Bitcoin’s prices have been rising fast. It has led to many speculations about the world’s first working cryptocurrency.
There have been many predictions about Bitcoin. A few of these predictions will come to pass.
E-Crypto news reached out to Lukas Enzersdorfer-Konrad on the matter.
Lukas Enzersdorfer-Konrad is the Chief Operating Officer at Bitpanda, a leading investment platform based in Vienna, Austria. At Bitpanda, he is in charge of a large chunk of the company, from business operations, growth, product development, and customer success.
He bridges the gap between the modern and the traditional financial world by connecting digital assets with fiat currencies.
Lukas has a demonstrated history of working in the financial services industry and firsthand banking experience combined with in-depth knowledge of digital assets, leading digital roadmaps, and platform strategies from conception to launch across retail and corporate product offerings.
Here is what he had to say.
- How did you get into cryptocurrencies?
The premise of a global currency that sees no borders was very tempting back in the days. Before joining Bitpanda in 2018, I was working in the financial services industry and thus, already had a huge interest in digital assets.
Bitpanda was founded in 2014 in Austria with the vision to make buying bitcoin and other cryptocurrencies as easy and secure as possible. I got into crypto in early 2016 and bought my first Bitcoin on Bitpanda.
It was a huge challenge to buy Bitcoin with a lot of uncertainties, cost and risk involved! It’s incredible to see how the industry developed.
2. What do you think is responsible for Bitcoin’s exponential price rise?
It is a mix of things. I do not think there is one sole thing responsible for the rise of Bitcoin. Investor interest in the chain is one of the things that created the commodity feeling around crypto in general and obviously Bitcoin.
That retail interest is important and brings these things into the mainstream. There was a decent amount of whale activity that played a role in some way also. There is no definitive answer to this.
3. In your opinion, do you think Bitcoin prices will experience sharp reversals just like in 2017? Please tell us the reasons for your answer.
I can’t predict the future, but what we are seeing now is a much healthier growth of the Bitpanda price than in 2017.
Also, the infrastructure is a lot better, it’s much easier to easily buy Bitcoin nowadays and we are also seeing more demand from the institutional side.
The latter is something that was not the case from the 2017 bullrun, which was mostly fueled by retail investor hype.
4. Do you think institutional investors are the new whales? Please tell us the reasons for your answer.
Yes, definitely. What we are seeing is a much more matured crypto space. Institutional investors carry more weight than they used to.
In 2017 Bitcoin was a risky asset for early adopters, three years later the digital gold narrative is slowly but steadily catching on.
Holdin BTC in your portfolio is becoming more and more accepted, bigger hedge funds and investors are openly saying that they own bitcoin.
5. What are your thoughts on the decentralized finance (DeFi) space?
As the name “Decentralised Finance” implies, it’s pretty broad but the most important thing you have to know is that most projects in this space try to recreate financial services in a decentralised manner.
Think earning interest, getting loans, trading synthetic assets and so on without relying on any third-party or intermediary. Instead, you put your trust in computer code, or more precisely, in smart contracts running on, mostly, the Ethereum blockchain.
At Bitpanda, our goal is to give our users access to the latest trending assets with high demand. Therefore, we have identified the most popular DeFi assets, and integrated them to our platform.
6. Do you think that central bank digital currencies (CBDCs) will work? Please tell us the reasons for your answer.
The reason it is generally difficult to talk about CBDCs is that it is very different from crypto in the sense that crypto is decentralized and therefore has a different blueprint than a bank digital currency, which would have to be centralized, which regular banks are simply in nature.
Digital currencies have the potential to work and be incredibly useful, especially in times like these where cash payments have rapidly decreased due to an unprecedented pandemic.
The right leadership needs to be involved and also a bit of a cultural shift. Let’s see how that goes in the future.
7. How will Bitcoin’s price rise affect the Altcoin space?
What can be noticed is that several different altcoins fare differently next to Bitcoin. Some do better than others and there are many aspects that go into that.
It is clear that Bitcoin holds a lot of weight and influence within the crypto scene. Its success has certainly opened the door to many possibilities within the space and influences it.
As the saying goes, “When in Rome, do as the Romans do.” The competition shows that many altcoins try to follow the lead. How it pans out is certainly a good question and something worth keeping an eye out for.
8. Do you think a direct competitor to Bitcoin will emerge in the future?
Crypto is incredibly competitive and is an up-and-coming industry going mainstream. There is no doubt that many different players will come into the game and do well.
However, Bitcoin has a first-mover advantage, there is a strong network-effect and it’s a great brand. I think Bitcoin is here to stay and will most likely stay the dominant crypto, but competition will definitely not stop to pop up.
9. What are you currently doing at Bitpanda? Any secrets you would like to spill to our readers exclusively?
Bitpanda enables anyone to invest their money safely and quickly. By offering services like 24/7 trading, real-time settlement, savings plans and cross-platform compatibility, Bitpanda has shown a deep understanding of the customer base as well as traditional pain points.
We are focusing on becoming the leading neobroker. That means we will cover all types of assets classes and give everyone access to investing.
Our latest product launch, the Bitpanda Crypto Index, is a great example of the direction we are heading.
The Index is a game changer in crypto being the first real crypto index which breaks the barriers in crypto trading. Beside that, news is just around the corner – I am able to share more insights soon.
10. If you had a crystal ball and you could see into the future what will the future hold for the crypto space in the next decade?
Digital assets are becoming more and more mainstream. Usability is getting better and better, access to those assets will be very easy and straight-forward. In addition, 2020 has shown that crypto is here to stay.
There has been a huge inflow of institutional capital as well as record numbers of new retail customers adopting cryptocurrencies. Bitcoin will be a must-have asset in every investor’s – small or big – portfolio in 2025.
On top of this we are seeing much more regulation in the space, which is not only needed but will also help boost its credibility.