There is perhaps no more divisive topic in financial circles than cryptocurrencies.
For some, the concept of blockchain is a total waste of time, fit for nothing other than building worthless cryptocurrencies for traders to speculate on. The downside, however, is that despite the bear market we’re currently in, more and more money, resources, and smart minds are pouring into the space.
We interviewed Crypto Academy CEO Granit Mustafa to get his thoughts on the ongoing bear market, the long-term future of crypto, its polarizing nature, and more.
Coin Journal (CJ): Do you find that crypto newbies are sometimes foreshadowed by the perceived complexity and technical knowledge required to properly understand blockchain?
Granite Mustafa (GM): Definitive. While many business leaders have a sense of leadership and rely on experts for industry-specific expertise, a deep understanding of an unpredictable industry appears to be a key factor in intimidating potential traders, investors, and entrepreneurs.
It can be daunting for institutional and individual participants to achieve anything in this industry. On the other hand, there are so many people who want a piece of the new and rapidly evolving industry that they dive headfirst without having all the information.
Next, although the technicalities and the technology itself are downright complex, the concept behind blockchain and cryptocurrencies is pretty simple, which I think is what makes people want to get involved anyway.
At best, being in the industry itself provides hands-on knowledge of the inner workings of blockchain and the dynamics within the industry. At worst, however, rushing can hurt the prospect if care is not taken.
CJ: A lot of crypto remains quite divisive, with some people saying there are too many money-hungry projects and others saying it will revolutionize the economy as we know it. Why do you think there is such a wide range of earnings forecasts?
GM: As in any other industry, there are those who firmly believe in the potential of the novelty and application of technology or emerging industries, and those who resist it for fear of the unknown.
We know that there have always been rip-offs and Ponzi schemes in the financial markets, we know that since the advent of this digital age there have been multiple devastating hacks and a range of other criminal activities in every industry. This means that any revolutionary invention or innovation, or in this case disruptive technology, is a double-edged sword.
On the contrary, there are those who see the glass half full and firmly believe in the potential of technology not only to make people’s lives easier, but also to fight the very crimes that unbelievers keep pointing out.
The wide range of these expectations stems from the fact that the technology has widespread adoption, and with the benefits of that widespread adoption come willy-nilly some shortcomings that need to be addressed sooner rather than later.
CJ: Do you think the current bear market will result in some newcomers exiting the industry for good?
GM: Absolutely. I would like to think of bear markets as a driving force for challenging participants. Bull and bear markets represent the fundamental cycle of markets, and this is nothing new. This repeating cycle has existed since the beginning of markets and, frankly, will never go away.
The fear in the market is pretty high right now, but it’s a testing ground for those who believe and make informed investment decisions at this critical time, and for those who can’t handle it and choose to put their attention and money on it to fix something else.
It is clear that an unhealthy and unnatural growth in the markets would lead to an equally abrupt and severe crash. Although the market is new and volatile and full of uncertainties, the basic behaviors and concepts apply even though the uncertainty is higher.
Take MicroStrategy for example. One of the leading institutional investors holding Bitcoin (BTC) against all expectations, Michael Saylor, the CEO, said that MicroStrategy would only liquidate its Bitcoin (BTC) holdings if Bitcoin (BTC) fell to $3,000, and that they would post other assets as collateral rather than decide to sell. This is an example of industry owners who are not intimidated by a passing cycle.
CJ: You state on your website that you believe cryptocurrency is the future of finance. I’m curious, what role do you see for Bitcoin in this future?
GM: My team and I wholeheartedly support the claim that blockchain and cryptocurrencies will definitely redefine digital finance.
Contrary to popular belief, regulations are very important to facilitate and accelerate the adoption of cryptocurrencies, including Bitcoin (BTC), around the world. As acceptance increases, Bitcoin (BTC) will underpin its role as a safe haven and store of value and will take the form of a proper digital currency as institutional acceptance increases and global payments are facilitated by the flagship cryptocurrency.
Bitcoin (BTC) holds the key position in the market due to its limited supply and due to liquidations caused by the bear market, Bitcoin (BTC) is ripe for revenue right now. The time to buy is now. In a few years, many people will look back to the time when Bitcoin (BTC) traded at $20,000 just as they look back to a time when they could have owned Bitcoin (BTC) for $2.
CJ: Has the industry’s growth since then surprised you? Crypto Academy was introduced in 2016?
GM: I’m happy that the industry has grown, but I’m not surprised. I’ve been in the industry long enough to see its potential for widespread application. I’m glad the rest of the world has caught up with the industry believers.
On the contrary, I was expecting more growth and a better regulatory landscape to facilitate the adoption of blockchain technology and cryptocurrencies, so I’m a bit disappointed in that aspect.
However, I expect Binance and its CEO Changpeng Zhao (CZ), as a key accelerator for adoption, will prompt and motivate governments and financial institutions around the world to buckle up and get on board.
Coin Journal (CJ): You publish many price predictions on your website. What is the track record for these, and how do you come up with such predictions?
Granite Mustafa (GM): We base our price predictions on overall market movement, major indices and sentiments such as the Fear and Greed Index, cryptocurrency roadmap, market acceptance and expert opinions to analyze and present the most accurately anticipated price movement.