XRP Not A Security and Bitcoin (BTC) Whales Will ‘Die Out’, Says Crypto Expert
Ethereum World News had the privilege of Interviewing BitcoinIRA’s Chief Operating Officer, Chris Kline. Mr. Kline shared a lot of insights into the current events affecting the cryptocurrency industry.
The interview touched on issues such as a possible market recovery; status of Bitcoin (BTC) whales; SEC regulatory concerns; XRP being declared a security; the recent hacks; and the ‘Feds’ issuing their own currency.
The full interview was as follows:
Q: Why are the cryptocurrency markets bound to bounce back?
A: I believe that the crypto markets are bound to bounce back for a number of reasons. Firstly, we are seeing an increased amount of institutional interest, from Goldman Sachs opening up a Bitcoin trading operation to Nasdaq enabling cryptocurrency exchange Gemini to leverage its SMARTS Market Surveillance Technology. Secondly, the SEC’s recent statement about Bitcoin and Ether not being securities is clearing up some of the regulatory uncertainty in the space that many experts in the space, including myself, believe has been contributing to market stagnation. And finally, we are already seeing decentralized technology change the world and the way data is stored and processed…with many top companies such as Amazon and Facebook dedicating an enormous amount of money and resources to better understand and leverage blockchain technology.
Q: What is the status of Bitcoin whales in the industry?
A: Whales are the big players, where the ocean is a metaphor for the cryptocurrency ecosystem. While they currently have the potential to impact investments, over the long term and as the crypto market matures, I believe their ability to impact the market will dwindle. First, the larger the cryptocurrency market gets, the less impact any individual whale may have on the market. Additionally, regulators and the DOJ are stepping in already to combat dangerous market manipulation, so there will be less incentive for whales to create waves.
Q: What does the recent SEC announcement mean for the crypto space?
A: I believe that the recent SEC announcement is positive news for the crypto space for a couple reasons. Firstly, as I mentioned before, I believe it clears up some of the regulatory uncertainty that experts such as Tom Lee and myself believe is contributing to price stagnation. Secondly, I believe that the SEC’s statement demonstrates an ongoing cooperative, respectful, and productive rapport between regulators and the decentralized technology sector in working together to create a compliant, present-day financial landscape.
Q: Is Ripple a security?
A: In my opinion, it is not. Explaining why bitcoin and ether are not securities, William Hinman said: “Based on my understanding of the present state of ether, the Ethereum network, and its decentralized structure, current offers and sales of ether are not securities transactions.” Similarly, Ripple, while arguably more centralized than other cryptocurrencies, is actively moving forward in its decentralization strategy. The platform has announced plans to diversify validators for XRP ledger as well as add attested validators to unique node lists.
Q: Will hacks accelerate crypto regulation?
A: I believe hacks accelerate the need for progress and change. That’s what we saw this year, with the SEC requiring all exchanges to register as securities, as well as different technology platforms shutting down crypto advertising in an attempt to weed out the bad actors. We also have companies like Chainalysis which are focused on helping Bitcoin-based businesses detect fraud.
Q: Will the feds issue their own cryptocurrency?
A: While there has been talk of other countries like China and Israel digitizing their fiat currencies, I don’t have any reason to believe the US Fed will digitize the US dollar anytime soon.