The continued decline in the cryptocurrency market is a good time for the community to strengthen its infrastructure fundamentals, according to the chief strategy officer at 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 Weekly Fund Inflows Report, digital asset investment products saw outflows totaling $423 million last week, It is the largest since records began by a wide margin.
The report indicated that outflows were most likely responsible for Bitcoin (BTC) dropping to $17,760 on June 18, the lowest price recorded since 2020. A more resilient infrastructure for crypto and decentralized finance will not only help ensure security, but It will also allow for more decentralization, Demirors said in an exclusive interview with Cointelegraph on June 9.
According to CoinShares CSO, the current crypto infrastructure is highly dependent on centralized service providers such as Amazon Web Services and others. The executive said there are plenty of ways to build peer-to-peer networks for computations, get better communications, better broadband connectivity and decentralize, and make the power grid more resilient.
“I come from the oil and gas industry and invest in infrastructure, so it is interesting for me to go full circle but to include crypto economics and some of these principles of decentralization in infrastructure investment to make our global systems more resilient,” Demirors noted in the interview.
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Demirors also stated that they are very excited about decentralized identifiers and verifiable credentials, along with the use of bitcoin as a communication protocol. It stated that a higher level of infrastructure would make encryption more resilient to attacks and vulnerabilities that come from “the fact that bits and bytes require atoms to function,” adding:
“We’ve been very focused on tokens, 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 to make crypto more resilient.”
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