This article is machine translated, Original Interview with Georg Steiner, CryptoNews.de – original in German language
Thank you for your time Robby Schwertner akaCryptoRobby. The crash of the cryptocurrencies at the end of 2017 has shocked many crypto fans first. Was that a cleansing storm or the hard landing on the ground of reality?
The price increase in autumn and winter 2017 was dramatic, it went vertically upwards. Therefore, it was clear to experienced traders that this would not end well. And so it came in January and February 2018 to the big crash. Many weak blockchain projects and scams have been swept away by the market. Suddenly Bitcoin and cryptocurrency were not so cool anymore, crypto trading was not that easy anymore.
I think it was very beneficial that it came to a market adjustment, it sifted chaff from the wheat. People working on long-term projects now have a chance to program their blockchains and develop their decentralised applications with much less hustle and bustle.
Currently, I see the market in a sideways movement, which will certainly last for another 2-3 years. Well-known, but not undisputed, influencer Julian Hosp saw the bitcoin price of $ 50,000 in July. He had to retract his forecast recently. Such announcements are simply dubious.
Already in March, I warned that 2-3 difficult years for cryptocurrencies are imminent. There is a pattern in the Bitcoin price that occurred in 2011 and 2013: a sharp rise followed by a crash and a longer phase of sideways movement. Of course the conditions are similar.
But in the near future, I see no highs for Bitcoin but the hard slog. The weakness of the Bitcoin Lightning network is evident. In my opinion, this is a total faulty design. This will certainly make Bitcoin not attractive. Why? The system of channels requires funds to be put in the system, only small amounts of up to 50,- US-Dollar can be transferred and it still has many bugs.
Is the blockchain’s technology actually “The Next Big Thing” or is it threatening to sink after a blaze?
Yes, Blockchain has the potential to disrupt entire sectors. The explosive force is that instead of sending information over the Internet, you can now transfer values. The internet is great, but it is weak when you transfer value, like money or stocks, or km performance. Then one still needs a so-called “unity of trust”.
When I transfer online, there is still a bank in the background, which guarantees that the transactions will be carried out. For Bitcoin and many other crypto-currency, banks are not needed. I will send the amount and it will be sent directly over the internet. I have no access afterwards and the counterpart can manage the funds.
By the way, Nobel laureate Milton Friedman predicted 20 years ago that there would be an internet-based currency. Because there is no reason why only a nation-backed currency may be used. When people gain confidence in other forms of currencies, there could be a breakthrough. For example, a blockchain-based cryptocurrency may then become a world-wide reserve currency that is not controlled by a single nation.
My dream is a United Nation Currency, not controlled by a single nation
I think this vision is just wonderful. The financial sector is ne of several areas being overhauled by Blockchain. There are also promising approaches in the energy sector, for transport, for the travel industry, for the management of personal data. Cryptocurrencies may be a hype in the short term that has now hit the ground of reality, the bubble of Blockchain will certainly not burst.
What is your mission as CryptoRobby, as an ICO Advisor, Social Media Influencer and Keynote Speaker?
My personal mission as CryptoRobby is to find and support blockchain-based applications that add value to people, benefit to society. For this I have created your own hashtag: #ReturnonSociety. It is derived from return on investment.
Investors always have the profit and want to make as much profit as possible with their capital, a return on the investment. I created the persona CryptoRobby to support projects with growth potential, which I consider very important. We have to reach people in daily life. And it should offer added value. We want to develop blockchain-based services that make our lives simpler and cheaper, which will make the economy easier for us with cash, various credit and debit cards, and so on. Where apps are developed that provide true mobility solutions.
How do you assess the further developments in the regulation of cryptocurrencies and ICOs? What would make sense and what hinders further development?
Regulation is necessary. The first step is first a definition of terms. Cryptocurrencies are currently differentiated into coins or tokens. Coins tend to emphasize the money character, while tokens are more likely to be vouchers. However, there is no clarification in any case law worldwide. It is also nowhere defined in a law.
In order to achieve legal certainty for start-ups and thus promote innovation, regulation is important. However, even countries with strict regulations, such as the US, China and Germany, are seeing many start-ups migrating and being forced to leave the country.
Countries such as Malta, Liechtenstein and Singapore offer a broader legal framework here. I participated last week in a large blockchain conference in Malta with over 8,500 participants. This is remarkable for this small island state.
The Prime Minister of Malta gave the opening speech and promised his full support to the blockchain start-ups. Here, Malta uses its opportunity very skilfully, while countries like Germany, Italy, Poland and Austria have already missed the train. Liechtenstein is also positioning itself very clearly, as from the end of November 2018 a specific blockchain law comes into force. The small state of Liechtenstein already accommodates four times as many Blockchain companies as the neighbouring state of Austria.
What could bring the final big breakthrough of cryptocurrencies? Does it have to be a financial crash first, or is it enough for institutional investors to make big investments?
It will be a mixture of both. Well-known economists predict a substantial global economic crisis over the next 18-24 months, with countries such as the US or Brazil adding to their fears. At any rate, it can be seen that countries in crisis tried to use cryptocurrencies as a lifeboat as an alternative to the worthless state currency.
Venezuela put the PetroCoin on the way, the project failed, incidentally, because it was very poorly managed. In crisis-stricken Greece, people fled to Bitcoin early on because their own currency depreciated sharply. Russia considered circumventing sanctions with cryptocurrencies. Could be good that a financial crash uses cryptocurrencies.
The entry of institutional investors is imminent. They wait until the fog clears and you have a clearer view of the crypto currency landscape. I myself offer analyses for crypto currencies with a partner. We offer these analyses to banks and financial institutions and the interest is very high. Banks do not want to act yet. But they are ready to train their employees because they receive hundreds of requests every day and are not yet allowed to enter cryptocurrency trading because of their own strict guidelines. That will change very soon.
Here and there, states and start-ups experiment with digital Fiat currencies. At the end of the day, could cryptocurrencies cause cash to disappear and national banks use technology to fully digitise Fiat currencies?
Cash will disappear even without cryptocurrency. It is only a matter of a few generations. Then one wonders why one has used so impractical metal coins and paper notes. Just as we are surprised by early currencies such as shells, gems and gold lumps.
Cryptocurrencies could cause classic cash to disappear even faster. I was in Hungary, Switzerland and Austria last week. I needed three different currencies. And these countries are not big states, they are not even as big as Shanghai or Tokyo together.
My dream is that we get a new reserve currency that is not tied to a state. If national banks put on their own cryptocurrencies, I find that not spectacular. There are also research reports that for large countries, creating a separate cryptocurrency is not an advantage, for smaller currencies saw benefits due to the cost savings.
The well-known German stock market expert Dirk Müller is convinced in his new book “Machtbeben” that Bitcoin was an invention of the NSA in order to test the technology anonymously. What do you think of such theories?
I know the book by Mr. Dirk Müller. He claims something he can not prove. Such statements are a symptom of our time, it shows how sick the system is. Through social media, Mr. Müller serves an audience that like to hear such conspiracy theories, he serves this auditorium.
What makes me angry is the way people are taken for idiots. Skilled rhetoricians like Muller and Julian Hosp are the new preachers of wealth, they explain the world to us. And through their reach they collect funds. Mr Müller announced the day before yesterday that a fund in his sphere of influence has just exceeded the 100 million mark and that everything is going well. Clearly for him, things are going well. For the majority of traders with small income, things look quite different, they lost fortunes in this year!
Interview with Georg Steiner, CryptoNews.de – original in German language
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