What potential does bitcoin have? Do cryptocurrencies mean a paradigm shift? Will halving affect the price of Bitcoin? These are some of the questions that Cointelegraph asked in Spanish Herminio Fernández de Blas, CEO and founder of Eurocoinpay.
Fernando Quirós (FQ): What potential do you see for Bitcoin and cryptocurrencies?
Herminio Fernández de Blas (HF): In the past few decades, three technological milestones have been created as value propositions: computers in the 1970s; the Internet in the 90s; and in 2009 Bitcoin and its blockchain. There’s no denying that the first two were successful, but Bitcoin and cryptocurrencies are far superior to them, as their blockchain payment network solves countless real-world use cases for people. And Bitcoin is money that is far superior to the rest of the old Fiat money we know. It is safer, more transparent, faster, more divisible, more economical, finite, better unit of account and means of payment. It is true that it has no earlier value than money, but the intrinsic value of its blockchain makes it hugely profitable, since using its payment network would save the world more than $ 700,000 million that would flow into consumers’ pockets.
FQ: Do you see cryptocurrencies as a paradigm shift in finance?
HF: I would say yes. When a technology is superior to what we know about security, transparency, etc., it ultimately has the upper hand. We will soon see how financial institutions and central banks that have criticized them so operate with them as digital money through blockchain and say that this technology is a gift to the world. But of course they’ll only say it if they control technology and create a monopoly. Cryptocurrencies are a genius and will create a more transparent and fair financial world
CF: Do cryptocurrencies really serve as a store of value?
HF: Gold is now the largest store of value. However, if we make a comparison between the two assets, we will find that Bitcoin is much better. It has a better stop to flow, it is finally with 21 million units, it is a better means of payment, it is easier to carry because your mind serves as a wallet. It’s safer since Bitcoin hasn’t been hacked since 2009. With 100 million units per Bitcoin, it’s more divisible.
If we now analyze 2020 and the Covid 19 crisis, we can see that Bitcoin started in 2020 at a price of $ 6,100 and is now valued at around $ 10,000. Then 77% gained in value. The ounce of gold in January 2020 was valued at $ 1,500. It is trading today at $ 1,740 (an increase of 17%). Bitcoin has been upgraded a million times since 2009. It is the best good in history. With this data, I can say that Bitcoin is a good asset.
CF: Do you think more financial education is needed in the general population?
HF: We spend our whole lives making money and realizing our dreams, but this money, which is so hard to get, turns out that we don’t care how it works. In addition, it is not taught at the academic level either. I always say that when you invest in a financial asset, you should go online for a few hours to find out how it works. What is leverage, what are futures, what is an EFT? It is important to know that you can lose the entire investment. Therefore, you should only invest what you can lose. You should also know that if you invest 100 euros and lose 100% of the investment, you will lose 100 euros. However, if you are successful, you can double your investment several times.
CF: How do you see the crypto ecosystem in Europe? And in Spain?
HF: Both in Europe and in Spain, they are always very demanding in terms of legislation and regulation. Eurocoinpay has asked the government to regulate the crypto world so that it offers the same legal security as the other sectors. I believe that innovation and technology will change the world, young people will no longer be able to find work, they have to invent it. Governments that invest in RD and I and the country that drives innovation will determine the rules of the game.
FQ: What is Eurocoinpay? What services do they offer?
HF: We are a platform that develops blockchain technology for public and private companies. We have several business areas. With our Eurocoinpay app, you can use your mobile phone to pay in stores and physical companies worldwide with different cryptocurrencies and without commissions. The trader can also choose which cryptocurrency to calculate. This payment is made in seven seconds. We also have a virtual Eurocoinpay POS with modules for PrestaShop etc., with which online and e-commerce companies can be immediately charged with cryptocurrencies. In a few seconds you have your money with low commissions and extreme security. Our companies have not received a single fraudulent transaction today. With our exchange you can buy and sell cryptocurrencies instantly by bank transfer or credit card. We also allow payments in physical stores like Zara, Corte Ingles, Repsol, etc. with a card that exchanges cryptocurrencies for euros.
FQ: It was the third cut in bitcoin recently. Do you think this fact will affect Bitcoin’s price?
HF: Obviously, I think so. To understand a little what happens to the halving, we will explain that “it is a half bitcoin reduction”. These Bitcoin are the reward that miners receive every 10 minutes free of charge for network security and the recording of all Bitcoin blockchain transactions. Up until May 12, it was 12.5 bitcoins, now it is 6.25.
The first half was in 2012 and the Bitcoin price was $ 12.5. Approximately 125 days later, the price was $ 127. In the 2016 halving, the price was $ 620 and 125 days later, the price was $ 745. In the last halving of May 12, 2020, the price was $ 8,600. Dollars, and today it is at USD 9,800.
CF: Has the Covid 19 pandemic affected interest in cryptocurrencies in any way?
HF: Our Eurocoinpay platform grew by 30% in two months. This may be because people have surfed the Internet more. The possible contagion of Covid-19 through physical money also affects people trying to make payments in other ways. And when we analyze Bitcoin’s behavior regarding financial assets, we see that they have dropped 35% while cryptocurrencies have appreciated 77%. It is possible that these reasons are part of the interest generated.
CF: Will the world change after Covid-19?
HF: I think honestly and a lot. From my point of view, in my opinion, we shouldn’t educate our children to be super rich, but educate them to be happy, and when they grow up, they will not only know the value of things for their price.
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