I am wrapping up my time at the FTX Salt Crypto Bahamas conference this morning. And then, I’m heading to the airport and traveling back to Southwestern Florida. But before I trek back to my home coordinates, I wanted to offer my five critical observations from this event. Let’s dig in with some answers to your questions.
How Legit is Cryptocurrency?
Yes, the crypto movement is actually legitimate. I know that many people might feel that they came in late to this opportunity. I would estimate that we’re in just the second inning. The companies that I met this week are going to be the largest technology players in fifteen years. And buying their associated tokens or coins is akin to buying a number of great tech companies back in the late 1990s.
You don’t need to buy a lot. You’ll only need a little bit of exposure to Bitcoin, Ethereum, and others to make a fortune. But it’s going to be a 15-year wait. Be patient, and be a buyer while prices retreat in 2022. You’re not buying the coins… you’re buying the infrastructure and technology. That’s a MASSIVE difference than what we are used to doing in traditional finance.
Who is Investing?
I met a lot of smart people at Crypto Bahamas. Very smart people. I had moments where I thought: “Wow, this person is brilliant.” One person lost $46 million during the Dot-Com bubble, learned his lesson, and turned around and made $560 million during the second tech wave of the 21st century.
There are many people who are ditching careers at massive investment banks or Silicon Valley titans to get into this movement. If they’re willing to stake their careers on this movement… I’m confident. This is the greatest collection of human capital that I’ve witnessed in my lifetime, and they all want this to succeed.
Meeting True Enthusiasts at Crypto Bahamas
I did get a chance to meet Michael Lewis, the author of The Blind Side and The Big Short. But the most interesting conversation came from a chat with a local cryptocurrency investor and hacker who has launched his own project in the Bahamas. I asked him a question that made him smile: “How do I tell who is a serious investor and who isn’t?”
The point was to try to discover people who have been in Bitcoin for a long time and those who pretend to. There are no shortage of people who have told me that they own 500 Bitcoin, but I have no way of knowing if it is true. So, he gave me a few questions to ask and a few ways to frame conversations that can detect legitimacy.
He also said: “You could always ask to see their wallet.” I laughed and thought that was invasive, but after a few minutes, I asked: “Okay, can I see YOUR wallet?” The investor showed me. He owns 2,203 Bitcoin, worth roughly $85 million. He was wearing about a $100 suit.
Collaborative Crypto Community
This is an incredibly collaborative community, and people actively help one another network. I met a gentleman from Scotland who is working on a food security project. He was looking for an investor that aligned with his vision. I eventually found something and made an introduction.
A thought leader from one of the top venture capital groups in the nation turned and thanked me for making that introduction. She then asked how she could help me. I simply said – that as an economy and journalist – I wanted to be able to interview as many thought leaders as I could.
She then asked if I wanted to meet her friends Jack and Richard sometime. “Jack and Richard?” I asked. Jack is the founder of Twitter and Block. Richard is the knight who founded Virgin Galactic and flies around the atmosphere. You can deduce their last names.
What Does the Future of Crypto Look Like?
This sector is on the bleeding edge of technology and represents the global economy in 15 to 20 years. The move away from centralized companies like Alphabet and Meta Platforms will transform wealth, privacy, and opportunity.
However, education is critical. This community talks about blockchain and cryptocurrency and decentralization like they are talking about the weather. There remains a translation problem and a need to go back to square one.
There needs to be education for the retail investors about the opportunities ahead. Fortunately, I happen to have Haven Investment Letter as a platform. So, I can and will break down this massive transformation on the horizon.
In Conclusion of Crypto Bahamas
I had attended previous events in the past around cryptocurrency. At the time, I viewed it largely as a fad. However, I completely understand the technology and opportunity ahead. And I’m extremely excited about all of the problems that decentralization of the economy can solve.
It’s not going to be a straight line up. There will be bumps along the way. And it’s going to take more than a decade for many of these projects to mature. That said, it does feel like we are investing and planning for the future of the economy in a way that rivals the birth of the internet in the late 1990s.
Will Bitcoin (BTC-USD) hit $1 million in the decade ahead? Yes. But it might go to $20,000 first. Patience, patience, patience.