confident enough to hold all their savings in a cryptocurrency?
MK: There are three main reasons for this. First – many individuals think they lost an opportunity to invest in bitcoin when the price was very low in the early days. Second – there’s a degree of fear, due to a perceived lack of regulations around bitcoin. Thirdly – India has less liquidity for bitcoin, meaning that it can be difficult and expensive to buy and sell. At Coinsecure, we are working to bring further liquidity to the Indian market.
It’s up to the individual to decide what type of investments they hold. But at this point, bitcoin offers an opportunity to hold on to a currency that has the potential to increase in value, and is a lot more liquid than comparable assets.
AL: Do you think that we’ll see a range of competing cryptocurrencies, or will there only really be one winner?
MK: There are many other cryptocurrencies already, and many of them being traded with bitcoin. I think bitcoin has become the underlying currency for all the other cryptocurrencies. Bitcoin is the strongest cryptocurrency to date, in terms of its value, acceptance and trust. Major global players in the tech industry are accepting bitcoin for their products and services. Bitcoin is becoming more mainstream, in light of the various limitations in fiat currencies.
AL: What do you think your firm might be doing in 10-20 years’ time?
MK: The journey has just begun for bitcoin and blockchain technology. Bitcoin technology is quite disruptive. It’s having such an impact that larger financial institutions and governments are taking a look. Coinsecure will continue to provide top-notch consumer services, along with multiple blockchain solutions for private sectors in various industries. Bitcoin is, by far, the best application that has come out of the blockchain. Seeing this culture moving people around the globe towards a cashless society is inspiring – and there will ultimately be many other services that can be built around bitcoin and blockchain technology.
Are investors making a mistake by looking at bitcoin as a first-world issue? We’d love to hear your feedback – [email protected].
Finally, don’t forget to check out this report on how you can profit from cryptocurrencies.
Best,
Andrew Lockley
Exponential Investor
Category: Investing in Bitcoin