Through an interview Alyona Karpinskaya
Interview: Norbert Goffa
Ask: Currently everyone is talking about the sky-high price of Bitcoin. Did you expect Bitcoin to hit its all-time high by the end of 2020?
A: Frankly not. I expected it to get even stronger by the end of the year, but no one expected it to happen at this rate. We analyze the forecasts a lot with our team about the possible price change of Bitcoin, but this pace was really surprising. As far as I am concerned, I refrain from predictions, and I do not consider the theories that predict a $ 100,000 forecast in a relatively short period of time to be realistic. I think it’s not about predicting exact prices, it’s about predicting trends. I think that too fast growth also has disadvantages, just look at the current market.
Since everything is determined by Bitcoin, it is necessary to consider the negative effects caused by strong price increases. Of course, who wouldn’t be happy if their Bitcoin is worth more and more? It is of course in everyone’s interest, but at the same time, other securities should be watched as Bitcoin has an outright dominance in the cryptocurrency market, and therefore – a strong Bitcoin can be the other participants in the market. The ones who are certainly very satisfied are the miners as their costs change for the better with this price.
Ask: You referred to altcoins in the previous question. Could you elaborate on that to explain how you see market trends?
A: Whenever Bitcoin gets stronger, all altcoins, which cannot keep up with the pace, weaken compared to Bitcoin. When Bitcoin weakens, the altcoins typically lose much more of their value, because they are already behind Bitcoin. As a specific example, if we look at the all-time high of Ripple or Ethereum, we see that they are very far from the prices they had previously reached. However, Bitcoin already surpassed that price, so we can say that everyone has suffered a severe defeat against Bitcoin.
Of course, this does not mean that one altcoin – the new ones in particular, which are mainly DeFi projects – can’t make a bigger profit than Bitcoin. In my example, I was referring to the veterans, who happened to be known by the public as an alternative to Bitcoin. I could have laughed at these visions years ago. Not only can Bitcoin not be destroyed, but it is nearly impossible to even get close to. I consider this a good thing and a long-term benefit as there is no need to find alternatives for the same purpose that we use Bitcoin. More importantly, a project presents such solutions that Bitcoin cannot be counted on. From this point of view, Ethereum is a prime example, as it provides such a solution that Bitcoin is not capable of. Personally, I think competing with Ethereum is more of a challenge to the altcoins than competing with Bitcoin. Because it is like challenging dolphins in a swimming competition in the ocean.
Ask: You mentioned Ethereum as the epitome of the cryptocurrency market. What do you think, how will Ethereum 2.0 affect the price?
A: If I could answer simply, I would say that it is not really a fact that Ethereum creates such a smart contract network that leverages the investors’ Ether. I don’t want to predict anything, but plotting is somewhere around inflation. This is like bank interest, but it is not the same. My view is that Ethereum’s long-term strategy is not that good as these solutions also make Ethereum less worthy. Of course, this is not clearly black or white. There could be a price boosting effect of Ethereum 2.0, but I see a market that works differently where we can’t say that such an upgrade will bring such and profit for investors. There are so many unpredictable factors, so these forecasts are meaningless beyond marketing value.
Let’s say Bitcoin will drop to 20k tomorrow. Is it good or bad? Of course, for those who have bought in recent days, it is very bad. On the contrary, for those who have been consciously building their Bitcoin portfolio for years, it is certainly good as a good trader makes their money from movements and not just constantly rising prices. This is exactly why DeFi projects are popular as you can make a lot of money with them. Let’s take a look at the recent period of Year.Finance.
Ask: You mentioned DeFi projects easy profitable opportunities. What’s your take on how long the buzz around DeFi will last and what will be the end?
A: Right now, the focus on DeFi projects has dropped and everyone is looking at Bitcoin. I would like to add that this is correct. What happened to Bitcoin is exceeding expectations for 2020. And that is answering your question about whether DeFi will continue on the path it has taken. DeFi has a future as DeFi stands for the decentralization of the cryptocurrency market. You would think a centralized exchange has a lot of benefits as it secures its clients’ money. Yes, and it is also the case with an exchange that does not pay out the client’s money. Unfortunately, we have gained considerable experience with such cases. Exchanges can disappear with users’ money! You could of course say you should use exchanges in good standing. Of course it is one way, but the question is price. I bet the success of newly arrived tokens lies in the fact that at the time of launch, one or two TOP exchanges are already backing the project. If I can conspire a little bit, I would say the exchanges also own these projects. If a token is on one of the TOP exchanges, that is already half the success. I would also like to ask, how decentralized is the cryptocurrency market really?
