Algorand Basis insights on the longer term and fundamentals of cryptocurrencies – SlateCast #45

The cryptocurrency trade has skilled a big downturn in current months, resulting in issues about the way forward for the trade. Nevertheless, John Woods, the CTO of the Algorand basis, stays optimistic about the way forward for cryptocurrencies.

In keeping with Woods, the current collapse of centralized exchanges has broken shopper confidence and the value within the markets, nevertheless it hasn’t modified the basics of cryptocurrencies. He sees these decentralized, self-sovereign, internet-native tokens of credit score as a brand new sort of world banking system that’s programmable and supplies infrastructure for everybody. Whereas he acknowledges that it might take a while for the market to get better, as occurred with the worldwide monetary disaster and the dot-com bubble, he believes the trade will ultimately flourish.

Whereas the market capitalization of the cryptocurrency trade has fallen considerably, Woods factors out that the quantity of labor being carried out to enhance the expertise and infrastructure of cryptocurrencies has not slowed down. Actually, he notes that the builders within the trade, these targeted on expertise and infrastructure, aren’t involved with worth or market circumstances however fairly with constructing and bettering the ecosystem.

One space the place Woods sees potential for development is within the adoption of cryptocurrencies by establishments. He notes that whereas retail traders have been the primary customers of cryptocurrencies up to now, he believes that institutional traders will ultimately turn out to be extra concerned as they perceive the expertise and see the potential advantages of utilizing cryptocurrencies.

Total, Woods is optimistic about the way forward for the cryptocurrency trade regardless of the current downturn. He believes that the underlying expertise and beliefs of cryptocurrencies, as decentralized, self-sovereign, internet-native tokens of credit score, is strong and can ultimately result in a restoration and flourishing of the trade. Whereas it might take a while for this to occur, he sees the work being carried out by builders within the trade as a optimistic signal for the longer term.