Bitcoin, which declined continuously all the way through 2018, unexpectedly surged in April. The world’s largest cryptocurrency shot straight through the psychologically important mark of $8,000 only to pull back slightly on the same day. Internet ombudsman Dmitry Marinichev discusses the reasons for Bitcoin’s growing popularity in an interview with Invest Foresight, reflecting on its rally’s consequences for the global economy and on whether cryptocurrency is worth investing in today.
– What are the main factors that have spurred Bitcoin’s growth?
– To be honest, I do not know. I think it was just the right combination of circumstances. It just went up in response to people’s growing need for cryptocurrency. Also, the conflict between large investors, which had led to Bitcoin’s collapse earlier, was finally settled. Bitcoin hit its absolute low in March, triggering the crisis on the mining market. Most companies shut down the production of mining equipment because it became unprofitable. Now, hopefully, the market will revive.
– What is the ceiling cost of bitcoin?
– There is no ceiling. Its growth will depend on the external environment: the more turbulent and unstable it is, the higher its price.
– Will Bitcoin continue to grow this year, or will it collapse again soon?
– I think this year will be a year of good news for Bitcoin. It is growing rapidly on positive news, so if there is more of it, its value will go up. Also, investors will not be wary of investing more money in the crypto economy.
– Do you invest in cryptocurrency?
– No. I develop solutions that are in demand in the world of cryptocurrencies. For example, now we are working on a microprocessor (for cryptocurrency mining – ed.) and associated software products.
– Would you advise to invest in cryptocurrency now that it is on the rise?
– I have never advised to invest in cryptocurrency before, and I am not starting now. It is not a stock, not a bond, not a loan – with a high degree of probability, cryptocurrency will not yield unless you play very long. What you should do today is believe in cryptocurrency, not invest in it. If you are clearly aware that the economy of the future can be based on green dollars or some other colored pieces of paper or non-cash money, then you understand the essence of today’s processes. Crypto assets will underlie the economy of the future.
– How would you briefly describe the economy of the future?
– The economy of the future is the economy of robots. No one is going to quarrel over where a plant should be located, in America or in China, because it will no longer matter. The main thing is that the plant will be managed by no more than 10 people. All the work will be done by machines. Therefore, the main fight will unfold for the intellectual product – for the ‘brains,’ for the people capable of creating the means of production. And cryptocurrency will service this new reality.
By Alexander Stolyarov