Takeways from Consensus 2018 – The Next BIG Thing in Crypto!

Hi guys. In this video today I will tell you my takeaways from Consensus 2018, what are my conclusions, and what is the next big thing in crypto. Stay with me till the end of this video. There will be a contest and something to win. Several days ago I came back from New York, from the Consensus 2018. There were all the movers and shakers from the crypto industry, so we could learn a lot about the current development in the crypto world and about the future, about the trends, about what is going on and what is going to happen next. Let me give you my most important takeaways from this event. Let’s start with the most trivial ones: one of the major roadblocks in crypto adoption is the user experience, is the complicated user interface, the complexity of the technology. On the software front there will be a lot of improvements in user experience, in user interface, and that will drive the mainstream adoption. This will remove complexity and make it easy for the everyday user, for the average Joe to interact with this technology without having to know about this complexity, without having to understand this technology fully, and nevertheless being able to use that technology. Another trend that is going on is, as you know, regulation. Generally there will be more regulation from the big players, from the big countries. It has its advantages and disadvantages. You will see the advantages later in this video. The disadvantage is, of course, less things are possible in crypto, less things are possible in speculation, and it will be more cumbersome, more difficult to speculate. But there will be possibly more opportunities, as you will see. On the other hand, there will be an array of small countries who want to use this crypto opportunity to get investors into their country, to get the burgeoning, growing crypto industry into their country. One of these new kids on the block is Barbados. Keep an eye on these little countries, keep an eye on Barbados, and see this development. If you want to found a company in this space, if you want to go into business in this space, keep track of these developments. The next trend is the interoperability, meaning the interaction between chains. There are a number of blockchains and solutions specializing in connecting other blockchains, in making blockchains talk with each other and work with each other. All of that will play more and more of a role in the future. In the long term, an average user will just use this technology without even knowing on which blockchain it is executing or which blockchain he is actually using. They will be completely interoperable. This is the goal of the industry. The next trend is stablecoins. There have been a lot of rumors and gossip, a lot of bad and good news around Tether. As you know, Tether was probably the first stablecoin in history. But generally, stablecoins will play, in the short and middle term, a major role. Why? Because they will be a stage in the transition to the full crypto world. Between traditional money and crypto money, there are stablecoins. Stablecoin means generally they are pegged 1:1 with some fiat currency (for example, dollar or euro). They represent that dollar or that euro. Whatever you may think about Tether or other stablecoins, if they really are covered by the equal amount of money in their bank account or in their hand, these cryptocurrencies remove the friction of the traditional banking system. If you are a merchant, if you are a normal company right now, you have the choice either – or you can do both – you can have a bank account or you can have a cryptocurrency wallet or several cryptocurrency wallets. The problem is going between these two systems because it is quite cumbersome and quite risky in the execution to change between these two systems right now. For example, in order to buy a cryptocurrency, you need to transfer your money to a crypto exchange, and it may take days for that. It takes fees to process that. It’s the same with a credit card. You need other parties involved in that, and so on and so on. But you could hold that money, instead of in a bank account, you could hold it as a stablecoin that represents the same amount of money in a crypto wallet. Then you can trade with that immediately, or exchange between that and any other currency almost instantly. It is just much quicker, much more efficient, and it just makes much more sense for companies. So in the future, if companies want to accept cryptocurrencies, want to play in that field, want to maybe pay in cryptocurrencies, holding money in stablecoins makes a lot of sense. Or switching from bank accounts to stablecoins. It removes a lot of friction, a lot of inefficiency, a lot of risk from the whole infrastructure, from the whole system. That’s why more and more companies will issue stablecoins. During Consensus, for example, Circle announced that it will issue a stablecoin based on the dollar, and in the midterm, also on other currencies. The next trend is visible in Steemit. Steemit is a social network based on a cryptocurrency. Ned Scott said they were the first to actually noticed that cryptocurrencies can be distributed just like points on Digg. In the future, we will see more and more connection between social networks and cryptocurrencies, and social networks will drive the cryptocurrency distribution and also will drive the cryptocurrency mainstream adoption. The next big player in that space is Kik, with (correct me if I’m wrong) 50 million users. They have issued their cryptocurrency, Kin that is based on that social network or is connected to that social network and will drive the incentives on that social network as well as, of course, the adoption of cryptocurrencies. Other social networks are also playing with that idea to introduce cryptocurrencies involved or based on these social networks. This will be happening more and more in the next month and in the short/middle term. The next thing, for people who invested in ICOs, a lot of these high capitalize ICO projects will fail this or next year, so be prepared for that. Maybe rescue your investments as soon as possible. I was mentioning it a lot in my previous videos. There are a lot of projects that just promise a lot, and they have in their whitepapers not only things that are not implemented, that don’t work, but even hard problems that haven’t been solved yet mathematically or technologically. They promise in their whitepapers to solve these problems. They have raised a lot of money, and some of them – many of them, most of them – won’t manage to provide on their promises. They will burn all their money. So be prepared for that. Last but not least, and probably the most important takeaway and I hope you have been waiting till that moment, because this is probably the most important for investors is the thing about security tokens. What are security tokens? Maybe you know the distinction between utility tokens and security tokens. Utility tokens are tokens necessary to use an application or maybe they give you an advantage in using that application, a discount or something. These are tokens that have a functionality in some application. Security tokens are tokens that are an investment vehicle. They generally give you a promise of giving back to you some profit, maybe some dividend. Maybe this is some equity in some company and so on and so on. The problem until now was that these security tokens weren’t regulated. It was a very risky undertaking to issue security tokens due to all these AML/KYC requirements, and also due to the unstable and unsure regulatory environment, regulatory situation. People were either making sure that their token was really a utility token (meaning not giving away any profits, any dividends) or they were using a lot of judiciary tricks in order to make it possible to issue a token with security elements. All these tokens prove to be extremely risky, not only due to the financial risk of course, that goes together with any security that you use but foremost of all due to the legal risk, because of this insecure regulatory framework. Today, a lot of trends are coming together. The regulatory situation is being clarified, and it is more and more clear what processes you need in place in order to issue a security in different countries. In some countries it is still unsatisfactory; in other countries it is more satisfactory. There are also initiatives to establish global standards for these issuances, for these so-called security tokens. There are also platforms coming that will allow legally safe issuance of security tokens. The thing is, most of the tokens people want to issue are actually security tokens. The security market is a huge market. The traditional stock exchange market, the traditional security market is a $73 trillion market. The utility token market is much smaller. Right now under 1% of all tokens are actually security tokens, but in a frame of 10 years, most of the financial experts say the security tokens will amount to 50-95% of the total crypto market. Keep in mind, the crypto market is growing. So from under, let’s say, $2 billion in security tokens right now, we will go up to probably around $10 trillion in security tokens in 2028-2029, in 10 years. From $2 billion to $10 trillion. That is 5000x growth in that market. So watch out for the developments, for the platforms offering security tokens as soon as security tokens will become available. Huge ICOs, there will be huge opportunities. Kin was probably one of the ICOs that started that process, and there will be more and more coming. Keep in mind, the traditional stock market is $70 trillion. All of these stocks will come on blockchain. Also, there will be a lot more security tokens available due to increased efficiency of the systems, due to removed friction from the system, so a lot more companies will decide to issue security tokens than decided to issue stocks. It will be much easier to handle, it will be much easier to process, and it will be much easier to deal with. The internet turned the world into publishers, and blockchain will turn the world into investors. Thanks to blockchain, the internet will become a worldwide stock market. I can see you liked this video. Give me a thumbs up, subscribe below, and don’t forget to hit the bell button. I talk here a lot about cryptocurrencies, about money, about my experiences with investing in cryptocurrencies. I have been investing in this space since 2015. I am a mathematician and I’ve studied cryptology, so I know what I’m talking about. I talk also a lot about the psychology of entrepreneurship, about how the most successful entrepreneurs in the world think. I have interviewed 28 self-made billionaires and extracted their thinking principles. I talk also about how to do the impossible, about my experiences with running ultra-marathons, about doing the impossible. I invite you to comments what you think about this topic, what is your experience, what is your perspective. Share this video with your friends, with your loved ones. They will thank you for that. I promised you a competition in the beginning. Let’s do the following: share this video on your social media, on Twitter, on Facebook, with a quote from this video or with your comment, and add to that share two things. First, add #thebilliondollarsecret so we can find your shares. The second thing is add your Byteball address. Among the most creative, the most effective shares, I will choose several and will give away some Byteball bytes for them. That’s it for today. Thank you. From Black Forest, I wish you a fantastic day. Let’s do something extraordinary today.

