CoinGecko: No One Can Predict the Price of Bitcoin Accurately
A popular reference in Bitcoin and alternative currency charts, CoinGecko has proved to be a front runner in providing the cryptocurrency community with up to date data. Coin News Asia had managed to speak with Bobby Ong on this remarkable website.
Coin News Asia: Tell us a bit about CoinGecko. What are some specific challenges you’ve encountered in mounting it?
Bobby Ong: We launched a basic version of CoinGecko in April 2014 on the Bitcointalk forum. It took us about 1 month of development work before our launch.
One of the main challenges that we faced when launching was agreeing on a way to fairly evaluate cryptocurrencies. We decided at the end to rank cryptocurrencies based on developer, community and trading volume. We have since expanded upon our original algorithm to also take into account market capitalization and public interest these days.
I became really interested in cryptocurrency during the Cypriot financial crisis in 2013. The threat of bank deposit seizures by the Cypriot government brought me to ask if federal deposit insurance schemes can really be trusted to be safe. A statement by the government can remove the trust almost immediately and when reports of Cypriots attempting to use bitcoin to protect their assets began surfacing, I was really intrigued in finding out how bitcoin can be used to protect assets against unwarranted seizures.
CNA: What have been the greatest accomplishments or the best times you have had while operating your business since its inception?
BO: I think that since we came on board, we have brought on a larger debate among cryptocurrency enthusiasts to evaluate the various aspects of an altcoin instead of solely looking at its market capitalization. These days, we see people referring to our site to better gauge how a coin is doing in terms of development, community, trading volume, public interest and also market capitalization.
CNA: Do you think a superior altcoin will surpass Bitcoin in the near future?
BO: It would take a lot for an altcoin to supersede Bitcoin. Bitcoin already has a huge network effect. However because of Bitcoin’s huge market capitalization, any changes to Bitcoin’s code takes a long time for approval and this is where altcoins will play a big impact in encouraging innovations. Sidechains may change things in the future but we are not at that stage yet.
If there is a bug to Bitcoin, this will most likely affect almost all other altcoins as well since most of them are descendants of Bitcoin, except coins such as Ripple, NTX, or Bytecoin.
CNA: What do you think Bitcoin needs to become a more prominent form of payment?
BO: I think one of the big problems that is currently preventing bitcoin from being used as a mainstream medium of exchange is its volatile price. There is no problem for merchants to accept bitcoin as the pricing volatility is hedged by selling bitcoin immediately upon receiving it. However for buyers, it is still risky to hold bitcoin for purchases. Consumers still seem to prefer their credit card as it is convenient, offers loyalty points and also protection from fraud.
CNA: Do you have a Bitcoin price prediction?
BO: No one can predict the price of Bitcoin accurately. I would say that in the short term, price will be volatile and we may see price appreciation in the long-term. Whether or not price do hit the craze of early 2014 and beyond depends on many factors, chief among them the expectation of mainstream user adoption.
CNA: Any advice to Bitcoin newbies?
BO: Read up on Bitcoin from the various guides available. If there are any follow-up questions, do ask them in online forums like the BitcoinBeginners subreddit.
CNA: Thank you very much, Bobby.