While ICOs (incentive coin offerings) are very much on everyone’s lips nowadays, this will change in the following period, at least according to Bill Barhydt, the CEO, and founder of crypto wallet and exchange service Abra.
According to a CNBC interview, the CEO explained that crypto ETFs (exchange-traded funds) are bound to happen, and even went as far as to say that “I’ll bet on it.” Barhydt further declared that regulators such as the SEC (the US Securities and Exchange Commission) are still trying to understand the rapidly evolving crypto-related technologies.
He also said that he thinks that “the issue with the SEC … is that the people who are doing the applications don’t fit the mold of who the [regulator] is used to approving…I think what’s going to happen is that somebody who looks, feels, and smells like the way they want them to…will probably get approved within the next year. [This could] hopefully open the floodgates for entrepreneurs who are also [currently] operating safely and soundly, but don’t necessarily fit the mold [or profile] of what the SEC wants to see.”
Regarding the growing demand for ETFs, the CEO confidently declared that “it’s going to happen in the next year…I would actually make a bet on it…[as] there’s just too much demand for it.”
The importance of knowing the history of traditional money
The interview touched upon more in-depth concepts of the financial world, and Barhydt hinted at the fact that knowledge is crucial. More to the point, he thinks that everyone should learn about the history of traditional money as a medium of exchange and store of value.
“People should read, learn, [and] understand what governments have been doing to money for hundreds of years,” he recommended. He went on to further state that “Every currency in history has failed, except gold which is really a metal and a commodity.”
The interview took a fairly philosophical turn, and the CEO even asked: “When was the last time planet Earth had a new asset class?” Just like most fellow crypto entrepreneurs, the Abra founder pointed at one of the biggest issues with cryptocurrencies and blockchain tech right now, namely their complexity.
Abra is not a trading app; cryptocurrencies are here to stay
In short, he explained that the mainstream adoption of cryptocurrencies might be inhibited by their highly technical nature. The multiple concepts related to digital currencies, such as mining and trading, are well beyond the knowledge cap of most average consumers.
He also took the opportunity to point out the fact that Abra is not a trading app, but, in fact, it is an investing app. The CEO explained that the average Abra investor is actually “making long-term bets on the fact that cryptocurrencies are here to stay.”