Tales from the Real Vision Crypto (w/ AK)


AK: Here in Real Vision, we’re not exactly new to the
crypto space. Over the next two weeks, we’re going to show you
interviews with some of the most interesting people in
crypto. Now, we’ve been on this story for almost five years now. And in that time, a lot of things have changed. There’s been a surge in innovation and attention, a huge
market crash, and then of course, a lot of Lambo. So, let’s look at some of what we’ve been locked in crypto
over the last few years. You’re going to see it all in this special episode of Real
Vision’s The One Thing. What’s going on, investors? AK here. So, we said we’d take
you back in time, right? So, let’s go back to September 2014. A few weeks after
Real Vision started, we find cofounders Raoul and Grant sitting in a dark room talking about the death of trust in
an episode called, The Reset. That led to a discussion about how Bitcoin could be
useful. GRANT WILLIAMS: Does Bitcoin have a place in this
framework we have established? RAOUL PAL: I think it’s almost central to the framework,
because of the nature of it being decentralized. Therefore, nobody can manipulate it. Nobody control it.
They can’t print more of it. So, what you have is something very intellectually
interesting, and actually very useful. AK: So, the case for Bitcoin and other cryptocurrencies
was pretty clear even back in 2014. One of the people we interviewed for this week was Barry
Silbert, but this won’t be his first time on Real Vision. In fact, he was one of the first experts who was really
able to dive into the details. This is what he had to say back in 2014. BARRY SILBERT: Bitcoin as a technology, people are excited
about the potential for not just payments and remittance and this new way of moving money around the
world. But the whole concept of this decentralized distributed
trust system that eliminates, completely eliminates the need for any intermediaries, any
fiduciaries, any custodians, and we’re talking about the potential for a complete
revamp of the financial system. AK: This piece was called, The Destructive Power of
Bitcoin. And in the five years since, Silbert has been spot on
about the disruption. Despite the volatility that came with that disruption,
Bitcoin and other currencies have grown immensely. Cryptocurrencies, as a whole, had a market cap of 5
billion back in late 2014. Today, they have a market cap of 250 billion, that’s a
5,000% increase. And along the way, from five to 250, they made a stop at
750 billion in market cap. That’s a 15,000% increase. Along the way, we had Tuur Demeester, one of the first
guys in the finance research world to talk about Bitcoin as an investment. TUUR DEMEESTER: I’m known as the first financial
newsletter writer to recommend Bitcoin as an investment back in 2012 with the price of $5. I called the top in
Bitcoin in late 2013 at $1100. We had a bear market that ensued and then last August at
$250, I became bullish again. AK: Demeester was an early adopter and as cryptocurrencies
continued to gain legitimacy in the finance world, institutions started to take notice. In 2015, the CEO of
the crypto VC fund, Pantera Capital, Dan Morehead, explained why he left the macro hedge fund world to start
a crypto fund. Here is what he had to say. DAN MOREHEAD: My true passion was always investing in
disruptions, whether they were glasnost in Russia or technology in the States. Anytime there’s a big
disruption, I’d research it and try to invest in it. And Bitcoin is the biggest and most compelling disruption
I’ve seen in my career. And so, I’ve decided to put all my energies into investing
in Bitcoin. AK: So, the disruption was so big that successful hedge
fund managers were drawn out of traditional finance and into crypto. But
disruption is deceptive and not everyone is a bull. John Dwyer joined us in 2016 to give us the bear case for
Bitcoin. JOHN DWYER: The other thing that people should understand
is that this notion of 51% attack. So, if you have control of 51% of the Bitcoin network, 51%
of the power of the network for the miners, this is pretty well understood, then you take control the
network, and therefore, Bitcoin as a network loses integrity. The problem with
that is all you need to do to do that is have sufficient financial capital to control 51% of the network, and an
ideology that you want to disrupt the network. AK: Bitcoin isn’t perfectly secure, which is why some
people have a hard time trusting it. But then again, most computer networks are more vulnerable
to hacking and manipulation than you might think. Still, crypto’s value is undeniable despite the persistent
issues and challenges. Assigning concrete value to crypto assets is a whole
different ballgame though. Here’s Nick Colas discussing how hard it is to value these
things and how he looked at the risk reward ratio in 2017. NICK COLAS: It’s a venture capital type of investment, a
venture capital type of trajectory. And venture capital works in one of two ways. It either
works spectacularly well, or it fails. And we all know that most venture capital fails, so we
have to attach some probabilities to that as well. And that’s why Bitcoin being only a fraction of total
