Pushpendra Singh – the founding partner of wealth technology platform Centricity – has nothing against bitcoin and its altcoin cousins, but in a recent interview, he commented that traders and investors really need to be fully aware of the volatility and other problems that plague them.
What Does Singh Think of Crypto?
He says bitcoin and many other forms of crypto are likely to remain volatile and vulnerable to dramatic price swings that can appear out of nowhere. Singh commented that there are three main tactics one can utilize when it comes to finding the right digital asset investing scheme. He said:
Cognizance with respect to risks involved in the asset class/product and regulatory body governing the asset class; awareness with respect to the payment mechanism to buy the digital asset and possibility of cyber fraud; legal recourse available in case of criminal violations by the product manufacturer.
Discussing blockchain technology, Singh said that while the technology can potentially keep funds and important data safe from prying eyes, the world of growing crypto apps is troublesome, and there are only a few out there that he thinks traders can truly trust. He mentioned:
Blockchain stores data in blocks linked together via cryptography and chained together chronologically. Crypto uses blockchain as a transparent and permanent ledger to record transactions. No single user has control over the underlying blockchain technology, especially in [the] case of crypto and is therefore decentralized. Data is immutable and irreversible, which means ownership records are permanent and viewable to all users.
When it comes to trading crypto, he provides three tips to his listeners and says they need to be fully aware of “underlying volatility and wild price fluctuations.” He also stated they need to familiarize themselves with the “low liquidity” and “counterparty risks” involved, and he mentioned that traders need to know about “possible scams and frauds” due to the lack of “regulation and legal recourse.”
This continues to be a major issue in the crypto space, with half the industry being all for crypto regulation as a means of protecting users, while others claim regulation goes against everything crypto stands for, and thus people should be left alone. They say there is no room for third parties or prying eyes in the world of digital assets.
Blockchain Has Its Problems
Concluding his interview, Singh said that Singapore is by far the top country right now when it comes to crypto innovation, and he said that there are various disadvantages to blockchain, a big one being the upfront costs associated with it.
He also said that the technology is not “immune to software bugs and glitches,” and said that the misuse of quantum computing technology “could be potentially used to rewrite certain bits of the blockchain or alter financial records.”
This post first appeared on: Live Bitcoin News