Curiosity is a very good thing. Apparently, it not only kills cats, of which I’m allergic, (sorry cat lovers), but I find it helps me keep an open mind and expands my understanding of the world. I’ve been surprised how many people have asked me questions about this newsletter, mainly because I didn’t expect anyone to read it, but I’ve loved getting them and talking about the topics raised. Please keep the questions coming, not only does it help me challenge my own assumptions, but I’m also going to regularly summarise some of the most frequently asked. 5 questions/bullets for starters then:
1. What crypto should I invest in?
My standard response to this is that I’m not a financial adviser and any investments you make are your own risk, etc. I think the most useful thing I can do here is give you the questions I ask myself when it comes to any investment:
What’s my reason for investing in the first place? (Make a return, protect wealth, believe in the long-term mission of the investment)
Do I understand what I’m investing in, even at a basic level? Could I explain it to my kids, if not, then I don’t understand it enough?
What level of risk and loss am I willing to accept?
Is this project backed by other reputable people?
Are there any red flags for a potential scam?
A quick scam story, skip to 2 if you want a shorter read. There are sadly a lot of scams in the crypto world. Back in the mania of 2017, there was a craze called ICOs (Initial Coin Offerings). Many companies were being launched on just the strength of a 2-page manifesto and no working product or team. By issuing an ICO they could get funding for their business, some at multimillion £ valuations. One such project that caught my attention was something called AdToken (ADT). Their promise was to launch a blockchain based advertising exchange, to clean up problems of transparency in digital advertising, where money often goes missing. Considering my job at the time, this had an obvious interest, and I was keen to find out more. I discovered the founders were Canadian but were travelling to London and other world capitals to thank early investors and anyone was welcome to a “meet up”, drinks on them. In November 2017, I rocked up at the Maple Leaf Bar in Covent Garden at the stated time, got myself a pint and tried to find the ADT team. In the corner of the bar there were around 20 people downing shots of sambuca and shouting, “to the moon”, I figured that must be them. I got chatting to a few investors, genuine people mostly, although some a little suspect and soon found the CEO. Conversation quickly turned to what I did for a living, I told the CEO I was managing UK media investment at Unilever. His face dropped, and quicker than full fibre broadband, he made some excuse to leave. Big red flag, business creating a product for advertisers doesn’t want to speak to one of the biggest advertisers in the world. I quickly made my exit too and didn’t take my interest further. At the time I met ADT, they had a valuation of $120 Million, with just a manifesto and a flashy website. Today the website has gone, no product was ever delivered but the tokens still exist, and the total market cap is $200,000, down some 99%. Bullet dodged.
Despite that tale, there are still great projects out there, worthy of your time and investment. Keep asking questions and you’ll soon find out what’s good and what’s not.
2. Why are you publishing a newsletter and not just keeping a private blog?
Unashamedly, it’s about trying to help me with a career in the crypto industry. Giving back in some way to the community, by sharing your experience is seen as a good thing and it’s something that I can point prospective employers towards as a sign of my commitment and understanding. I’ve struggled in the past with having a more public voice, and I was very apprehensive about publishing, but I’ve had many great conversations off the back of it and I’ve been surprised at how much I’m enjoying it. I intend to continue, and I’ll try to keep improving it.
3. Is Blockchain like a company?
No but also yes. Blockchain is a technology that I like to think of as a public record of all the transactions ever completed for a certain crypto asset. Bitcoin has its own blockchain of transactions as does Ethereum and others. Confusingly, there is also a company called Blockchain.com, which is a marketplace where you can buy, sell, and trade different crypto assets.
4. What kind of work do you want to do?
I have a belief that crypto will be disruptive for many industries and will play a big role in our future. I’d like to try and leverage my skills in marketing to help the industry grow, whether that’s working for an exchange like Blockchain.com, or for a crypto media company spreading the word about the industry, like Blockworks. Basically, anything that helps further adoption and understanding.
5. Are you a full-time crypto trader?
100% not. I tried it for a while and was very bad at it. Even if I wasn’t, I think the route above would be much more interesting and fulfilling. Plus, the professional traders are in the industry now and I don’t back myself to be able to beat them at something they know much more about than me.
I’ll leave this letter with the news that last week, the president of El Salvador announced on Twitter that they have started mining Bitcoin with clean and renewable geothermal power from a volcano. How cool is that? The idea first came about in early summer and a few months later is now a reality. Incredible things are happening.
Peace, love, and Bitcoin.
Rob
The Bullet. No.5. The Cat Killing Issue.
I bloody love these newsletters, Rob! Your candour and honesty is so refreshing and I’m learning so much about a subject which is hard to articulate and many - including me - are struggling to get to grips with. You write so well and with passion, humility and genuine insight that I can only see an even brighter future for you. Even though I still harbour doubts about the future of Bitcoin, you are definitely helping to turn my head! Keep up the great work, my friend.