Bitcoin, the virtual currency used to buy and sell goods and services online, is still in its infancy, and that’s not necessarily a bad thing.
In fact, Bitcoin’s meteoric rise can serve as a model for businesses looking to launch their own bitcoin-related businesses.
In a recent interview with Vice News, Bitcoin co-founder Mike Hearn said that, like any other online currency, the cryptocurrency needs a “trendsetter” to help it gain mainstream acceptance and thrive.
“If you look at the history of the internet, it was like a new technology that people had to get on board with,” Hearn told Vice News.
“And so I think the thing that makes it unique is that it’s very new, and it’s not a platform that’s been around forever.”
Hearn, who co-founded Bitcoin-focused venture firm CoinLab in 2010, believes that the Bitcoin ecosystem is the perfect incubator for new businesses that want to establish themselves.
“I think that bitcoin is going to be a great incubator,” he said.
“The key is that you’re going to need a trendsetter.”
Hearns said that bitcoin’s growth is not a product of a lack of interest from investors or entrepreneurs, but rather a product “of a lack in the tech sector.”
This lack of tech sector innovation in Bitcoin has left the cryptocurrency’s growth in the hands of entrepreneurs, who are free to “play” with the currency’s code, Hearns explained.
“It’s a very decentralized network,” Hearns noted.
“There are a lot of people that are running Bitcoin, but they’re not doing the right things.
So I think that’s why you see some of these businesses get funded, because there’s a lot that’s missing from the tech community.
They haven’t gotten a lot done, and then they get invested in by these people who have the most technology, and you see that play out in the market.”
Bitcoin can be purchased on exchanges and other venues that allow users to buy bitcoins for cash, or they can be exchanged for fiat currency, a form of payment that is not backed by a central authority.
The process of buying and selling bitcoins has become so popular that the number of transactions in the Bitcoin market reached 1.5 trillion in the first five months of 2017.
Hearns believes that it is the technology of the digital currency that has attracted a large number of companies to the space.
“Bitcoin is very open source,” he explained.
Bitcoin is open source and decentralized.
You can get it in a lot more places than just banks, and there are a ton of companies and organizations that have built their own versions of the protocol.
There’s a ton more potential for bitcoin to take off.
“People are interested in getting into bitcoin, and if you look into the history, people have been buying and exchanging for cash for decades,” Hearne said.
Bitcoin, which is a decentralized cryptocurrency, has gained traction over the last few years, especially in the wake of the U.S. Federal Reserve’s decision to hike interest rates.
But while many Bitcoin enthusiasts are quick to praise Hearns for taking the cryptocurrency to the next level, others are skeptical.
“This is a currency that hasn’t been around for a long time, and in my view, it’s probably the biggest scam in history,” Peter Schiff, an analyst at J.P. Morgan Chase and a former adviser to the U: Securities and Exchange Commission, told Vice.
“We’ve never seen anything like it.”
Schiff also pointed out that bitcoin prices fluctuate wildly, and warned that the cryptocurrency will not be able to take over the U.: Securities and Futures Trading Commission.
“At some point, it has to be the big banks,” he added.
“That’s the biggest problem with it right now.”
Schiff is also a fan of Hearns, but cautioned that bitcoin could be a bubble.
“When people start talking about bitcoin as a bubble, they’re talking about Bitcoin itself, not the underlying technology,” Schiff said.
According to Schiff, bitcoin could burst and the price of the cryptocurrency could plummet, which would result in a huge loss for investors.
“They’re not going to get rich on bitcoin,” Schiff argued.
“In a way, they will get burned.”
The biggest problem for investors in the cryptocurrency space, according to Schiff is that Bitcoin’s value is tied to a currency, which makes it difficult for investors to understand the cryptocurrency.
Hearn also believes that Bitcoin has a lot to offer, but that the market is “overhyped.”
“If people think that it has a future, they are going to go after it,” he told Vice, explaining that the current bitcoin price has become “too high.”
Hearnt, meanwhile, said that the crypto market will be around for many years.
“Right now, there’s not enough interest in it, and the technology is so immature that the entire system is broken,” he stressed