It’s time to refocus on crypto infrastructure, CoinShares CSO says
June 29, 2022The ongoing cryptocurrency market decline is the right time for the community to strengthen infrastructure fundamentals, according to the chief strategy officer at the European digital asset manager CoinShares.
CoinShares is one of the largest digital asset investment firms in Europe, with net assets exceeding $260 million by the end of 2021. According to CoinShares’ latest fund flows weekly report, digital asset investment products saw outflows totalling $423 million last week, the largest since records began by a wide margin.
The report noted that the outflows were likely responsible for Bitcoin’s (BTC) decline to $17,760 on June 18, marking the lowest price level recorded since 2020. A more resilient infrastructure of crypto and decentralized finance will not only help ensure security but also would enable more decentralization, Demirors said in an exclusive interview with Cointelegraph on June 9.
https://www.youtube.com/embed/0FBYbq8Zji4
According to CoinShares CSO, the current crypto infrastructure is very much dependent on centralized service providers like Amazon Web Services and others. There’s a lot of ways to build peer-to-peer networks to perform computations, have better telecommunications, better broadband connectivity and decentralize and make the energy grid more resilient, the exec said.
“I come from the oil and gas industry and infrastructure investing so for me it’s fun to sort of go full circle but to embed crypto economics and some of these principles of decentralization into infrastructure investing to make our global systems more resilient,” Demirors noted in the interview.
Related: ‘Builders rejoice’: Experts on why bear markets are good for Bitcoin
Demirors also mentioned that she’s very excited about decentralized identifiers and verifiable credentials, along with using Bitcoin as a communication protocol. She stated that a higher infrastructure level would make crypto more resilient to attacks and vulnerabilities that come from the “fact that bits and bytes require atoms to function,” adding:
“We’ve been so focused on tokens and money and Web3. I think it’s time to refocus on the underlying infrastructure layers that make all of that possible and really think about how we make crypto more resilient.”
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