Keith Teare, Co-founder Of Techcrunch: Without Token, Blockchain Is Just A Database
Keith Teare, the co-founder of Techcrunch, said to CoinTime, “ My whole life, I do start-ups”.
Since the early 1980s, Keith Teare started his career as start-ups entrepreneur. In 1994, he co-founded the famous internet cafe Cyberia in UK with Eva Pascoe, David Rowe and Gene Teare.
In 2005, the American online publisher of technology industry news, Techcrunch, was founded by Archimedes Ventures, Michael Arrington and Keith Teare, which has became one of the popular tech news platform. It reports on the business of tech, tech news, analysis of emerging trends in tech, and profiling of new tech businesses and products.
Recently, Keith Teare shared his view about crypto world with CoinTime in GDIS hosted by Silicon Valley Business Institute.
Bear Market? Bull Market?
Since the beginning of 2018, the price of cryptocurrency has been falling down dramatically, with the representative of bitcoin price dropping to around $6400. The market is moaning for the loss, however Keith Teare views it differently.
“I really don't think that bear market is a bad thing. My whole life, i do start-ups, and when you do start-ups, nobody believes in you. In a way the start-up is always in a bad market until it’s successful.”
For Teare, what is unusual about blockchain is that there was a bull market. With the price adjustment, the industry is now back to normal the way it should be. For the start-ups, it should be difficult to raise money, because investors have to evaluate how good the project is.
Some people regard now as the winter of cryptocurrency, while Teare thinks that blockchain and cryptocurrency is still a baby. The reason people have been confused and depressed is because they have false expectations, the expectation that one could quickly attracts large percentage of the world economy into blockchain and cryptocurrency. He believes blockchain and cryptocurrency would have to be more solid.
When would be the next bull market? Keith Teare's answer is there isn't one. He compared the internet age back to 1999 with now. In 1999, Amazon lost 98% of the stock value. After 20 years, the stock value now is twice of the value back then. For crytpto market, there shouldn't be a bull market again, “There should be a slow increasing value”, Keith Teare said.
The Value of Cryptocurrency
The fluctuant digital coin prices caused doubt of the cryptocurrency value in the market. For Teare, crypto coins have store of value if only their network is active.
Teare explained the relationship between value and work, “Value is stored work, so if there is no work, there is no value. The network, in order to be valuable, has to be used.”
For the current mainstream coins, Keith Teare still affirms their value. He said, “I dont think the price of bitcoin and ETH going back to zero is possible, because the real network is too big.”
For the investment risk of cryptocurrency, he believes that the lowest risk is bitcoin. Because bitcoin is a real network, there is real people choosing to take value from dollars or RMB and put it into bitcoin. It's relatively stable over the medium term. It could be very volatile in the short term. It represents a universal equivalent.
The next layer of risky is Ethereum, Teare said. “Ethereum is a developer network, creating applications, and it's very active. As long as it continue to be active, the risk would be low. In the medium long term, it should be good.”
“We live in a digital age, so I expect the best store of value would be digital, and I think bitcoin and Ethereum looks really good compare to other choices. As for other coins, they can only be stronger if there economy represents. If you capture human work, and get the people who participate to accept your token as a symbolic of their work, then you will capture real value. Then you can have a strong token,” Keith Teare said.
Community and Token
Talking about the concept of good community, Teare mentioned his own project Venture Network, which is also a community with start-up founders and investors getting involved. The community is motivated by reward token. Keith Teare said, “People don't have to buy it, they qualify for it. The way people qualify the Venture token in the community is by having their company founded.”The value of the token will be represented by the price.
In the bear market, the ICO is facing a cold winter too. With the strict regulation towards ICO in countries like China, there is discussion about blockchain community development without token offering. However, Teare believes in the value of token in the community.
“Blockchain sucks as a technology, it sucks. I am a database expert, I can do the database a million time faster than blockchain. If all you want is a database, you will never choose blockchain. By taking the cryptocurrency away, all you left is a database. And its a bad database. So no one would use it.” Teare said directly.
Teare believes that token plays an incentive role in the ecosystem. “If you separate incentives from the use of network, you kill the network.”
Keith Teare once said publicly, “ ICO is died.” He also explained his idea in detail to CoinTime.
“I think what died is ICO 1.0. ICO 1.0 is selling tokens to investors, and it is mainly consumer investment. The large number of small investors, in the last 3 months, they all lost their money. So they are not there anymore. Now what is left is institutional investors. How will institutional investors buy tokens would be different. Investing is not died, it's just the version one of selling token is died.”
Executive editor： Emily Sun