Too late to invest in Bitcoin | Regulating the ICO Space | Interview with the CEO of GSX Nick Cowan

Foreign. So my name is Nick Cowan, I'm the CEO of the Gibraltar Stock Exchange. And we got involved in the crypto space about a couple of years ago. We were asked to help a company structure and launch the world's first asset backed security match the performance of the Bitcoin. So we had to sit down with our regulator, we had to go on a bit of a journey. Took us some time, but we got the product away, we launched it and that really took us into the space. Then in 17 we saw the explosion of the ICO market. The government's bringing in regulations from January to regulate distributed ledger technology operators. So we thought as the Stock Exchange of Gibraltar, we should try and bring some leadership and governance to this whole ICO space. So we've opened the Gibraltar Blockchain Exchange which kicks off in January in terms of being open business. And GBX is simply this. We're bringing governance and best practices to the ICO space using a rules based system. So we are now fully engaged in the crypto space. When the government announced in May 17 a framework for regulations, there were nine principles. I don't think anybody in Gibraltar quite realized how much interest demand from companies looking at Gibraltar that there would be. And we've just been overwhelmed by the interest in us. So with our regs coming into place in January, we've already seen a number of applicants looking to get licensed from January, ranging from exchanges, fellow exchanges, cryptocurrency exchanges, banks, asset managers, players in the space, custodians. So we see I think Gibraltar having an incredibly exciting few years ahead of it, being one of the first movers. So for us is the exchange. Well, we've got two things. GBX will be the utility token exchange which we're launching in January. And then during 18, we're going to be looking to put Gibraltar Stock Exchange, the main exchange, completely on the blockchain using distributed ledger technology. So if you're a security, you can come to GSX and effectively be a digital equity. You can trade securities on a digital exchange. If you're a utility token, you can come to gbx. So we believe we have extremely exciting and attractive opportunity, but also offering to help stakeholders, issuers, investors meet in a digital marketplace. 50 years ago My granddad used to get paid in cash on a Friday. And then they started to say, you know what, we're going to actually give you a check. And there was just what are you talking about? This is paper. And then 10 years later, we're not going to give you a check. We're actually going to put the money directly into your bank account. You can imagine that sort of transformation. I think whatever happens in the future, there's a transformation probably over the next five to 10 years. Because cryptocurrencies at the moment, they are not mainstream, they're not available. My mum doesn't know how to open a wallet. I'm only just learned how to open a wallet. It's going to take I think another 10, 20 years. But you know what, I do believe there will always be fiat because until I think the technology supports the cryptocurrency space and the volatility starts to slow down, then I think there will always be an area of suspicion, particularly from the older generation, about what is this new digital currency that basically comes with a code. So I don't think you'll have one or the other. But I do believe they'll blend over time and it'll become a lot more acceptable and mainstream for a method of payment. I think that there has to just be more acceptance of it. You know, I think what you're seeing now is, you know, my background is trading, so I've lived through a bubble in 89 in Japan, I lived through a bubble in the dot com boom in the States. And for something, when I said earlier the bitcoin asset backed security, when we launched that asset backed security, that was August 16th, it was $400. Now it's at $10,000. I think it touched 10,000 yesterday. Correct me if I'm wrong, that is not sustainable. You can't have something go up 25 times in a year. So what you're seeing now, I think is in terms of the demand for bitcoin, you're seeing a fear of missing out. And people are saying, you know what, I was stupid to miss it at $500, I was stupid to miss it at $5,000. I now have to pile in. I think in terms of the protocol, listen, I'm not a tech guy, but I think because of the, in some ways there are limitations of the protocol. I think what you'll see is fellow Ethereum based blockchains where you've got the ability to smart contract. I think that they will continue to emerge over the next 10 years. But I think in terms of bitcoin, you know, I keep saying I've missed it, it's probably going to be $100,000 in a year's time and I'll just be kicking myself and saying I'm an idiot. But 25 times sustainability per annum, I can't see that carrying on. We sold 20 of our business this year to a Asian fintech company. And they're Singaporean, they're Hong Kong, and they're younger, fitter, better looking and wealthier than I am. They keep saying, you're so old, what do you know about blockchain? Why are you in this space? You're just an old trader, what are you doing? And that's been, I think, the most interesting thing that actually I used to say, listen, I always try to learn from people older than me. I'm now that old person. And in fact it's turned around because actually now I'm having to learn from people younger than me. So I kind of missed out on both counts. I clearly haven't taught anybody anything. But it's what I think is amazing over the last few years is the transformation from fintechs being young to actually, as you're seeing development, going more mainstream. I was in a country in Asia last week. I spoke to 500 people and the average age was 60 and they were all cryptocurrency traders. So I was the youngest in the room. So that's a. Obviously something's changing.