Robin Davids is Head of Strategy at Advanced Blockchain AG, a Blockchain and Web3 oriented company that recently went public. We spoke with him about the current market environment, bitcoin narratives, and the role of bitcoin in an increasingly complex market.
BTC-ECHO: One of the business areas of AG Advanced Blockchain are investments in cryptocurrency and blockchain startups. Among them are Web3 companies such as Nakamo.to either Moles. However, it will look in vain for investments in Bitcoin startups. Why is that?
Robin Davids: I believe in a multi-chain future. We need to see what the strengths of the different coins and chains are. Bitcoin is, of course, very clearly on the store of value side. Whether Bitcoin will become a new form of money remains to be seen. Of course, Bitcoin is the most relevant asset in this area. So of course we keep an eye on developments around Bitcoin such as the Lightning Network, RGB and Rootstock. While we are always open to investing in bitcoin companies, nothing has materialized so far.
BTC-ECHO: However, the question again: What role does Bitcoin play for you in the crypto market?
Robin Davids: There is a very interesting thesis by Arthur Hayes [Ex-Ceo von BitMex, Anm. d. Red.] which I would like to address here. In the corresponding article, Hayes writes about interesting cases that also arise for Bitcoin in the course of the Ukraine war.
Of course, the main argument in favor of bitcoin is that it is the most widely adopted cryptocurrency by large institutions. In addition, of course, Bitcoin also has store of value attributes that are not really present in other cryptocurrencies. Ethereum is probably closer to that; not in the current form, with proof of work, but after the merger. So we have a proof of stake system with deflationary offer. It is also crucial with Bitcoin that the system, aside from a few minor changes, is complete in its current form. It does the job it is supposed to do very well. This means that the technical risk is very low compared to other cryptocurrencies. The Ethereum merger, for example, will pose a significant technical risk.
BTC-ECHO: I would be interested in your assessment of the current market environment. How do you see the crypto market today? What stage are we in?
Robin Davids: It’s actually looking pretty good right now. But it would be important for some sort of new narrative to emerge. For example, we are currently seeing a lot of adoption of institutional money in the market. This is increasingly relevant. We also see a very high level of global acceptance and a kind of dispute between countries about the regulatory framework.
Of particular interest is Dubai. Here you can see an open environment, which has also given rise to exchanges such as binance Y bybit settle there. This shows that the fear of regulation is quite unfounded. And with that we also have very good prerequisites for the next price increases, which in my opinion will take place more slowly and over longer periods of time.
The interview is an excerpt from the BTC-ECHO roundup podcast. It comes out today, April 13. Check back later to see the full conversation!
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