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Arrington XRP Capital partner states that 50% of his net worth is in cryptocurrency

Anvita M V

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Arrington XRP Capital partner states that 50% of his net worth is in cryptocurrency
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Michael Arrington, Partner at Arrington XRP Capital, recently appeared in an interview with Beyond Blocks at the Seoul Summit 2018, wherein in he spoke about the cryptocurrency market. While speaking about the technology, he also mentioned the advantages of XRP and why he chose XRP for his hedge fund project.

Speaking about the current state of the cryptocurrency market, Arrington stated that there will be “ups and downs.” He went on to say that he had a good idea where the market was going in 10 years, and he wanted to be in the middle of that. According to Arrington, the current market status presented itself as a buying opportunity. It was not the time to “panic,” he added. He went on to say:

“I’m old enough to have gone through some pretty major market crashes and I’ve seen that that is the time to buy.”

Michael revealed that he had been putting money in the industry. He stated that in December last year, around 20% of his net worth was in cryptocurrencies. He also stated that he had been investing a lot of money into cryptocurrency this year, and at present, 50% of his net worth was in cryptocurrency.

He also spoke about the need for cryptocurrencies. In Arrington’s opinion, millennials knew nothing about it. He went on to say that cryptocurrencies were good for people living in places like Venezuela and Argentina. As these countries that did not enjoy having a stable currency, like the United States, Arrington stated it was almost a matter of life and death in certain cases.

He moved on further to discuss his views on Venture Capitalists [VCs]. Arrington said that it was sometimes difficult to raise money through venture capitalists. According to him, there were few “gate-keepers” who were always looking for a reason to say no. He said it became increasingly difficult for a woman or a minority in the U.S to raise funds through them. However, he stated that such a trend was beginning to change.

Arrington said that the crypto-industry was a complete “reboot” of this system and provided a freedom where anybody in the world can raise money without approaching anyone in the Silicon Valley.

On being asked his view on Venture Capitalists entering the cryptocurrency space, he stated that VCs conducted mass public sales that brought lots of small buyers for the coins, which was good for the ecosystem. On the contrary,  he stated it started getting difficult for funds to get allocation due to the regulators shutting down such activities largely.

Arrington went on to say:

“So that means that people raising money, have to go to people like us that are considered accredited or right investors in the US, I am a qualified investor which is an even higher bar because there’s less liability from taking our money and so it’s been great for us, but I think it’s terrible for the industry.”

In his opinion, the regulators were trying to be paternalistic and protect people from the risks involved. Furthermore, he stated that there was no need for doing so. He argued that it was “good-natured evilness.” He concluded by stating that when the ETF’s came into place anybody who knew how to buy a stock on any normal exchange can invest in cryptocurrencies.



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Anvita Mysore Vadiraj is a full-time content writer at AMBCrypto. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies.

Ripple

Ripple’s David Schwartz: Distributed ledger is important as everyone on it enforces the rules

Akash Anand

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Ripple's David Schwartz: The distributed ledger is important as everyone on it enforces the rules
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The cryptocurrency market has been buckling under the weight of the bear for some time now which has forced a lot of popular individuals to speak about the crash as well as assure users to HODL. In a recent talk with the Internet History Podcast, David Schwartz, the Chief Technology Officer of Ripple spoke about the early days of cryptocurrencies as well as the formation of Ripple and XRP.

Schwartz, who has been called ‘Ripple’s trillion dollar man’ spoke about his initial stint with cryptography and what directed him onto the path of digital assets. He stated that he had worked on problems plaguing the internet with the key focus being on security and crowd storage.

According to him, the pressing issue was keeping data in a cloud and also keeping them secure, a concept unheard of at that time. In his words:

“Multiplying the value of information was key. We all had technology focused on transferring data but nothing related to value as such.”

Schwartz added that Ripple and XRP’s entry into the market all began when public encryption was made available to the masses. He stated that in the early days everyone was just using symmetric encryption that was not suitable for commerce. With the advent of public encryption, people in technology realized that money was the only commodity that was left to be transferred quickly and safely.

The Ripple official also spoke about early technologies that paved the way for Bitcoin to catch the public’s eye. He spoke about how concepts like RipplePay and Hash Cash laid the foundation for Ripple and Bitcoin to build upon. The CTO stated that post the arrival of Satoshi Nakamoto, users were given an ecosystem that does not require a trusted third party. According to him:

“ Unlike traditional systems, the absence of a trusted party makes it easier and more secure for data to move around. The system was built on the idea that everybody in the ecosystem enforces the rules and it’s not just one governing body.”

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Bitcoin

Bitcoin’s divisibility and transportability make it much more flexible than digital gold

Priya

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Bitcoin's divisibility and transportability make it much more flexible than digital gold
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Andreas Antonopoulos, the author of Mastering Bitcoin and a Bitcoin proponent, spoke about Bitcoin as a digital currency and whether it would be limited to being just that, in his latest Q&A session on Youtube.

The author was asked about the possibility of Bitcoin becoming the world’s reserve currency, a digital gold and whether other cryptocurrencies would be used as a day-to-day currency. To which, he said:

“I don’t know. I think it would surprise me, actually, if Bitcoin could only fit into the niche of ‘digital gold.’ Bitcoin has characteristics of divisibility and transportability that make it… much more flexible than digital gold.”

Antonopoulos stated that gold is not a good medium of exchanges, because of the difficulty related to verifying whether it is real. He also stated that the store of value is “heavy to carry”, adding that the more one tries to make it fungible and divides it into smaller pieces, the harder it gets to verify its authenticity. According to him, verifying gold in larger amounts, which are stamped by reputable third parties, is easier.

“Then the cost of storing and securing gold is so high that it is better done in a custodial manner, where you put it in a vault and have professionals guarding it. You [are left] with a little paper certificate [of ownership], which have other problems like hypothecation. [All of this] makes it difficult to use [gold] directly as a medium of exchange.”

This was followed by the author remarking that these problems are not prevalent in Bitcoin, even though there is “greater complexity” when it comes to securing the cryptocurrency. He went on to say that this would cause some pressure towards third-party custodians, however, if that pressure is going to be lesser in comparison to the current system, it would still be a “more decentralized future”.

“The ability to transport bitcoin very quickly, in very small amounts [or very large amounts], [including] with second-layer networks that are even faster [and smaller] at the level of microtransactions”

Moreover, the Bitcoin proponent thinks that Bitcoin could be a “very effective” medium of exchange and store of value, adding that the volatility would decrease through use and volume, wherein the currency would not be witnessing a major price fluctuation making it “less speculative in nature”.

“That doesn’t mean there won’t be other coins which [are used] for everyday currency. I think there will be [others]. I don’t think Bitcoin will be just digital gold. It may become a world reserve currency, but I think the concept of a unitary world reserve currency [would] no longer be relevant.”

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