The FINANCIAL — The world is rapidly growing digital, which leads to modernization of money system to accommodate today’s needs. Information exchange has become simple and instant worldwide, although this does not reflect on money transfers, which in a nutshell is also information.
Cryptocurrency is a digital currency, which in a way can be presented as a base of a new financial system and is much more open, fair, borderless and native to the interconnected world. Potential implementation of this system can bring something utterly interesting and transformative for everyone across the world.
Cryptocurrency has taken the world by storm with the innovative decentralized systems, in a manner that has never been dreamed of being possible before. This means no more traditional banking procedures and high fees, but instead we got the ability to enjoy peer-to-peer cryptocurrency transfers and ownerships, with low-cost and fast transactions anywhere in the world. You don’t have to deal with banks anymore, because this system does not depend on third party involvement at all, you can be your own bank now.
Early adopters of such systems claim that it’s an evolutionary step in the history of currency development and will strengthen its position in the future. On the other hand, sceptics believe that bitcoin and cryptocurrencies in general are financial bubbles and they don’t hold any value. The debate between these two groups can be compared to the historical discourse between people who thought that fiat money is a logical evolution of gold/silver and the ones opposing it..
“The concept of money changes with time, once-valuable seashell, which at some point was used as money, today is nothing but a mere souvenir. Idea of the paper money, as a means of exchange, store of value and unit of account at this stage has almost reached the final form, but it is still far from perfection. Moving to perfection is a continuous process and the 21th century gave mankind new kind of money, bitcoin.”
Nika Tsotniashvili is a respondent of The FINANCIAL`s in the following article.
What is Coinetic? – It’s the first Georgian fully fledged cryptocurrency exchange platform, which offers users a comfortable and secure environment, where they can easily purchase, sell or store popular cryptocurrencies.
Can you tell us the story behind Coinetic?
Coinetic is one of the recent projects of the company “Birtvi”. The company, which has been developing an infrastructure and applications based on decentralized technology for several years. About a year and a half ago we decided to create cryptocurrency exchange platform, our decision was mainly influenced by the existing problems associated with cryptocurrency trading in local Georgian market. Coinetic is a fully Goergian software product, tailored to Georgian customers, created by the best team of Georgian programmers and I think that the task was accomplished pretty well.
Before Coinetic, there were several providers on Georgian crypto market, who abused their monopoly, by setting their unfair prices and commissions. Our appearance influenced them to change this malpractice. It is evident that competition has already affected Georgian crypto market, from which at the end customer will benefit the most.
Who should be visiting? What will they find?
Cryptocurrency, in my opinion, is the next stage of the money evolution, and our door is open to anyone who wants to see this future. While designing the platform, we were oriented to meet the needs of different groups, starting from the beginners to the advanced cryptocurrency traders.
That’s why we have focused on a tree key aspects: simplicity, advanced functionality and low fees. We offer easy to use, beginner friendly platform, with complete knowledge base and video materials to guide you through the entire trading process. Simplified fiat operations give our customers the ability to easily deposit or withdraw Gergian Lari from their bank accounts, with Oppa and Apw`s electronic wallets integrated into our platform. Additionally you can use vast network of PayBoxes around the country to easily deposit fiat on your coinetic account. Advanced trading tools will be useful for experienced traders for planning and executing their trading strategies.
Most importantly, all of this is done with the most competitive prices for top performing cryptos and the lowest commissions on the market. For example, the commission fee for withdrawal to the TBC bank account is just 1 GEL and I think its a record not only in Georgia, but also in the international market. I guess this option should appeal to miners who are selling their mined coins to cover their operational costs.
What do you think is the future for cryptocurrency?
We have to imagine cryptocurrencies, as the Internet in the 90s. The subject of speculation, which was vaguely known by many, and well understood by few.
Just like the internet at that time, cryptocurrencies are also experiencing lack of trust and is subject to a great debate. I believe that cryptocurrencies will have the same transformative path as the internet and soon it will be an inseparable part of our everyday life. The key question and what I can not specify is how long this will take. Adoption is a very complex process and it is entirely up to the people to move into a new era. But we also have to take into account different macro factors that can foster or slow adoption process such as regulations, currency crisis and inflations, risks inside the cryptocurrency communities, rapid technological breakthroughs and etc.
What value will Coinetic bring to its users?
Bitcoin and other cryptocurrencies are relatively new forms of currency which have been existing little over 10 years. They have just started establishing themselves as a new digital asset class on mainstream financial markets. Our mission is to accelerate the adoption of cryptocurrencies, so that everyone can enjoy a new type of open financial system, which empowers individuals by giving them full control over their financial decisions with appropriate tools for swift transactions and peer to peer interactions in a trustless manner, without any involvement from third parties and censorship.
Coinetic will provide its customers with advanced and secure tools for trading and managing this new asset class. Also, Coinetic offers the necessary knowledge and understanding of what it feels like to interact with a new decentralized open financial system, where users have full independence and responsibility for their financial activities and future. We invite everyone who shares our vision to help us improve our service with insights, recommendations and critical comments, because we believe our success depends on the satisfaction of our customers.
What is the approach of the Georgian regulators regarding the crypto market? Are they supportive?
It may be argued that Georgia has a good potential to become the best environment for the blockchain and crypto related projects. This is supported by many facts, for instance Georgia is the third largest country by the number of active miners – we are falling behind China and the USA only. Additionally, there is a growing interest in public administration and different governmental agencies for integrating blockchain technology in their information systems, the Public Registry is already using blockchain based system to secure the management of land title ownership. As for cryptocurrencies, there are no regulations in our country yet. According to the Law of Georgia, the income earned by a person from mining and cryptocurrencies trading activities is exempt from state tax, which makes Georgia an ideal place for people willing to invest time and resources in crypto. I hope Georgian government will realize all the potential blockchain technology holds and will be more active in harmonising the existing legislation for fostering the development of Georgia as a hub for crypto and blockchain technologies. This will give our country ability to gain competitive edge considering the digital transformation that world is constantly experiencing. We, as a country really need a niche to be distinguishable, hence blockchain technologies might be a huge breakthrough in terms of innovation and our country’s economy in general.