Just lately, the founding father of BIKA had a In-depth One-on-One Dialog on the subject of Elevated volatility within the crypto market gives larger alternatives to revenue for each long- and short-term merchants.
“Monetary derivatives of cryptocurrencies have developed into being a really main part at this time as Blockchain is steadily gaining acceptance. Due to the large market and excessive volatility within the cryptocurrency area, we and different traders have a tonne of possibilities.”
A number of cryptocurrencies elevated in worth throughout 2020 and 2021, with the value of Bitcoin as a benchmark reaching as much as $65,000 per coin. This introduced consideration to the Blockchain market. In different phrases, if you happen to personal simply 15 bitcoins, you’ll be price $1,000,000 immediately. In an effort to alter the world, this has led to the creation of quite a few tasks and enterprises dedicated to advancing consensus improvement in blockchain expertise and crypto digital belongings.
Since its launch, BIKA has attracted 2 million registrations, making it one of many important exchanges.
Augustin, the founder and CEO of BIKA, in addition to the instigator of Silicon Valley Creation Capital and the BIKA New York World Blockchain, is most glad of getting chosen the correct course for development fairly than launching an alternate with a large consumer base. Numerous enterprise homeowners and traders shamefully left the market in 2022, a yr marked by excessive market volatility. The Blockchain trade witnessed the failure of numerous startups and traders, together with quite a few well-known tasks and buying and selling platforms that had been in operation for years. With its futures buying and selling, BIKA was in a position to develop its firm primarily based on 2 million customers. Augustin had the imaginative and prescient of “security first, consumer first, and repair with coronary heart and soul, making each effort to set a brand new benchmark for futures alternate” when he first based BIKA. He determined to pay attention extra of his efforts on perfecting the product and offering top-notch service. Together with his elite workforce on the entrance traces, Augustin continues to be working nonstop.
Augustin’s sturdy understanding of market developments has helped BIKA develop swiftly. Volatility isn’t at all times a nasty factor, as it may possibly often current entry factors from which traders would possibly take benefit, as Augustin at all times said.
Q1: The conclusion of the ETH 1.0 interval and the transition from POW to POS had been marked by the completion of the ETH 2.0 merge on September 15, 2022. The mining tools utilized by the earlier miners will quickly be was scrap, and the brand new miners are enthusiastic about Ether’s future. What are your ideas on ETH 2.0?
A: Really, there are a selection of views on this matter and the way the ETH 2.0 merger would possibly impression Ethereum’s improvement. To start out, it’s essential to know Ethereum’s current downside and ache level. Congestion and exorbitant prices had been issues up to now. Since Ethereum’s final goal is to develop right into a supercomputer, we should guarantee that each software operates successfully. If the first Ethernet community can’t be extensively used due to unreasonably excessive prices and visitors, Ethernet progress will probably be restricted. Consequently, with out a appreciable rise within the variety of functions, the 2 issues of Ethereum’s congestion and charges can’t be overcome. As soon as these points are resolved, extra DAPPs will probably be adopted and used, which is able to trigger a rise in each their quantity and their consumer base.
The ETH 2.0 merge fixes these issues by altering the brand new Blockchain’s basic parts to a proof-of-interest, fractional, and new beacon chain named “beacon chain.” This means that we’ll start to desert the huge, power-guzzling mining rigs in favor of the speedy, power-saving, and transaction-verification-free on-chain staking mining. The cost for every transaction is decreased in ETH 2.0, which impacts its price construction at POS.
With the assistance of the Ethereum replace, the larger Blockchain eco-system will profit from having the underlying public chain expertise in addition to new software situations and consensus assist.
Q2: Regardless that there will probably be bounces throughout that point, in style cryptocurrencies like BTC and ETH are falling, and lots of pessimists see this as the start of a bear market. Because the market has developed, Bitcoin has continued to fall beneath everybody’s expectations this yr, from $40,000 to $30,000 to round $20,000 now. How would you charge that?
A: The worth decline doesn’t point out that the digital forex is getting into a winter; fairly, it’s extra of an financial system self-adjustment. Like an adolescent affected by a chilly, the digital forex is creating however must be repeatedly worn out with the intention to create antibodies and grow to be stronger. It is very important recognise that the abrupt adjustments available in the market are additionally serving to Blockchain and digital belongings get larger consideration. Individuals can even sense extra values and enterprise logic on this sector if they’re now not restricted by worth.
Blockchain and cryptocurrency sectors are too inflated and ethereal for rule-breakers and people missing the talents required to outlive within the cutthroat market. The monetary disaster could also be serving to the sector advance by eliminating extra pointless, non-consensus ventures. In such a clear sector, the outbreak is anticipated.
Q3: One other usually held notion is that the Federal Reserve will increase rates of interest by greater than 75 foundation factors on the finish of September, which is able to result in the greenback strengthening, a lower within the inventory market, a decline within the worth of gold and collectibles, a dramatic decline within the worth of cryptocurrencies, and a serious exodus of traders from the market. What impression do you suppose the coverage could have on the belongings held in crypto?
