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The Chief Information Officer of the platform CEX.IO Ltd. Jeffrey Smith has given an extensive interview to the Bitcoin News about the innovative approach of the company, evaluation of Bitcoin and reasons behind the hurdles on the way to global acceptance of the virtual currency.
CEX.IO service is a service having no analogs or competitors at present time. The description on the homepage is sophisticated enough to explain the operating principles:
“We are the first exchange that offers you an opportunity to buy GHashes and avoid all the usual problems you can face when buying mining equipment, like the usual delays in delivery, breakage losses, the need for a sufficient power supply or cooling devices, and many other things, that you may have encountered.”
As the founders and owners of the company were the pioneers working on mining hardware, they can be considered at specialists providing information at first hand. Gained experienced brought them the idea of the platform fulfilled in January of 2013.
The principle is easy – the company established mining sites with the required hardware, but users can trade capacities they have in possession. The exchange can be done for Bitcoins, Litecoins and Namecoins. The location of the machines is not revealed, but the headquarters are in London, UK. The most users origin from the USA, but promotional activities increase the amount of Polish users, placing the country second.
Mr.Smith described the main advantage presented:
“Our core advantage lies in the unique scheme of joint GHS Trading and Cloud Mining. The purchased mining power can mine new Bitcoins (and some other altcoins, thanks to merged mining), while users trade on the CEX.IO exchange, gaining profit on the price difference.”
Although the platform is just a Beta and improvements are made constantly due to intelligent feedback of users, the service copes with the load.
Jeffrey Smith has also spoken on the role of Bitcoin in the modern economy and finance. He stated:
“We believe that Bitcoin is neither a short-term issue, nor a threat. It is an extremely advantageous long-term alternative to fiat currencies and various payment systems.”
Also he sees no borders, because the currency provides opportunities from long-term investments to everyday use during the shopping routine. Mr.Smith puzzled by the mistaken attitude of many officials. According to him prohibitions are wrong, research is crucial. He said:
“The fear of decentralization is what is harming the Bitcoins economy, making it more volatile. However, there is no doubt that Virtual currency is the future of finance.”
The current status of the virtual asset has many limitations and only strong supporters in the higher echelons of the society might contribute to required changes. Just now the investments can be made, but Mr.Smith advises to do so only in cases of strong belief in Bitcoin.
Jeffrey Smith underlined the often mentioned problem of cryptocoins – the lack of education even by common users. He claimed:
“Not all users have the proper knowledge of the Bitcoin protocol and how it works, and sometimes it gets messy.”
It can be changed:
“Bitcoin needs some strong figures in PR, Media and communication. Hopefully CEX.IO will be able to make Bitcoin more social, understandable and representative.”
Even after some criticism, existing in the environment of the Bitcoin Foundation, Mr.Smith values high their work and promotional activities. He draws the line of further work with traditional banks, being to closed and reserved for natural innovations as Bitcoin.
The CEX.IO also is not going to terminate development and thinks about introducing fiat currencies, scrypt mining and works on side projects. Knowing about the professionalism and experience, the society waits for nearly futuristic startups. The Coin Telegraph is going to report on any news from the company.
Interview of Jeffrey Smith given to Bitcoin News
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