Crypto revolution: Tokens such as bitcoin are paving the future for a new type of finances
Crypto tokens such as bitcoin, dominated financial headlines in the past weeks, with steep spikes in value and growing mainstream appeal.
Last Wednesday alone, bitcoin shot past £5,937.43 ($7,800), after kicking off the year at less than £761.21 ($1,000) per token.
However bitcoin still proved to be a volatile token and risky investment when it dropped by 22 per cent this weekend.
But David Johnson, CEO and co-founder of new crypto platform Latium, is certain that given enough time, digital currencies will forever change how money is used.
He told Express.co.uk: “I think we are at the start of cryptocurrency revolution.
“Ten years from now the financial world will look very different to what it is now.
“Some are not going to like it, just look at what Jamie Dimon said about bitcoin.”
Jamie Dimon, chairman and CEO of US investment giant JP Morgan, sparked the ire of crypto traders in September when he labelled bitcoin a “fraud” that “won’t end well”.
But Mr Johnson thinks this is a sign of the ‘old-guard’ of Wall Street’s moguls not getting on-board with the latest trends.
The fintech entrepreneur also dismissed Mr Dimon’s claims crypto tokens are a criminal currency, used for illegal activities in the dark corners of the internet.
He said: “Financial companies who get on board with crypto’s will move into the future. Those who will not, will get left behind.
Bitcoin users believe that digital currencies are safer and more transparent than fiat currencies
“I think Jamie Dimon is a very smart guy, who sees crypto currencies as threat to his business.
“There is simply no truth that only criminals use bitcoin.
I think we are at the start of cryptocurrency revolution
“Of course there are bad apples but they don’t represent crypto currencies as a whole. I don’t believe that.”
The biggest obstacle faced by the emerging digital currencies, is a disconnect between the technical aspect of crypto tokens and everyday users.
A 2014 study by the University of Illinois Urbana-Champaign, found that the average bitcoin user was 33-years-old, from the US and male.
The study concluded that in theory, bitcoin’s user base has no age limit, but its core users are younger, tech-savvy consumers.
Mr Johnson explained: “I think there’s an issue for people trying to get involved with crypto currencies.
“Which is why we want to create a bridge between the technical knowhow and the consumers.
“Right now you need a technical background to get involved, and I think a lot of everyday people are sitting on the fence.
“Much like the evolution of computers. They all started out with very technical user interfaces before they developed ease of access.
“But we are seeing a big movement towards crypto currency technology.
“I think we are part of that solution. We are one of the first companies to address this problem and try to solve it.”
Latium and LatiumX aim to integrate everyday labour with the exchange of crypto tokens
Latium and its by-product token LatiumX are en route to launch by the end of the month.
The platform will give people the option to exchange “a full sweep of labour”, ranging from bigger tasks to small ones, for its dedicated token.
The goal of Latium is to normalise the exchange of cryptocurrencies in everyday life.
Mr Johnson aims to raise £15.2 million ($20 million) within 48 hours of launching the platform.
He said: “We have no reason to believe it will not reach a substantial amount.”
But the new token is about to enter a crypto market where over 1,200 tokens are already tracked by CoinMarketCap, and risks being lost in an over-saturated environment.
Mr Johnson said: “There is definitely an over saturation of the market.
“Ninety-nine per cent of all companies fail. Period. Even cryptocurrencies.
“We are going through a boom phase and many simply cannot deliver on their promises.
“Industry leaders will eventually emerge, and we hope to be one of those.
“It’s not realistic to expect to see everyone of these tokens succeed – you will not see every 19-year-old raise $50 million.”
Cryptocurrencies are being apprehensively approached by the moguls of Wall Street
But the crypto expert is confident that normalising the use of cryptocurrencies will only benefit society in the long run.
As more and more people accept digital tokens into their daily routines, markets and governments will be forced to adopt them.
He said: “Cryptocurrencies are a technology that better society. Governments should not fight that.
“More and more countries will adopt cryptos as legal tender.
“The US will probably be the last to accept it. It will take years of regulations before that happens.”
He further argued that cryptocurrencies are a clean and transparent alternative to established fiat currencies.
Mr Johnson added: “It’s not about what the banks want.
“But what the people want – a more transparent method of payment.
“It is also important to understand that this is not a fad. It’s a movement.
“Those who criticise it, simply don’t understand how it works.”
For now, bitcoin is the clear leader in the emerging crypto market, but given the token’s volatility, new tokens could overtake it in the coming years.
Bitcoin cash, bitcoin’s sister token which split from the block chain in August, has already doubled in value and hit a high of £1,417.55 ($1,856) over the weekend.
David Johnson argued that cryptocurrencies will better society in the long run
Mr Johnson said: “Bitcoin is amazing for the people. It provides a more transparent market for the people.
“But someone can take it to the next level.
“Thirty years from now it could be someone else that is leading the crypto movement.
“As far as LatiumX, we have no visions of grandeur. I can’t say we will come out on top of the other cryptos.
“But we don’t want to stand still. We want to move forward.”