Crypto Q&A

We regularly get questions from readers, as well as from viewers of our monthly webinars. Here are some recent ones.

Question: “With crypto markets selling off recently, are you still bullish on blockchain?”

Answer: The short answer is, Yes. But I offer that with the caveat that you should be wary of asking a barber if you need a haircut. Most of the time he’s going to tell you that you do.

The longer answers is that I’ve made a deliberate shift in my career, based on the belief that this technology is going to be at least as impactful as the internet. That’s my view. And so yes, I am as bullish as I’ve ever been on this technology.

As for cryptocurrency prices, those are a function of markets—and human fear and greed. That’s not unique to Bitcoin (BTC-USD) or cryptocurrencies or blockchain. It happens in every single asset class. It’s a normal part of the growth of any asset, and so recent price weakness has not deterred me one bit. Obviously, I feel a lot better when Bitcoin is at $20,000 than when it’s at $6,000. But in terms of entry points, I feel more comfortable getting into a brand-new, fast-growing ecosystem that has sold off 70%—there may be more value there than one would find in the same technology after it’s gone up 100% or 200%. So yes, I’m still very positive on this sector.

Question: “Do you still think 90% of Initial Coin Offerings (ICO’s) will go to zero? Do you believe the ICO market is dead?”

Answer: I’ve said publicly that I believe 90% of ICOs will go to zero, and I think that’s a fair estimation. But to be clear: that is not a knock on ICOs. It’s just simple math from venture capital. I view ICO’s as start-ups—very early stage start-ups, or even seed-stage. Some ICOs may only have a white paper behind them, which merely outlines a concept.

In the venture capital world, 90% of the ideas don’t work out, and even if they may be good ideas, they might be too early, or management can’t execute. A 90% failure rate is a very normal venture capital type of ratio. So yes, I still stand by that.

1 2 3 4
View single page >> |


Blockchain technology and cryptocurrencies are subject to several risks which should be considered when evaluating an investment that provides exposure to this sector. The Rex BKCM ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.
Comments have been disabled on this post.