The current decline in the cryptocurrency market is the right time for the community to bolster infrastructure fundamentals, according to the chief strategy officer at European digital asset manager CoinShares.
CoinShares is one of the largest digital asset investment firms in Europe, with net assets set to exceed $260 million by the end of 2021. According to CoinShares’ latest weekly cash flow report, digital asset investment products saw outflows totaling $423 million last week, the largest since records began by a wide margin.
The report noted that the outflows were likely responsible for Bitcoin (BTC) crashing to $17,760 on June 18, marking the lowest price level on record since 2020. A more resilient cryptocurrency and decentralized finance infrastructure would not only help ensure security, but would also allow for greater decentralization.Demirors said in an exclusive interview with Cointelegraph on June 9.
According to the CoinShares CSO, the current cryptocurrency infrastructure relies heavily on centralized service providers like Amazon Web Services and others. There are many ways to build peer-to-peer networks for computing, to have better telecommunications, better broadband connectivity, and to decentralize and make the power grid more resilient, the executive said.
“I come from the oil and gas industry and infrastructure investment, so it’s fun for me to come full circle and integrate crypto economics and some of these principles of decentralization into infrastructure investment to make our global systems more resistant”Demirors noted in the interview.
Demirors also mentioned that she is very excited about decentralized identifiers and verifiable credentials, along with the use of Bitcoin as a communication protocol. She claimed that a higher level of infrastructure would make cryptocurrencies more resistant to attacks and vulnerabilities stemming from “the fact that bits and bytes require atoms to function,” adding:
“We have been so focused on tokens and money and Web3. I think it’s time to refocus on the underlying infrastructure layers that make all of that possible and really think about how we make crypto more resilient.”
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