An interview from Alyona Karpinskaya
Interview: Norbert Goffa
Q: Right now everyone is talking about the skyrocketing price of Bitcoin. Did you expect Bitcoin to hit its all-time high by the end of 2020?
A: To be honest, I haven’t. I expected it to intensify further by the end of the year, but no one suspected it would happen at this rate. We analyze the forecasts a lot about the possible change in Bitcoin price with our team, but this pace was really surprising. For my part, I refrain from forecasting and do not consider the theories, which forecast a forecast of one hundred thousand dollars within a relatively short time interval, realistic. I think it’s not about predicting exact prices, it’s about predicting trends. I think growing too fast has its downsides. Just look at the current market.
Since everything is defined by Bitcoin, it is necessary to review the negative effects caused by sharp price increases. Of course, who wouldn’t be happy if their Bitcoin was always worth more? Of course, it is in everyone’s interest, but at the same time, other effects should be taken into account as Bitcoin has an unrestricted dominance in the cryptocurrency market, and because of this, a strong Bitcoin cannot serve the other participants in the cryptocurrency market. The ones who are sure to be very satisfied are the miners as their fees change for the better with this price.
Q: You referred to altcoins in the previous question. Could you elaborate on this to explain how you see market trends?
A: Whenever Bitcoin gets stronger, any altcoins that can’t keep up get weaker compared to Bitcoin. Whenever Bitcoin weakens, the altcoins usually lose a lot more of their value, as they are already behind Bitcoin. If we look at the all-time high price of Ripple or Ethereum as a specific example, we see that they are very far from the prices they had previously reached. Bitcoin has already exceeded that price, however, so we can see that everyone has suffered a heavy loss to Bitcoin.
Of course, this doesn’t mean that an altcoin – especially the new ones, which are mostly DeFi projects – can’t make a bigger profit than Bitcoin. In my example, I was referring to the veterans who happened to come into the public eye as alternatives to Bitcoin. I could have laughed at these visions years ago. Not only can Bitcoin not be knocked over, it is almost impossible to get close to. I think this is a good thing and an advantage in the long run as there is no need to come up with alternatives for the same purpose that we use Bitcoin for. It is more important that a project presents such solutions that Bitcoin cannot count on. From this point of view, Ethereum is a role model as it offers such a solution that Bitcoin is not capable of. Personally, I think that competing with Ethereum is more of a challenge for the Altcoins than competing with Bitcoin. Because it’s like challenging dolphins in an ocean swimming competition.
Q: You mentioned Ethereum as the epitome of the cryptocurrency market. How do you think Ethereum 2.0 will affect the price?
A: If I could just answer, I would say that it isn’t a very influential fact that Ethereum creates such a smart network of contracts that investors’ ethers are associated with. I don’t want to predict anything, but the stake is somewhere near the inflation level. This is like bank interest, but it is still not the same. In my opinion, Ethereum’s strategy is not that good in the long run as these solutions also make Ethereum less valuable. This, of course, is not clearly black or white. There could be a price increase effect from Ethereum 2.0, but I see a market that works differently where we cannot say that such an upgrade will bring investors this and that profit. There are so many unpredictable factors that these predictions don’t matter besides marketing value.
Let’s assume that Bitcoin drops back to 20,000 tomorrow. Is it good or bad? Of course, it’s very bad for those who have bought in the past few days. On the contrary, for those who have been consciously building their Bitcoin portfolio for years, it is certainly good, since a good trader makes his money with movements and not just with continuously increasing prices. This is exactly why DeFi projects are popular, as they can be used to make a lot of money. Let’s just check the current Year.Finance period.
Q: You referred to DeFi projects as easy ways to win. What is your opinion on how long the craze for DeFi will last and what will the end be?
A: At the moment, attention has been drawn to DeFi projects and everyone is looking at Bitcoin. I would add that it is right to be so. What happened to Bitcoin is way above expectations for 2020. And that answers your question as to whether DeFi will continue on its chosen path. DeFi has a future as DeFi stands for the decentralization of the cryptocurrency market. You would think that having a centralized exchange has many advantages as it secures your clients’ money. Yes, and it’s also an exchange where the customer’s money is not paid out. Unfortunately we have a great deal of experience with such cases. Exchanges can go away with users’ money! Of course, one could say that one has to use exchanges with a good reputation. Of course there is a way, but the question is the price. I bet the success of freshly arriving tokens lies in the fact that at the time of launch, one or two TOP exchanges are already supporting the project. If I can conspire a little, I would say that the exchanges also own these projects. If a token is on one of the TOP exchanges, this is already half of the success. I would also like to ask: How decentralized is the cryptocurrency market really?
