This interview originally appeared on The CoinFront on December 11th, 2014. The original source is now defunct, and I was the original author.
We’ve got it pretty good here in Canada’s Bitcoin space.
We’ve got more Bitcoin ATMs than any other country per capita, the regulations being considered aren’t too draconian, and we’ve got not one, but three reputible Bitcoin exchanges: CAVIRTEX, Vault of Satoshi, and QuadrigaCX.
Editor's note: CAVIRTEX and Vault of Satoshi are both defunct now.
The CoinFront sat down with QuadrigaCX’s CEO Gerald Cotten to discover more about what it takes to run a successful Bitcoin exchange.
How did you get into cryptocurrency in the first place?
Prior to the rise of Bitcoin, I was working with e-wallets and centralized digital currencies. Bitcoin seemed to be the evolutionary next step in this space.
And what was it that got you interested?
A major issue with other digital currencies is centralization. Bitcoin’s proof of work, public blockchain, and decentralization are aspects which piqued my interest.
There are so many opportunities within the Bitcoin realm. Why did you choose to operate a Bitcoin exchange?
During the initial planning stages of QuadrigaCX, there were very few options to buy and sell Bitcoin in Canada. The first Bitcoin ATM had yet to launch, and the exchange industry was essentially a monopoly with exceptionally high fees. We wanted to provide a better option to those who wish to buy/sell/trade bitcoin.
When you launched, there were already two well-established Bitcoin exchanges in Canada, CAVIRTEX and Vault of Satoshi. What made you think you could compete with them?
When we began development on QuadrigaCX, CAVirtex was the only bitcoin exchange in Canada. Vault of Satoshi launched their trading platform two months before we launched ours. I felt that our team of professionals with direct experience in this space would be able to offer superior services to better serve Canadian Bitcoin users.
And where did the name QuadrigaCX come from?
A Quadriga is an ancient greek four horse chariot that symbolizes triumph and victory. CX stands for Coin eXchange.
Your platform exchanges only Bitcoin-to-fiat transactions. Why haven’t you included any altcoins?
We have considered adding altcoins in the past, however there are numerous pitfalls of accepting altcoins that aren’t widely known. Unlike Bitcoin, altcoins change frequently and experience occasional forks. This creates a challenge and greatly increases the workload of developers who need to constantly keep up with numerous fast changing technologies. In addition to that, the popularity of Altcoins seems to switch on a near daily basis.
Are there any altcoins you think stand out from the rest?
Right now I’m very interested to see how Ethereum plays out, however I wouldn’t consider that an alt coin. I think we are going to continue seeing more and more Bitcoin 2.0 projects rather than traditional alt coins.
You operate out of both Toronto and Vancouver. Which city do you think is more Bitcoin-friendly?
In the beginning, Vancouver was definitely more Bitcoin friendly. There are numerous establishments located around that city which accept Bitcoin, which is something that we’re still lacking in Toronto.
With that said, the Bitcoin community in Toronto has grown dramatically during the past year. The Bitcoin vibe in each city varies quite dramatically, but I do consider both to be Bitcoin-friendly.
Where do you think the best opportunities are in the world of cryptocurrency right now?
While ease of use has definitely improved over the past year, I think there are still opportunities to make Bitcoin more accessible to the average person who lacks the advanced technical skills that are common among the majority of current Bitcoin enthusiasts.
What would you tell someone new to the Bitcoin space who wanted to get involved?
I would suggest that they read as much as possible about Bitcoin. There is so much to discover, I still learn new and interesting things about Bitcoin and blockchain technology in general on a daily basis.
A few months ago, you and I talked about your new fleet of 30 Skyhook Bitcoin ATMs and how you planned to launch them across Canada. How many of them have you launched at this point?
We have met our goals for Skyhook ATM launch across Canada, including one in Toronto at Dueling Grounds near Bloor and Dufferin, and expect to have a few two way BitXATM machines popping up during the next few weeks.
What’s coming up next for QuadrigaCX? Do you have any interesting plans in the works?
We have quite a few exciting plans in the works, which we expect to launch during Q1 2015. We generally like to keep things quiet until they launch, and then make a splash.
Have you got your hands in any other cryptocurrency-related ventures?
I’m always interested in learning about new and interesting ideas in the cryptocurrency space, however my primary focus is the growth and expansion of QuadrigaCX.
What do you think the future holds for Bitcoin?
Moon!