BitBoy Crypto founder Ben Armstrong shares key takeaways from the 2022 Bitcoin Conference in Miami and what lies ahead for the crypto world.
video transcript
- Well speaking of rumours, a lot of rumors are coming out of Bitcoin '22 in Miami. To break it all down with us and look ahead to what's next, I'm joined by Ben Armstrong, founder of BitBoy Crypto. Good to have you back, Ben. Ben, in terms of attendance this year at this great event and what you got out of the experience, how would you describe it?
BEN ARMSTRONG: Well, the attendance was very high. Supposedly, the Miami Beach Convention Center could hold up to 15,000 people. It certainly didn't seem like it was full at all times, but maybe when you consider how many people came over the weekend, there could have been more than 15,000 people there. The estimate was that some 30,000 people were going to attend the conference.
It's something like doing several of these big conferences. I'll let you know, a lot of people go into town, to the after parties, and they don't even necessarily go to the event itself. But I think it was much improved from last year. I go back to two conferences ago, to 2019, Bitcoin 2019. Of course, we had the COVID year of 2020 where there was not one. And I can tell you that this conference was miles and miles and miles away.
It's the biggest crypto conference we have today. And there's definitely a lot of excitement. There were some big announcements. Some a bit faded. But it is definitely an event worth attending if you like Bitcoin or cryptocurrencies.
- And what were the biggest announcements that stood out to you?
BEN ARMSTRONG: Yeah, so the biggest ad... there were actually two. One that came out there is of course last year, it was announced that El Salvador would accept Bitcoin as legal tender. This year, we have the potential of possibly Honduras, we have the potential of a city outside of Portugal, possibly, and then Mexico really considering. We didn't get that big boom announcement, like there's a giant country accepting Bitcoin as legal tender right now, but those were maybe some pre-emptive announcements of some things to come.
But the big, big, big thing was now NCR, which is the largest point of sale system in the world, they were... I think Bed Bath & Beyond, Walgreens, McDonald's, Ted's Montana Grill, tons of other companies. , which will actually integrate with the Lightning Network so that by using your Cash app and a Lightning wallet, which is like a layer for Bitcoin, you'll be able to spend Bitcoin in a number of different places that you couldn't before. . And it's a different network.
It's not the standard card network, where retailers lose 3% on all those sales. It's a much, much lower rate, less than 1%, that they would be losing out on. So I think, for me, it was a little lackluster because I think you have to have the retail side, the stores themselves, to really push this narrative that, hey, we can give you a discount if you use this network, or something like that. I think we're still dealing with a motivation issue, because it's a couple of extra steps to spend your Bitcoin, or you can also spend US via Cash App using Bitcoin Lightning Network.
But it's a few extra steps to get people to do it. And I feel like people will continue to offer the card because it's easier.
- And it's interesting because obviously when Bitcoin first came out, it was considered the currency. But obviously now it has changed, and you see more people using it as a long-term investment. So how is this point of sale used now? How does that hurt or help the overall growth of Bitcoin and cryptocurrencies?
BEN ARMSTRONG: This is a great question, and I don't think there is a great answer to it. You know. So you had Michael Saylor, who came onstage with Cathie Wood. And when he left the stage, he said never, ever, ever sell your Bitcoin. And of course the crowd goes wild, clapping and all. And then there's Jack Mallers, who shows up and makes this point-of-sale ad.
This is basically like, hey, here's a new way to spend your Bitcoin, which is the equivalent of selling it, and the crowd goes wild. And there is a lot of hero worship in the crypto world, and I think people should think critically. Again, the only way this really helps is from the retail side to motivate customers or users to use another network so they save money.
You are right, Bitcoin, for me, has become digital gold. It's not something you want to sell. It is an asset you want to accumulate more of. That's why I also think that when you get to countries that accept cryptocurrencies and Bitcoin as legal tender specifically, why would we want a third world country to accept Bitcoin as legal tender, which means that people who live in that country who are already living lives in poverty who are actually spending and appreciating assets. It really doesn't make sense.
I think it's time Bitcoin maximalists move away from this "let's hold it as a currency and everyone spends it" argument, and accept it for what it is at this point, which is an appreciable asset that wants to earn more over time.
- And I want to talk about turning points. I mean, we saw with Bitcoin, some people say, look, I mean, obviously, Bitcoin fell today. It is currently under $40,000. Some people say it will go as high as $30,000. Cathie Wood, as you mentioned there, predicts that Bitcoin could hit $1 million by 2030. And then of course you have the Ethereum meltdown that everyone has been waiting for.
If you could just quickly give us your expectations, in terms of the biggest turning points for Bitcoin and Ethereum.
BEN ARMSTRONG: Well for me the biggest turning point right now is going to be this ETH meltdown over the summer. So traditionally what we see is a four-year cycle of Bitcoin based on what we call the Bitcoin halving, where the block rewards are halved. Basically, the production of Bitcoin is halved every four years. This leads to a price spike for about a year and a half, and then a tremendous price drop. Right now, we are right at the point where we should be in the middle of a bear market.
But Bitcoin has held up. We have not seen new lows since last summer. So to me, I think the only chance of us getting out of this four-year cycle and seeing Bitcoin hitting all-time highs again, maybe late this year, early next year, is for Ethereum. to finally take a seat at the top of the market and lead the market. Ultimately, I think Ethereum will overtake Bitcoin in market cap. I don't even think it's a question.
It's just a matter of when. So with this ETH meltdown, with ETH inflation going from 4.3%, to 90%, to 0.4% per year, I think this is a tremendous moment in crypto history, and this will be the moment that will determine if ETH can take a seat and lead the market or we will continue to be slaves and dependent on Bitcoin to move the market. And if that's the case, then buckle up, next year could be a bit rough as we get closer to the 2024 halving, which should happen sometime in March or April 2024.