A: Coverage formation is an enormous concern for us as enterprise homeowners and professionals. Over the previous two years, COVID-19 has affected the financial programs of the vast majority of nations, and the USA has additionally skilled inflation for a wide range of causes. As a way to battle inflation, the Federal Reserve could have to dramatically enhance rates of interest. The Fed’s coverage has an impression on each facet of the monetary world because the U.S. greenback is the dominant forex. Moreover, because of this impact, crypto belongings are beginning to play a much bigger position on the planet of economic investments, similar to the inventory market, gold, and so on. We now have a workforce of specialists working to shortly reply to conditions and make judgments by researching the results of great international insurance policies.
This fall: Traders in cryptocurrency belongings are extraordinarily pessimistic throughout a market downturn since their belongings are being harmed and most of them are fluctuating in worth to the acute, which places traders’ psychological well-being in danger. Based on the info, the common web return for bitcoin homeowners this yr is -60%. In your opinion, ought to traders do within the present market to minimize their losses and maybe even enhance their positive factors?
A: Futures buying and selling as monetary derivatives could also be the only option for traders when the market is weak and overly risky.
Futures buying and selling permits traders to guess towards the long run ups and downs of digital currencies with out having to own any bodily cash, maximizing funding income via futures leverage. As extra traders deal with market instability and the rising prices of investing in BTC or ETH, for instance, everybody begins to really feel scared. The present market is in an oscillation. The enter of spot can solely be optimistic, however provided that the marketplace for buying and selling digital belongings is turning into more and more established, it should be spot plus futures. Numerous macroeconomic and coverage elements could have an rising impression on the information. Consequently, the marketplace for investing in digital belongings will regularly mirror market and financial realities. It’s essential to make use of each prolonged and concise sentences. As a substitute, traders could go for a short-term or long-term investing technique relying on the general market surroundings and information to find out the present market development and attain at an affordable evaluation and funding. Shorting can’t be said to attenuate losses.
Q5: Why did you resolve to start out on the futures alternate? The crypto digital sector presents a variety of different enterprise prospects, together with these within the media, market evaluation, quantitative buying and selling, decentralized finance, decentralized storage, spot exchanges, and extra.
A: As somebody who has labored on this area for greater than 8 years, I can converse from firsthand expertise. I’ve additionally been concerned within the funding and commerce aspect of the enterprise as a result of it’s unattainable to separate the expansion of an trade from the development of a stable infrastructure. With the assistance of this facility, you might also perceive the observe in your query.
As a result of quickly increasing dimension of the digital forex market, which is engaging an increasing number of individuals to take part available in the market, there may be an rising want for funding administration of digital belongings.
This market hasn’t but fashioned an unmistakable high, however futures buying and selling is already being provided by sure heads of spot buying and selling, and it has an enormous quantity of room to develop. Regardless of the provision of exchanges that present Blockchain asset circulation for the entire market and the imperfect normal dynamics of the futures market’s improvement on the time, knowledgeable derivatives alternate continues to be missing available in the market.
Buying and selling quantity has grow to be a extra in style option to spend money on digital currencies because the market collapse. A specialised derivatives alternate is subsequently required available in the market.
In actuality, I mentioned that many futures exchanges presently place a larger emphasis on advertising than on creating skilled and high-quality merchandise, which makes them uneven and vulnerable to a lot of issues. My purpose is to determine a baseline for the derivatives observe.
Q6: In the mean time, many exchanges supply contract buying and selling options. Intense competitors exists on the futures observe; does BIKA possess any benefits?
A: To start, BIKA Change is a world digital asset buying and selling platform that gives a safer and sooner digital asset derivatives buying and selling service to international customers. Regardless that the futures observe is extremely aggressive, we now have our personal full product and repair programs. We’re assured that we’ll stand out within the futures buying and selling area by offering higher consumer service, higher items, safer asset safety, and a extra skilled crew.
For instance, the BIKA customer support system is extraordinarily responsive, bilingual, and obtainable across the clock to help purchasers with any issues they could have. We now have created BIKA Labs to supply day by day quotes, macroeconomic evaluation, protection of great occasions, present affairs, and so on. to our customers. BIKA additionally gives distinctive options like Tremendous Futures, One Click on Copy Buying and selling, and different transactions to reinforce the consumer expertise total. An important issue is that we maintain ourselves accountable for safeguarding our customers’ belongings and transactions via safety, requirements, and compliance. I’m happy to report that the workforce has continued to comply with the plan from the time of the muse till the current. We additionally repeatedly enhance our threat management and repair SOPs. BIKA is definite that it may possibly do higher regardless of the competitors.
Q7: Now that almost all of 2022 is thru, many companies are beginning to put together for the remainder of the yr and the one after that. What aims does BIKA have going ahead? What recommendation do you supply for different cryptocurrency traders and platform customers in gentle of the market’s current improvement and normal decline?
A: Enhancing companies and modernizing merchandise are the 2 key focuses of our planning. First, we are going to proceed to construct on our dedication to offering 7×24 customer support by including info companies, market evaluation companies, multi-channel buyer care, VIP skilled service, and extra main added-value choices. Second, we’ll introduce extra options with the purpose of bettering the present choices. As a way to set up a complete service and multi-functional one-stop crypto asset buying and selling platform, this contains launching the PC terminal, extra spot high quality tasks, bettering OTC perform, launching contract buying and selling part, monetary administration, decentralized mining, and so on. We respect all the assist from our customers. All customers are our product expertise officers, our energy, and our sharers as BIKA expands, helping within the enchancment of our platform.