Gideon Kimbrell, a software engineer and co-founder of InList
, explained in an article yesterday Why The Cryptocurrency Space Is Stronger Than Ever
. He started by explaining how Bitcoin took less than a decade to take off and peak at $20,000 in 2017. Its price has retracted for about 80% since, but it continues to be the most popular cryptocurrency and it is now a legitimate financial asset.
Kimbrell mentioned about the current bear market possibly lasting until 2019 but stated positively that cryptocurrency will be here to stay. He also gave three steps for investors and companies to reduce the risk despite the bear market:
1. Educate your team.
When crypto got popular, lots of people pose as knowledgeable and expert in the field when in fact, they may not yet fully understand the underlying technology that propels cryptocurrency as loads of people are still clueless about it. Kimbrell says it’s okay not to be an expert. But he suggests that be knowledgeable enough to know how to spot scams and take the time to read information on the real-world value of crypto together with its financial benefits and risks.
2. Let customers know you accept crypto.
Many people who have invested in Bitcoin or other cryptocurrencies for that matter, are of course looking for ways to spend it and maybe earn more from it. Kimbrell said, “If offering crypto payments to customers, trade it to fiat immediately in order to reduce risk, unless you're in it for the long haul. If you’re receiving payments in crypto, you should try to get your vendors to accept such payments, and cash out to fiat only the difference you can’t pay out in crypto.” This is to ensure that you maximize the benefits of cryptocurrencies such as faster and cheaper transactions.
3. Don’t consider an ICO at this point.
“There will always be investment scams, no matter the investment vehicle. There are still ICOs claiming to be STOs that haven't registered any exemptions with the SEC or another appropriate regulatory body,” said Kimbrell. He suggested companies like Polymath, Athena Blockchain, Securrency if you are looking to raise funds in crypto.
As Kimbrell said, inexperienced investors have bought the hype that mainstream media created for Bitcoin even though the crypto bubble was bursting. He pointed out how ironic it is that the same fraud experts who were calling bitcoin “the next big thing” in 2018 have now been asking if it is dead.