Reddit Co-founder: Bear Market is Good for Crypto Innovation

Alexis Ohanian has spoken about the current state of the cryptocurrency markets.
The Reddit co-founder believes that the dwindling prices experienced throughout 2018 are good for the space and will allow those committed to it to work with fewer distractions.
Ohanian Silent on Previous Ether Price Call
One of cryptocurrency’s most committed bulls, Alexis Ohanian, has stated that the current bear market is actually good for the digital asset and blockchain industry.
Ohanian founded the wildly successful social news forum Reddit from his university dorm room in 2005. A few years later the site became a useful resource for Bitcoiners and this gave the entrepreneur a rare early opportunity to observe, engage with, and learn about the community and tech.
This led to Ohanian developing a keen interest in cryptocurrency and blockchain technology.
In 2013, he decided to take a more hands-off approach to Reddit and pursue a venture capital fund known as Initialized Capital. The early stage investment group has previously invested in Coinbase and other crypto-related startups.
In a recent interview with Breaker Mag, Ohanian was joined with his Initialized Capital partner Garry Tan to discuss the state of cryptocurrency as well as what the pair looked for in terms of blockchain startups to invest in.
The Initialized Capital co-founders first addressed their approach to picking prospects from the digital currency space. Tan told the publication that there was little difference between how they evaluate blockchain firms and non-crypto ones. He said if the company in question was able to outperform the competition then it mattered little if they were centralised or decentralised. Ohanian supported this point, but added that Initialized Investments believes blockchain can provide “better, cheaper, faster” services.
The interviewer then addressed current market conditions. In response to a question about whether Ohanian and Tan believed the current bear market to be permanent or simply a passing phase, the pair agreed that prices would eventually resume an upwards trajectory. Commenting on what could break the downtrend, Tan stated:
“How it comes out of the current crypto winter, we still think it will come back to real use cases.”
Rather than dwelling on the dropping prices, the partners instead focused on the positives of such a bear market. For them, the bursting of the late 2017 bubble allows those developing projects to concentrate on more important matters than price. Tan said:
“The last time this happened, Bitcoin went from north of $1,000 down to $250, and that winter lasted years. People started losing hope, and out of that came etherium [sic]. Truly useful things come out of the nadir of the last hype cycle.”
Ohanian added that the price action had pushed many speculators away from the market. For him, such a move causes the space to realign and “really incentivises the people who are building to just build.”
Interestingly, during the interview there was no mention of Ohanian’s early 2018 price call for ether tokens. The Reddit co-founder famously stated in May that he believed the number two digital asset on earth would reach a staggering $15,000 this year.
With the price floating around the $213 mark at the time of writing, a prediction that looked far-fetched then now looks all but impossible.
Related Reading: Reddit Co-Founder Bullish on Bitcoin Despite Current Price Slump
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Reddit Co-Founder Bullish on Bitcoin Despite Current Price Slump

Alexis Ohanian, the co-founder of popular news and forum site, Reddit, is bullish on Bitcoin despite the current price slump. His optimistic views on the future of Bitcoin come as he moves away from Reddit and towards more venture capital initiatives, including investments in cryptocurrencies and cryptocurrency companies.
Following the acquisition of Reddit by Conde Nast parent company, Advance Publications, Ohanian has been slowly relieving himself of his day-to-day duties at the online platform. The 35-year old is now looking towards investing in more cutting-edge technologies, including Instacart, and self-driving car company Cruise. He has also been moving further into the cryptocurrency industry, acquiring a sizable amount of Bitcoin as well as an investment in cryptocurrency exchange Coinbase.
Ohanian is optimistic about his investments on both a fiscal and personal level, explaining that his new job as the head of his venture capital firm, Initialized Capital, allows for better family discussion with his wife, tennis star Serena Williams.
While speaking about Initialized Capital, Ohanian said:
“I’ve wanted for a long time to get back to early stage founders to being the ‘first check’ in Initialized. It’s a lot of fun, frankly. I get to come home and have really good dinner table conversations about the things I did at work, and it’s always [about] meeting new founders, learning about the future and then sometimes rolling up my sleeves.”
Ohanian Bullish on Bitcoin and the Future of Cryptocurrency
Despite the current price slump in the cryptocurrency markets, falling from a market capitalization of over $800 billion in January to its yearly low of under $200 billion in August, Ohanian is still incredibly optimistic about the future of the cryptocurrency markets.
Part of his bullishness on crypto is due to the instability of fiat currencies in countries in economic turmoil, saying:
“As a store of value, there is some real traction [with bitcoin], and actually as we’re seeing in countries like Turkey that are having significant economic crisis — where people are losing faith in the Turkish lira — we’re going to see money move over to bitcoin because as unstable as it is, it is actually a lot more stable for a lot of people than their own nations’ fiat currency. But right now, we’re still in the earliest, earliest stages.”
Ohanian is referencing the overwhelming devaluation of fiat currencies in countries like Turkey, who have seen their state-backed currency, the Lira, decline in value by 50% since September of 2017 due to economic decline. Another country that has been turning to cryptocurrency over their fiat currency is Venezuela, who has seen hyperinflation of their fiat currency, the Bolivar totaling an estimated 1,000,000% by the end of 2018, according to the International Monetary Fund.
In Venezuela, citizens are turning to cryptocurrencies, like Dash and Bitcoin, to make daily purchases, as no middle man is required to initiate or complete a transaction.  Dash has seen a meteoric rise in adoption in Venezuela, mainly due to a massive marketing campaign in the country.
The CEO of the Dash Core Group spoke to Business Insider about Venezuela, saying:
“We are seeing tens of thousands of wallet downloads from the country each month… Earlier this year, Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now.”
Ohanian doubled down on his bullish statement on the future of cryptocurrencies, explaining that price action doesn’t really matter right now, saying:
“No matter what the currency prices are doing, seeing more and more people creating accounts … shows more and more adoption, and their end game is to be this interface between people, their fiat money and crypto — it would be the most user friendly trusted safe secure way to do it. I just encourage people not to get too, too invested in the speculation around the day-to-day trading of the currencies.”
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