Ask: If we think about what you just said, we can assume that it is easier and more cost-effective to create an ERC20 project than to create a mint on own technical innovations. Is this what you wanted to point out earlier?
A: Yes, that’s exactly what I wanted to refer to. You understand. You can argue about it, of course, but it’s not worth it. The cryptocurrency market prefers the token-based approach to trading, rather than the individual mint-based approach. I don’t mean it’s a wrong approach because from a speculative point of view, one token may be enough for success. If I generate 1 million tokens, which is the maximum of my project’s inventory, I could easily give 250,000 to a purse to have it launch the project. This is what I referred to in the previous question.
This does not mean your own mint, which is based on a unique technology, would be no more valuable or no more valuable than that of token-based projects, whose purpose is limited to speculative trading. Both approaches have advantages and disadvantages. This is why I think that stock market trading may be more effective than token based, but it is by far not enough in the case of real terms. Hence, I think a unique technology will be more rewarding in the long run.
Ask: Let’s talk about ILCOIN for a moment. You created the RIFT protocol about a year ago. What has happened in the ILCOIN Blockchain project since then?
A: We have been transformed in several ways. While we won the race for block size increases, I could say we were the only ones to cross the finish line. Not even we ourselves expected this. This is not good, certainly not good, because if you are the only participant in a race then it is no longer a race. In a word, all the attention has been drawn from the block size increase and on-chain based data storage, and focused on DeFi projects. I admit we did not foresee this, but I think we are not alone with this problem. We need to see where we did better and where the match ended. Why would you end up with a block of 2 GB, if someone made a block of 5 GB? You can award up to one free promotion for the winner. At the same time, I think the day will come when the RIFT protocol will be commonplace.
Then add COVID19 to all of this, which also got in the way of our plans. You can say that 2020 was certainly not our year. At the same time, a lot of good things happened, and these advancements will have their market effects in 2021. Suffice it to mention our VR game as we have serious plans for it in the future as Age of ILCOIN: Retribution will be the main element of the Be DCB. In addition, we have plans to make ILCOIN part of DeFi projects as we believe in the benefits of expanding Decentralized Exchanges. All in all, there is a lot going on in the background, and it certainly will bear Results.
Ask: If I understand correctly, are you saying that the price of ILCOIN is expected to increase in the coming year? Looking at this year, your price has plummeted. Is there any special reason for that or is it just the way the market went for you?
A: That’s a tough question, and I was hoping you wouldn’t ask it. But it is clear that this question is what everyone is thinking about. I don’t think there is a project that likes to talk about falling prices. I would add that we are not alone as we are in a comparatively better position than some of the best altcoins. But I wouldn’t want to hide behind others, so the fact is that we also lost a lot this year. At the same time, I don’t see this as such a big problem. All cryptocurrencies have gone through the same process. Bitcoin took two years to make its way back to its former self, and it even surpassed that. The fact that we have lost much of our prize does not mean that there is no potential within us. I think this is exactly why we have a good chance of taking off in the future. We need new business partners, of course, and reforms are also needed. We are working on that and I am happy to say that our outlook is very bright.
It is normal to ask why our price has fallen. There are several reasons for this, which I would not like to speak of, as it is very speculative. It is certain that we generated more enemies than friends with the 5GB block. We have ended our collaboration with some of our partners and of course interacting with the exchanges has not always been a fun ride. We have learned a lot from these cases, which is why I was talking about reform. ILCOIN is a project with great potential as we have such a development team behind us that has already proven itself. I am sure that we will emerge as the winner of the blockchain technology competition in the long run. I don’t promise anything that isn’t sober. I have never made any factual statements about the price of Bitcoin. And that’s no coincidence, I leave assumptions to others. I am interested in trends and tendencies. This is how I look at ICOIN. I don’t mean a particular moment, because you can’t draw long-term conclusions from it. I believe in trends, tendencies and innovation. That is why I represent ILCOIN.
For more information about ILCoin, please visit: https://www.ILCoincrypto.com/
About Alyona Karpinskaya:
Founder of the PR Blockchain agency, technical writer, journalist and publicist.