EKMH Innovators Interview Series
An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
These past weeks the world has adapted to the coronavirus pandemic, working from home, sheltering place, quarantining and accepting how lockdown can slow down COVID-19’s spread. We are and continue to be thankful to those in the medical profession for their continued determination and perseverance.
In 2016 by CEO Sidharth Sogani founded Block Next Solutions in 2016 with a vision of consulting in Blockchain and Cryptocurrencies. He founded the intel firm CREBACO, Credit Rating for Exchanges, Blockchains and Coin Offerings, shortly after with a mission to eliminate industry scams. In mid-March CREBACO published a Global Market Intelligence Report to analyze the Bitcoin market’s response to the pandemic and the importance of decentralization.
Sogani and I connected via email to discuss his viewpoints on a variety of poignant topics including the new Report, pandemic, importance of decentralization, cryptocurrency, transparency, future of fintech and careers. Our interview follows.
EKMH: What prompted you to found CREBACO? How will CREBACO help enable its clients to better understand blockchain technology, cryptocurrencies, digital asset exchanges and increase investment and productivity?
Sidharth Sogani: I started Block Next Solutions as a crypto investment consultancy. I came across hundreds of projects which were scams. In fact, I was a victim of a crypto scam myself. I realized that there is a huge gap in the blockchain and crypto industry. It is unregulated! This lack of regulation gives enough opportunities for scammers to raise funds from anywhere in the world and disappear with it. We started Credit Rating for Exchanges, Blockchains and Coin Offerings (CREBACO) to recognize quality projects and help Investors, Regulators and Governments to understand project betters and make the right decisions.
EKMH: What is your vision for crypto and blockchain ecosystems and your view of the overall future of fintech?
Sidharth Sogani: It’s great. The current crisis of the coronavirus and recession is making us realize that the centralized system is faulty. Decentralization is the key to the continuous growth. Blockchain and Cryptocurrencies, mainly Bitcoin, brings power to the people and not the centralized regulators like the Federal Reserve.
The Federal Reserve is planning to print 6 Trillion USD to fight the COVID-19 and the recession crisis but the Federal Reserve doesn’t understand that in return, the value of the economy will be sacrificed. It will also prolong the recession period because of the economic damage which is being made. Bitcoin, on the other hand, is decentralized and limited in supply.
When all the banking facilities are compromised due to lack of staff and services, Bitcoin will be still working with the same capacity. You can send money from Iceland to Bora Bora Islands in 10 minites, completely secured, without any paperwork and third party involvement. A global economy is truly global when it has a global currency, not a centralized currency.
EKMH: What advice do you have for leading global teams during periods of instability? Why could decentralization be the answer? Please share your predictions for the cryptocurrency markets. What measures can be taken to help reset and rebound the financial markets?
Sidharth Sogani: It is hard to survive in this market where we are struggling for both survival against the virus and the finances. Per our research, many small businesses don't have cash reserves of more than 2 to 3 months. When people work from home, the productivity of any company reduces significantly but the salaries remain the same, hence the company burns more. When manufacturing is badly affected, even the revenue of businesses drops. In these situations, it is important to be low on inventory for the manufacturing industry.
For tech companies, especially in the Blockchain industry, working from home will not make a big difference as many companies in this space are accustomed to working remotely. Nevertheless, it is still important to be '“in the loop” with employees on an everyday basis, otherwise their performance could be seriously affected. I suggest getting on a conference call every morning to charge the team for the day’s tasks.
During these uncertain times, people will realize the importance of decentralization. For example, we are so dependent on China for our raw materials and finished goods supplies that when China stopped exporting its goods and services, the entire world market started shaking. The automobile companies in Europe have large manufacturing plants, but the raw materials and/or components come from China. Here we see that China had centralized power to dominate the market because of its efficient delivery and price. We must not always look at price, at the same time we must also see the sources of the supplies and quality. If Europe started manufacturing its own components, it would not be dependent on China. Likewise, even the economic situation globally is centralized, and we are witnessing that trillions of dollars are being pumped in the system to combat this crisis situation, but at the same time, the economy is also facing inflation which nobody is accounting at the moment.
Bitcoin is a decentralized solution where inflation is controlled which creates a better economic environment. Currently [27/03/20] all the markets are falling and are struggling to recover. Bitcoin being or non-correlated asset fell down by over 55% and also recovered over 28% in a week's time, which is commendable. No other commodity index has managed to gain what was lost at the same speed.
As we enter into a recession and deep depression-like period in the coming few months, and I believe that Bitcoin will definitely cross 25,000 USD. it is still the best performing asset of the decade. The governments are taking enough measures but from the economic point of view, I believe that this approach is wrong. I think switching to Central Bank Digital Currencies (CBDCs) which offers decentralization and transparency of the revolving currencies in the market should also be an answer to help the financial markets recover. Regulations that accept decentralized payments and digital assets funding should be introduced.
EKMH: In your Global Market Intel Report your address the current financial situation. How can and when can we “blockchainize” manufacturing and financial aspects of our traditional systems after the pandemic?
Sidharth Sogani: Once the pandemic is over, we should first make a new economic strategy in which we must emphasize decentralization and better economic policies to become more transparent. Governments across the globe still have not understood blockchain technology and cryptocurrencies and its potential. Digital asset regulatory bodies should be created by organizations like the United Nations, IMF or the World Economic Forum in order to regulate decentralized funding and digital currencies across the globe. This body would also decide how the implementation of blockchain should be done in the service, manufacturing, supply chain, and other sector verticals.
EKMH: As the employment market shifts, what advice do you have for those beginning fintech or cryptocurrency sector careers? What did you learn (to do or not to do) from your own interview process?
Sidharth Sogani: It is very important to learn both Finance and Technology in today’s world. Basic knowledge of coding and languages is a must for any finance professional today as it enables him or her to have better options. Whoever is planning to start a career in fintech should definitely learn how the tech works in this space. Many people who I have interviewed come from a finance background or are complete techies; it becomes very difficult to get things done with somebody who doesn’t understand business logic clearly. Whenever we hire new team members, we spend at least a month to 45 days to train the new employees before handing them more important tasks.
EKMH: How has your multi-language fluency and cross-cultural understanding given you an edge as an entrepreneur?
Sidharth Sogani: It is more important to know cultures than to know their languages. If we know how the culture works, it becomes easier to sync with the person with whom you are trying to work. As I have traveled to various parts of this planet, I think understanding and learning about cultures has added more value to my ideology than knowing languages.
EKMH: Last but not least, which books have significantly influenced you?
Sidharth Sogani: Execution by Ramcharan
One Minute Manager, by Ken Blanchard and Spencer Johnson
Abundance, by Peter Diamandis
The Power of Your Subconscious Mind, by Joseph Murphy
Rich Dad Poor Dad, Robert Kiyosaki
Zero to One, by Peter Thiel
and of course, The Art of War, by Sun Tzu
**Readers, continue to stay home and take care. If you need to leave the house, do so virtually!
*Disclaimer: The views and opinions expressed in this series are those of the speakers and do not necessarily reflect the views or positions of any entities they represent.
Search below and access thousands of interviews, articles and predictions in the EKMH Innovators Interview Archive… Be a part of the conversation.