4 thoughts on “Takeways from Consensus 2018 – The Next BIG Thing in Crypto!”

  1. The tech I feel is what is going to drive the next wave, we need something groundbreaking for the news to change in the favor of crypto. I really hope you you are right on the security tokens. Those numbers would be nice 🙂
    In this current market situation I am just kicking myself that I didn't take partial profits. Lessons learned.
    It looks like this could be set in for the summer now, but I am hoping on a bounce.
    As always amazing work. ??

  2. Hello Rafael. Firstly, thank you for posting your thoughts. It seemed you were a little less upbeat than usual with this report? Regardless, It has certainly made me reappraise my small crypto investment strategy.

  3. Hello, sir. You may have discovered that crypto is essentially outlawed in New York. That's not a very creative environment. It's certainly not where the future of something can be openly discussed. If, for example, you tried accessing an exchange during this conference, you had to use a VPN. For your protection, of course. 🙂 So don't be fooled. This was about the future of captured crypto. That's why it was all different people (than those you've seen at Anarchapulco, for example).

  4. I have transferred Byteball Bytes for the winners of the contest in this video.

    The winners in the contest in this video are:
    [email protected] (Twitter) – 100,000,000 Byteball bytes – LWC5LDCF7XCTWF7S3SPQVOOLLIGVFMSK

    [email protected] (Twitter) – 30,000,000 Byteball bytes – NFVYZAVTI2PEBNVO6RFNWXXEIPY4AV7L

    -Stefan Burford (Facebook) – 20,000,000 Byteball bytes – LWC5LDCF7XCTWF7S3SPQVOOLLIGVFMSK

    Congratulations ! I invite everybody to participate in contests in the recent videos. We will soon choose the next winners

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