Joney Talks!

Whether you Want to Invest or Not, Crypto is Here to Stay!

In today’s episode, we will speak to my friend Emanuel who founded a Crypto Facebook group back in March (2021)

We have all seen the recent headlines and impressive run-up of Bitcoin and other cryptocurrencies since the end of last year. It certainly got people interested again since the highs of December 2017, and I was looking for someone to shed some light on the recent events.

The crypto space is not only about the Bitcoin price and the headlines, as you will hear many things are also happening behind the scenes that will have an impact on our finances in the coming years. So even if you do not plan to invest, it is definitely a space you want to understand!

PS: If you are a total beginner I would recommend you listen first to the episode I recorded with Ivan (An Introduction to Bitcoin and Blockchain Technology with Ivan) or this other podcast episode from my friend Michelle Jackson: Bitcoin Decoded with Jesse Cramer from The Best Interest (The guest Jesse explains basic concepts very well).

Listen here:

…or listen on Apple Podcasts

This episode is for you if you want to learn more about crypto (i.e. go beyond the mass media headlines), want to know what is going on and where the crypto space is headed.

Key Takeaways:

• Recent Price increase:
  • Bitcoin moves in cycles of 4 years, that is when a halving takes place: Bitcoin rewards for maintaining the security of the network are reduced, and this also cuts the rate at which Bitcoins are mined. This creates a scarcity which can push the demand up and hence the price.
  • Micro strategy pushing it, a wave of Institutional money, and major announcements (e.g. Tesla buying 1.5 billion worth of Bitcoin in February 2021, Visa announced its entrance in the space,…).
  • Unhealthy leveraged trading by retail investors.
• Is there a right price for Bitcoin? 
  • Bold statement: No one knows!
  • Money printing creates inflation and crypto assets are a good way to hedge against inflation.
  • If Bitcoin disrupts gold we could see values such as 500 000 USD (if Bitcoin reaches a 10 trillion market cap and there are 21 million Bitcoins, each bitcoin ≈ 500 000 USD), Emanuel sees the value going up as Bitcoin is deflationary (limited supply). It is hard to put a target or a correct value but if you believe it has room to grow, the best is to dollar-cost average over the long term.
• Could be Bitcoin become a currency? 
  • Bitcoin just became legal tender in El Salvador, let’s see!
• Ethereum
  • The basis of a new financial system: Traditional finance is being rebuilt on the Ethereum network.
  • DeFi: The previous bank fees go to you, and you can get higher interest rates than in traditional finance.
• Trends to watch:
  • Security tokens (asset-backed tokens represented on the blockchain) are still relatively small (=opportunity)
  • Regulations are on their way in Europe, big things are coming: A digital identity even?
  • Develop your Blockchain skills and at least your knowledge: Cryptocurrencies and Blockchain Technology are not going away, they are the future, they are here to stay!

Bonus: History of Bitcoin

Here is a 101 infographic from Paradyn that covers tech developments and milestones from 1982 through 2019.

Who is Emanuel?

Emanuel Erdem is a Fintech business developer, a crypto investor, and an enthusiast. He is also is a crypto community founder and meetup organizer and in his spare time, he is an avid kitesurfer.

RESOURCES 

• Facebook Group: Crypto Financial Independence Europe – FI/RE with Cryptocurrencies
• Book recommendation:
  • Rich Dad, Poor Dad
  • The Bitcoin Standard
  • Crypto Asset Investing in the Age of Autonomy
• Newsletter: Bankless newsletter
• Blockchain courses: Moralis Academy (see review)
• Get started with cryptocurrency: Use this link to get 10 USD worth of BTC as a sign-up bonus on Coinbase.
• Earn free (!) crypto on Coinbase: Coinbase Earn
• Best purchase under 100 dollars: A flight ticket to Berlin!

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