Crypto Edition #1 – Michael Pole: Crypto & Blockchain 101
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Michael has been a metals bug for a long time, and he is still bullish for that sector. He was working at Barclay’s in 2008 and witnessed the Lehmann collapse. Interest and development in the cryptocurrency space has been increasing and is beginning to upset the finance industry. It’s difficult for companies and governments to want to adjust to a changing market. This is allowing small companies to disrupt the existing status quo.
Recent price action in crypto is quite normal as the sector is new and volatile. There are risks with using and handling crypto.
He discusses several different cryptocurrency projects that are promoting practical ideas. For example, there are also new cryptos that can handle far more transaction volume and others like Ethereum allows for the creation of smart contracts. You can think of these as programmable money. Some of these blockchain solutions are used to create Initial Coin Offering Tokens which can help companies start, raise money and fund their projects. These work similar to company shares.
A central tenant of blockchain technology is how they eliminate counterparty risks. Blockchains can be used to permanently securely store any ownership record which reduces the need for third parties.
Financial regulation has a place, and they often claim to be protecting investors but are protecting the status quo. Many of these new ICO tokens are being classified as securities by the SEC and is dis-enfranchising developers from working with the United States. A lot of money will enter the crypto space once a model accepted by securities regulators.