currency outstanding, make some sense, because there’s a very good chance that cryptocurrencies,
particularly this 1.0 version that we’re seeing now, won’t be what we eventually end up with. And so, all of
these currencies, Bitcoin, Ethereum, Litecoin, all the Bitcoin spinoffs might end up going in the trash
heap. But the eventual technology development will still be
robust, there still be a lot of growth in cryptocurrencies
generally. So, I look at it as a very high risk, potentially high
reward, venture capital style payoff investment, versus something that can be put into a traditional asset
class. AK: Okay, so there seems to be some consensus that
cryptocurrencies have value, but the question as always, how much? And nobody can seem
to agree on that. Just look at crypto’s price turn. But what if they’re widely adopted? What could the
implications of that be? Charles Hoskinson, one of the cofounders of Ethereum
explains what the potential changes could be from crypto adoption, and he talks about the potential
legacy of crypto technologies. CHARLES HOSKINSON: So now, what we’ve done is we have
taken a person where their financial life is determined by geography. And
we’ve now put them in the driver’s seat of their financial life, they get to make the final say
about their portfolio and how they store their assets. And by the way, every single one of these assets are going
to be secure, they’re going to be well accounted for, they’re going to
be free of fraud, or a lot more resistant to fraud, they’re going to move at the speed of light, that you’re
going to be able to buy and sell them at a fair price. And there’s no longer a siloing effect that occurs where
your equities live here, and your bonds live here. And your currencies live there and your commodities there. They’re all just treated as the same under the same type
of protocol. And they flow just as fast as email. If we can accomplish that by 2030. I think that the
cryptocurrencies will have become the greatest innovation of the last 500 to 1000 years since the invention of
banking and the invention of the printing press, that’d just be an amazing future to live in. AK: So, yeah, the future does sound great, but it’s going
to take a lot of building to get there. Part of the adoption of these technologies is building
services and products that will be used in everyday life, whether you’re sending money across borders, or just
trying to buy some ramen at 3am. Maxine Ryan talks about why the adoption of these crypto
assets might take longer than what was thought. MAXINE RYAN: We can never predict what’s going to happen
in the future. I think that people who are very idealistic will be like,
well, everybody will be using Bitcoin. You can go to Starbucks, and you can pay with Bitcoin, all
this type of stuff. But there is a learning curve to Bitcoin at the moment. AK: Meanwhile, Dan Morehead and Joey Krug of Pantera
Capital joined Real Vision to talk about regulation and how individuals might interact with crypto
technologies in the future. Krug talks about how institutions may not be part of the
new cryptocurrency infrastructure. Here’s Krug’s response about whether or not he’ll be able
to hold his crypto wallet in a retail account. JOEY KRUG: My way is probably not I think we probably will
see sorts of things where you can buy into an ICO on an alternative transaction facility or something. But I
don’t think we’ll see them on like NASI or NASDAQ, at least not any anytime soon just because I think they’re
such weird assets. They’re still using credit and they’re all very different and so unique that’s really
hard to categorize rise them in any box. AK: Regulation and consolidation are crucial factors to
widespread adoption. Demeester came on again in 2019 to talk about where he
thinks the market is now and where it’s going. TUUR DEMEESTER: To me, this is the accumulation phase
where value investors they come in and the weak hands hand over their Bitcoin to the strong
hands. There’s incredible amounts of developments happening. We
are seeing more regulatory clarity, obviously, because we’re seeing this cleanup process and
in the market happening, which is very positive. We’re seeing way better custody solutions, we’re seeing
insurance happening, just all kinds of things that you want to see for Bitcoin
to become big and boring is happening right now. And I think that’s what’s setting up the basis, building
the basis for the next big rally in the markets. AK: If you look at this chart of the total market cap of
cryptocurrencies since 2010, the picture becomes clear. Over the last decade, you could have made and lost a
fortune speculating and investing in these crypto assets. And despite all this noise around crypto, you still got to
be careful because it’s the Wild West- there’s con men, hucksters and all sorts of thing. Whether you think Bitcoin and crypto assets are the future
or not, understanding them will help you with your process
regardless. If you want help identifying value, cutting the BS and
adding cryptos to your portfolio, then stick with us at Real Vision. I’ll talk to you next
week.

