Reddit co-founder compares Bitcoin to Countries Experiencing Economic Crisis
According to Alexis Ohanian, the co-founder of Reddit, Bitcoin is merely a store of value and stated that it is unstable, but stable only when compared to countries experiencing an economic crisis.
Earlier this year, Ohanian announced that he was stepping down from his duties at Reddit to contribute more time to Initialized Capital, a venture capital firm founded in 2011 with his partner Gary Tan. He said the following about his experience with Initialized Capital:
I’ve wanted for a long time to get back to early stage founders to being the ‘first check’ in Initialized. It’s a lot of fun, frankly. I get to come home and have really good dinner table conversations about the things I did at work, and it’s always [about] meeting new founders, learning about the future and then sometimes rolling up my sleeves.
According to a report from Yahoo Finance, Ohanian has bullish views on Bitcoin despite its volatility. According to him, it is a store of value with real traction. He stated that this is especially in countries that are undergoing economic crises such as Turkey or Venezuela. He stated,
According to Ohanian, an investor in the cryptocurrency exchange Coinbase, the instability of fiat money in countries with economic problems will create the way for cryptocurrencies like Bitcoin. He refers to the socio-political status of cryptocurrencies in countries like Turkey where citizens are losing faith in the fiat currency (Lira in this case) which consequently opens up an opportunity for cryptocurrencies.
As a store of value, there is some real traction (with Bitcoin) and actually as we’re seeing in countries like Turkey that are having significant economic crisis – where people are losing faith in the Turkish lira.We’re going to see money move over to bitcoin because as unstable as it is, it is actually a lot more stable for a lot of people than their own nations’ fiat currency. But right now, we’re still in the earliest, earliest stages.
Ohanian also states that he is happy about the developments cryptocurrency has made even though according to him it is in its ‘earliest stages’. However, he believes that it will be a while before it goes mainstream. He does see Coinbase and other crypto exchanges as a base for growth of the ecosystem.
No matter what the currency prices are doing, seeing more and more people creating accounts shows more and more adoption, and their end game is to be this interface between people, their fiat money and crypto.
The first 8 months of the year have been rough for the cryptocurrency market. The market has been highly volatile, with many cryptocurrencies including Bitcoin dipping to their lowest levels since their high point. At the end of last year, Bitcoin was touching $20,000 and Ethereum was priced around $1400. However, at the time of writing this article, the numbers are way lower. Bitcoin is at $7,107 and Ethereum is at $295.
Despite this fall in prices and the associated volatility, the number of people opening crypto accounts is not decreasing. Ohanian said about this,
I just encourage people not to get too, too invested in the speculation around the day-to-day trading of the currencies.
Ohanian’s main focus is to continue building the infrastructure and build a Web 3.0 instead of merely focusing on the fluctuations.