BRUSSELS (FNI) - Givi Adeishvili, Economic Analyst of the NGO Society and Banks, told Front News International about cryptocurrency, which one can replace Bitcoin and how many people are involved into crypto economy in the post-Soviet countries, when Bitcoin rate will start to grow and what will happen to this crypto currency rate when it’s mining to become impossible.
According to analysts, currently the Bitcoin exchange rate movement almost completely repeats the Nasdaq Composite Index on the eve of and after 2000, but 15 times faster. Then the index rose by 278% in 519 days and peaked in March 2000. In turn, Bitcoin jumped 248% in just 35 days - down to a record high of $19,511 last December.
FNI: Which Soviet countries are in front of in adopting the laws for cryptocurrency?
GA: Unfortunately, there is no information which post-Soviet countries are going to adopt new laws, however there are countries which have source of cheap electricity and it could be used to construct mining farms as cheap electricity transforms mining to profitable business. In Georgia operates big mining farm owned by “Bitfury Group” and there are small producers also. We think that regulations and laws in post-Soviet countries will be followed after the EU or other developed countries will make some agreements concerning this sector.
FNI: How many people are involved into crypto economy in the post-Soviet countries?
GA: As “crypto currencies” belong more to shadow economy and there are no official statistics it is hard to estimate total number of people involved in the sector. However, market capitalization of existing “crypto currencies” varied from 300B to 800B USD during the last 3-4 months.
FNI: What is supply of crypto economy in the post-Soviet countries?
GA: There is lack of information
FNI: When Bitcoin rate is going to grow?
GA: As the price of Bitcoin or any other crypto currency isn’t backed by Central Banks they can be treated as an e-asset which are freely sold in the market with the price determined by buyers and sellers. While expectations about regulations and risks within the sector are changing daily it increases variance and hence the price is hard to predict. We have to mention that price could as easily go down as it increased during the last year. There are no caps and floors associated with one or another crypto currency price.
FNI: Bitcoin amount is limited. What will happen to this crypto currency rate when it’s mining to become impossible?
GA: Mining process is associated with supporting crypto currency transactions. Miners are awarded fees in the form of currency they support. This process could be also associated with paying fees to intermediary bank, however in that case financial intermediaries receive fiat currency like USD, EUR or GBP.
FNI: Which cryptocurrency can replace Bitcoin?
GA: Any crypto currency, which will establish higher trust, lower fees and other desirable specificities important to buyers, could over perform Bitcoin. It is hard to have positive expectations about the sector which is deregulated, includes high risks and serves shadow economy. However, technology created within the sector could play important role in the future.
Front News International
Front News International