15 thoughts on “Tales from the Real Vision Crypto (w/ AK)”

  1. Stay long bitcoin. Bitcoin security is an impenetrable fortress. When you look into it in detail you'll realize it's pretty much impossible to 'attack' bitcoin and even if it could be the attacks would only have local effects and not bring down the network or impair it on an ongoing basis.

  2. 5:00 The statement shows a clear lack of understanding of the unique genesis of bitcoin that cannot be recreated. Every new coin has an inherent 'founder' problem that won't allow for a truly decentralized alternative to emerge. Bitcoin is more like TCP/IP of the internet rather than an early internet company. TCP/IP has and likely always will be the backbone of the internet. Bitcoin is the same and like with TCP/IP the network effects compound by the day making the chance of being replaced very small. Either we get bitcoin right or we fail as I see it. My money is on bitcoin.

  3. The prices of these cryptocoins are volatile, it goes up and down all the time. They act like it's falling apart. The market is still

    much higher than it was some years ago. If you ever thought about cryptocurrency as an investment, then you’re on your way to greatness. I urge you to listen to what I have to say. Because if you make the right pick you could find your self jumping for joy on top of an enormous pile of cash. Ready or not , a growing number of economies, banks, billionaires are backing this new forms of tender. And once you understand how easy it is to make profit from cryptocurrencies it's easy to see why the cryptocurrency market is preparing to take off. Anything you've seen up to this point is going to be shadowed by the amount of money that is about to come pouring . And for investors who get in before the end of the year , they are going to make it big and earn an unbelievable amount of profit as far as you make the right pick of coin to invest or apply a currency prediction software to help know and select the right coins with value and potential to rise in no time to invest in as digital currencies are going to be once-in a life time opportunity. The only caveat is that you must act quickly and smart then invest with a good and trusted platform to help make the right pick or choice of coins with value and potentials to invest in. Investors who wait idly on the sidelines until the media tells them to 'buy now' are going to lose out on millions and potentially billions of dollars . And if you wait for the media to tell you when cryptocurrencies are safe you'll be losing out a great deal. I am not talking about buying bitcoin alone. I am not here to double or triple my money when I can potentially create 10times, 100times or even 1000times my money investing in ethereum and other new coins which have potentials. In just few months I've made nothing less than $100,000 investing in ethereum and other coins . My rules for buying cryptocurrencies if I want to keep my 98% win rate are thus; The asset must have intrinsic value, The asset must be new, but not too new. The digital currency boom that's happening right now is a once-in-a-life time opportunity. You may never have the chance to make this kind of money this easily, ever again. There are lots of tiny digital currencies that can generate higher gains more than bitcoin and the rest which people can invest in and cash out big. For a successful crypto investments to make the right picks of coins to invest to earn better profits feel free to get in touch. juankendrick00 @gmail .com.

  4. Bitcoin is worthless as a currency until there are bitcoin banks which pay interest. The banks will then have a reserve requirement.

  5. The host has lazy eye and a crooked face. Get a hot chick with a British accent or French (lets mix it up) and you will get 10X in ratings. Saying the same thing!!! Free marketing advice.

  6. The truth is that BTC is controlled by the core devs who are on the payroll of Blockstream, who are funded by AXA to the tune of over $55 million. And Blockstream sells sidechain scaling solutions to make money, so they are uninterested in onchain scaling solutions.

    So Blockstream is going to keep BTC blocks very very small to force people into offchain scaling solutions, which is what Blockstream will sell to the public for a big profit. BTC development has basically been hijacked.

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