Crypto report I convert with Juanen Crypto about the importance of bitcoin and blockchain technology in the current economic and financial system and what, in his opinion, are the factors that affect its value.
Juan Pablo is an Industrial Engineer with an MBA from London Business School and more than 11 years of experience in investment banking, capital markets, entrepreneurship and providing advice related to blockchain and crypto assets.
Since 2017 he has been teaching and sharing his passion for Bitcoin, blockchain and the cryptocurrency industry at universities, corporate workshops, events, and through his YouTube channel “Juan en Cripto” and the podcast “Tune into the Block”.
He is the author of the course Fundamentals of Blockchain technology carried out with the Javeriana University and edX, with more than 10,000 students registered in two editions.
He currently advises entrepreneurs and investors in cryptocurrencies, is the director of the Government Blockchain Association in Madrid and the presenter of Bit2me Crypto News. "
1) What is your opinion of the ECB's statement regarding a possible regulation of bitcoin?
To give a bit of context, Christine Lagarde, president of the European Central Bank, recently came out to make public statements saying that bitcoin was a highly speculative asset and that it was used to launder money.
Regarding the first point, I agree that bitcoin is a speculative asset, as are stocks, gold and the vast majority of financial products that exist in the world.
Nobody buys one of these assets expecting the price to fall and nobody knows with 100% certainty what the price behavior of these assets will be in the future. All those who buy any of these assets are because in a certain way they are speculating that its price is going to rise or at least it is going to stay.
Regarding the second point, according to the most recent report by Chainalysis, a company specialized in blockchain analysis, only 0.34% of cryptocurrency transactions are related to illegal activities.
The truth, even if Mrs. Lagarde wants to tell us otherwise, is that fiat money printed by central banks is the preferred medium of exchange for criminals and the main tool for money laundering globally.
2) What is the reason for the record of the new historical price that Ethereum reached on January 19, 2021?
ETH's new all-time high is due to market forces. Clearly, there is a greater interest in this cryptocurrency and more and more people want to invest and experiment with this asset.
The recent launch of ETH 2.0 Phase 0 and the rise of the DeFi ecosystem over the past year are some of the reasons why interest in Ethereum was piqued.
3) How do you see the bitcoin price forecast for the next few weeks?
Unfortunately I have no idea. I stopped trading in 2009 when I started working in investment banking and from that moment I ignored short-term market movements. I consider myself more of an investor with a long-term vision and that is why I decided to dedicate my career to learning and teaching about Bitcoin and the cryptocurrency industry.
4) In your opinion, what is the factor that most influences the rise in bitcoin?
Like all assets, the price of bitcoin is determined by market forces.
In the case of bitcoin, on the one hand, the supply of new BTCs is limited by code and the first thing you learn when you start studying about Bitcoin is that there will never be more than 21 million BTC. At this time it is evident that there are more and more people and institutions studying about Bitcoin and understanding that the supply of BTC is limited.
On the other hand, the great powers of the world are betting on having an expansionary monetary policy and have decided to print money in quantities never seen before to try to reactivate their economies.
There is currently a lot of liquidity in the market and practically all investors are looking for what to do with their money.
Considering the above, the rise in the price of bitcoin can be attributed to a fixed and limited supply of BTC combined with a growing demand from new investors who are so far only beginning to discover the power of Bitcoin.
5) What are stablecoins and how do you define decentralized finance?
Unlike bitcoin, whose price is highly volatile compared to fiat currencies, stablecoins are cryptocurrencies whose price is indexed to the price of other assets, mainly the US dollar. In other words, stablecoins are cryptocurrencies whose price remains relatively stable relative to the price of another asset.
In this short video I explain what stablecoins are and their main business model:
(embed) https://www.youtube.com/watch?v=9GKM7MpvbcE (/ embed)