Q: Given what you’ve just said, we can assume that creating an ERC20 project is easier and cheaper than building a coin on your own technical innovations. Did you want to point this out earlier?
A: Yes, that’s exactly what I wanted to refer to. You understand it. Of course, you can argue about it, but it’s not worth it. The cryptocurrency market prefers the token-based approach to trading over the individual coin-based approach. I don’t mean it’s a wrong approach as from a speculative standpoint, one token might be enough for success. If I generate 1 million tokens, which is the maximum of what my project has to offer, I could easily give 250,000 to an exchange to start the project. I referred to that in the previous question.
This does not mean that your own coin, based on a unique technology, is not valuable or more valuable than that of token-based projects, the purpose of which is limited to speculative trading. Both approaches have advantages and disadvantages. Because of this, I think that while exchange trading is more effective than token-based, it is nowhere near enough in real world conditions. Because of this, I think a unique technology will be more rewarding in the long run.
Q: Let’s talk a little about ILCOIN. You created the RIFT log about a year ago. What has happened in the ILCOIN Blockchain Project since then?
A: We have changed in several ways. Although we won the race to increase the block size, I can say we were the only ones to cross the finish line. We didn’t expect that either. That’s not good, definitely not good, because if you are the only participant in a race, then it is no longer a race. In a word, all the attention has been drawn to DeFi projects by increasing the block size and chain-based data storage. I admit we did not expect this, but I think we are not alone with this problem. We have to see where we outdid ourselves and what caused the competition to fail. Why would you come out with a 2 GB block if there was someone creating a 5 GB block? You can only give the winner one free promotion at most. At the same time, I think the day will come when the RIFT minutes will be the order of the day.
Then add COVID19 which also contradicted our plans. It can be said that 2020 was not for sure our year. Many good things were happening at the same time, and these advances will have their market effects in 2021. Suffice it to mention our VR game as we have serious plans for the future as Age of ILCOIN: Retribution will be the most important element of the DCB. In addition, we have plans for ILCOIN to be part of DeFi projects as we believe in the benefits of expanding the decentralized exchanges. All in all, a lot is happening in the background and I am sure this will produce results.
Q: If I understand correctly, would you like to say that the price of ILCOIN is expected to go up in the next year? If we look at this year, your price has fallen sharply. Is there a special reason for this or is it just how the market has gone for you?
A: It’s a tough question, and I was hoping you wouldn’t ask it. But of course everyone is concerned about this. I think there is no project that likes to talk about falling prices. I want to add that we are not alone as we are proportionally in a better position than some of the top altcoins. But I don’t want to hide behind others, that’s why we lost a lot this year too. At the same time, I don’t see this as such a big problem. All cryptocurrencies went through the same process. It took Bitcoin two years to find its way back to its former self, and it has even surpassed that. The fact that we’ve lost a lot of our price doesn’t mean we don’t have potential. I think that’s precisely why we have a good chance of advancing in the future. Of course we need new business partners and reforms are necessary. We are working on it and I am happy to say that our prospects are very favorable.
It is natural to ask why our price has gone down. There are several reasons for this that I don’t want to talk about as it is very speculative. It is certain that with the 5GB block we created more enemies than friends. We ended our cooperation with some of our partners and of course the interaction with the exchange was not always a pleasure. We learned a lot from these cases and that is why I talked about reforms. ILCOIN is a project with great potential as we have such a development team behind us that has already proven itself. I am sure that we will emerge victorious from the blockchain technology competition in the long term. I don’t make promises that are not down to earth. I have never made factual statements about the price of Bitcoin. And that’s not a coincidence, I leave guesswork to others. I am interested in trends and tendencies. This is how I see ICOIN. I don’t mean a specific moment because you can’t draw long-term conclusions from it. I believe in trends, tendencies and innovations. That’s why I represent ILCOIN.
More information about ILCoin can be found at: https://www.ILCoincrypto.com/
About Alyona Karpinskaya:
Founder of the PR-Blockchain agency, technical writer, journalist and publicist.