According to the co-founder of the Evercoin crypto exchange, pain and fear are good for crypto. This is because it makes it possible for traders to avoid repeating past mistakes. Miko Matsumura said that fear kept people from harm.
He gave the example of someone sitting in a room where a tiger showed up. If you felt fear and knew pain would follow, you would take measures to protect yourself. Matsumura made the comments during the recent Coinsbank Blockchain Cruise. He was part of a discussion panel whose focus was on pain and fears in 2018.
Matsumura explained that without pain and fear there would be no courage. He added that the recent dip in the crypto market would separate those who have courage from those who do not. According to him, this was a good thing.
About The Conference
During the 30-minute discussion, various areas were covered. They included ICOs, altcoins, exchange hacks, private keys, and smart contracts. Hartej Swahney also had something to add on the issue of pain and fear. He cited Andreas Antonopoulos, who is a Bitcoin advocate. He once said that when a child burns their hand, it would never occur again.
However, in this sector, he noted that when news about $5000 million being stolen from a Japanese exchange was reported, people usually brushed it aside. In his opinion, there was a need for people to “burn their hands.” Besides that, he added that there needed to be a more active discussion around cybersecurity.
Charlie Lee decided to comment on ICOs. He said that people were beginning to realize there is no free lunch and that most ICOs would fail. Consequently, people who put money in them a year ago were experiencing pain.
He said this was good. He added that people needed to realize that dumb ideas would not succeed because of a token. Charlie added that many people were learning this year and that was good for the industry.
Matsumura said that everyone was collectively making bad choices. However, the situation could be changed if people were educated on the basics such as public key cryptography. He added that people needed to know when people put their crypto in centralized or custodial exchange; the key no longer belonged to them.
Matsumura observed that people keep investing in things that are not good for them, which was amazing to him. For instance, they invest in ICOs, which have a low rate of success. He concluded by saying there was a need to share knowledge to change the situation.
Charlie Lee added to this and said the crypto revolution was still in the early phase. Thus, most people would leave coins on exchanges since they do not know how to protect their wealth. According to him, this was because people have always trusted the bank to protect their money. Besides that, there was always FDIC insurance. This new way of protecting money was new and it would push people some time to adjust.