Interview With Kurt Wuckert, Crypto Traders Pro Analyst
Kurt Wuckert Jr is a Fundamental Analyst for the Crypto Traders Pro community. A bitcoiner since 2013 and a big fan of Monero and Digibyte, he has strong opinions about what makes sound money.
Kurt hosts a daily live cast at Crypto Traders News and spends his evenings coaching Brazilian Jiu-Jitsu athletes with the Alliance Association in Chicago.
Kurt can be found anywhere there’s good music, good food, intellectual anarchists, or a moderated debate. He is also happily married and has a very old dog.
What changes do you expect in the crypto market?
As a longtime investor and advocate for use as a means of exchange, I have seen the narrative change a lot. In 2013-14, there was frenzied investment, but after MtGox crashed, there was much discussion of Bitcoin’s utility as a means of exchange, and we saw adoption in retail and integrations for real world use. That was all before the scaling debate created Ethereum, all altcoins and the mass Exodus of developers from Core to go work on other projects. Now, we saw 2017 become a frenzied investment phase again, and use-case seemed to cede ground to investment talk. My hope is that, rather than seeing cryptocurrency be either an investment or a real-world economic tool, it will become both. When cryptocurrency is a good investment because it has real world utility, we will see truly all time highs that don’t fluctuate so aggressively. In the short term, I think we will see loud speculation and mostly quiet development until the space matures.
Do you also use blockchain technology?
I’m not a developer, but I convert most of my salary to cryptocurrency, and I work in the business (https://cryptotraderspro.com/) that only accepts Bitcoin, Bitcoin Cash and Litecoin for payments. So, while I’m not programming smart contracts, I’m utilizing blockchain commercially on a daily basis.
What are the legal problems for miners, investors and developers?
That’s a complex question and depends on many variables. Miners may struggle with legal issues primarily in China because of their national censorship of Internet traffic. They could also potentially be hit with antitrust suits or racketeering in certain scenarios. Investors could find themselves in a position to be implicated in problems of money laundering and even funding terrorism. Of course, the nature of a truly decentralized blockchain (of which, there are only a few) mitigates this, but it’s something that the government has tried to do time and again. They were successful in implicating Charlie Shrem of BitInstant for such things, and there’s no reason to assume they wouldn’t try again. Developers could be implicated in similar things. Another bigger concern is in Proof of Stake coins. At scale, pure Proof of Work coins, like Bitcoin Cash, become more decentralized as there is more incentive for miners to mine. This is what specifically makes BCH “not an investment security.” With a Proof of Stake coin, you are having holders of a coin secure transactions personally using their own wallets in a way that benefits them proportional to their stake in the network. They get paid in what is arguably a dividend, and therefore may be engaged in propagating the distribution of an unlicensed security. As PoS coins scale, they remain centralized and will likely become more centralized as they scale. The other issue is that, since transactions jump through PoS nodes, the node holders may also be considered unlicensed money transmitters. This is my primary aversion to PoS, and a major flaw in the fundamental governance of Lightning Network: removing distributed Proof of Work fundamentally changes the economics and the governance of Bitcoin and other blockchains, which functions like a legal and regulatory leak in what was previously an airtight hull.
Let’s talk about your plans for the next six months. What are you going to achieve?
My personal goals are to spread the grass fire of cryptocurrency. I believe in full retail adoption, tokenization of everything and growth to integrate the Bitcoin protocol into everything! I do this by offering to help local businesses integrate with wallets and point-of-sale systems, and by offering to pay all service professionals in cryptocurrency. At https://cryptotraderspro.com/, Matthew and I are working to roll out new course material, so people can understand fundamentals of blockchain, real-world utility and technical analysis of charts! We would also love to see our YouTube channel (https://www.youtube.com/channel/UCC3AXan739m22XT6d6BstLQ) grow to have 5000 subcribers by the end of 2018.
What do you think is the future for cryptocurrency?
Worldwide payments, chain of custody, tokenization of everything and management of all data and communications. Blockchain, properly implemented, can be the future of almost everything.
What professions will supersede blockchain?
I think blockchain can play an integral role in an economic activity. In a decade, I believe that all social media, business management and even societal governance and political voting systems will be integrated into whatever blockchain is the most efficient and the most decentralized.
What is the main reason for creating your own project?
I am an advocate for freedom. The more free the people of the world become, the more wealthy and the more focused they become on innovation and success. Nearly all thought-leaders in the 2017 investment frenzy of cryptocurrency were newcomers with a get-rich-quick mindset. After years of accumulating and trading Bitcoin, Ethereum and Monero, I was very excited about the Bitcoin Cash fork and began to advocate more vocally online about the real value of utility. I had consistently seen utility diminish, while values rose (artificially) and the visionary thought-leaders of the early days were being replaced by the popularity of YouTube influencers pushing ponzi schemes and bad trading and investment strategies. I met Matthew of “Crypto Traders” on Facebook in August 2017, and we quickly decided that we wanted to run a community that loudly criticized scammers, taught people how to invest and trade wisely, and educated newcomers about the history, philosophy and use-case that made Bitcoin gain value in the first place. Our vision quickly evolved into a full-time trading and training think-tank that has grown rapidly ever since.
Do you think that Bitcoin will start a revolution? Why?
Bitcoin IS a revolution — at least in its true form. I mentioned that Lightning Network opens Bitcoin up to counterparty trust, regulatory compliance as a money transmitter and as a PoS model, it becomes more centralized as it scales up. With the requirements to have an “always on” Internet and power connection, only larger entities will be able to run Lightning nodes full time. These are called “watchtowers,” and they essentially become a central surface of attack for hackers and regulators. A graph, such as this, makes the Bitcoin network weaker and more vulnerable (as well as more profitable to attack) as it grows in scale and value. Long term, this causes deep concerns. SegWit signatures are also problematic at scale, as the segregation of signatures from the blocks changes the incentive model for mining and theoretically allows blocks to be recorded to the chain that were not properly signed; removing the proofs that make cryptography matter in the first place. Peter Rizun of Bitcoin Unlimited explains this masterfully. On the flip side, keeping the entire blockchain secured by distributed and entirely decentralized Proof of Work makes Bitcoin Cash completely unstoppable from a legal, regulatory or technological standpoint. It has the capacity, at scale, to tokenize everything, be peer-to-peer cash for the world as well as manage governance voting and so much more via blockchain. I know Bitcoin Cash is contentious, but I don’t believe that DAGs like IOTA or Hashgraph can be decentralized, I don’t believe complex systems like Ethereum can scale, and I don’t believe that Proof of Stake systems like EOS or Lightning Network can withstand legal and regulatory ramifications or the potential for DDoS attacks. That leaves PoW coins like Bitcoin Cash, Digibyte, Monero and a few others that can scale while remaining decentralized on chain. If the world sees the value of these things and builds DAPPS that remove counterparty trust, then we will indeed see a revolution! If we only care about “HODL” and “lambos,” then it’s all going to crash on us.
Is there a chance some of coins become more popular than bitcoin?
Bitcoin has lost utility over the last few years. It has become the slowest and most expensive chain to use. Long term, that is going to be a bigger and bigger problem for Bitcoin — especially with other good developers working on amazing projects!
What is your favorite joke about cryptocurrency?
A man wakes up from a ten year coma and asks how many dollars he owes for his medical bills. The nurse says, “What’s a dollar? You owe 0.000042 Bitcoin Cash!”
Elizaveta Velgus, Blockspoint