I saw the crypto future once – I see it again today

On 12 April 2013 I wrote an article for The Daily Reckoning Australia. Today the Daily Reckoning is known as Markets & Money. But back then I’d been working with Port Phillip Publishing for around three months.

Southbank Investment Research didn’t even exist then. I wasn’t living in the UK then, I was still in Oz. And no one in the UK office that you hear from today knew who I was.

The reason I bring up 12 April 2013 is because that was one of my earliest published pieces on bitcoin. It wasn’t my first “awakening” to bitcoin. That came about three years prior. But it was a public record of my thoughts.

Here are a few excerpts from that 2013 article…

It’s my firm belief physical money, coins and cash, are on the verge of extinction. Not just that your ‘paper money’ will exist in digital form, but it’s only a matter of a time before the primary global currency is a ‘crypto-currency’. A crypto-currency is a currency like Bitcoins, rooted in cryptography and created digitally. More on that shortly.

 I also think we might just be at the beginning of a whole new monetary system, one controlled by communities of people, a peer-to-peer regulated system.

 In finance, it’s a given that old antiquated business models can’t survive unless they innovate and evolve. And one of the most ancient, old-fashioned systems in operation is the monetary system.

Sure there are fancy financial tools like MBS’s, CFD’s, derivatives of derivatives, monetary easing, and a whole raft of other complexities. But simply, economies are driven by demand and supply. And money is just an intermediate in financial transactions.

Now I don’t know about you, but I’m sick of unpredictable markets, governments printing money to buy things they can’t afford and incurring debts they’ll never pay off.

Not to mention stealing money from hard working people. It just makes me wonder how long society will put up with it?

The key question when it comes to the monetary system is, ‘Is there a better way?’ With the world in economic limbo, there’s a reason why we should seek an alternative system.

Obviously precious metals like gold and silver are alternative ways of storing wealth, because historically we’ve attached value to them and they’re a finite commodity.

But as for your money in the bank…have you ever wondered what it really is? I can tell you that it’s not sitting in a vault so you can just go and pick it up all at once from your local branch.

It’s really a bunch of binary numbers, a whole heap of 1’s and 0’s that exist on computer networks and servers.

What’s important to understand is that this new wave of crypto-currencies is not too different from how your money currently exists. But what makes crypto-currency more appealing is a central bank can’t just come along and ‘print’ more of your crypto-coins and devalue your wealth.

So what does the future of money look like? As technology and innovation advance, so does the way we transact, bank and deal with money.

That’s just the opener. But as you can see, it was clear to me there was a revolution in play. And I’m still convinced that this revolution is yet to really get going and deliver. Everything we have seen so far, the hype, the enormous gains, the mania… is all just a prelude.

The article finishes up with me explaining,

Bitcoins might just be the alternative non-government financial solution the world has needed, particularly over the last 5 years.

And I see a future where a crypto-currency (likely Bitcoins) will be the primary global currency. Others will exist and sit alongside Bitcoins. Already there’s a RuCoin which is a Russian evolution of Bitcoin, Terracoin and LiteCoin. All are various crypto-currencies which are used, stored, traded like normal currency. Bitcoin is just the first.

But the current problem which will hamper the progress of these crypto-currencies is instability in the price. It’s difficult to go and buy a pair of shoes with Bitcoins when literally 2 minutes later you might have been able to buy 2 pairs.

No one knows exactly what one Bitcoin is actually worth.

For a crypto-currency to thrive, it needs to detach from being linked with a cross paper currency altogether. If Bitcoins were only exchangeable with Terracoins, we might actually have a legitimate currency system. It would weed out speculators and possibly enable some stability in the crypto-currency markets.

Businesses are slowly but surely accepting crypto-currencies as legitimate payment, more are coming on board every day. Already there are hundreds if not thousands of businesses accepting Bitcoin, Litecoins, Terracoins and RuCoins as payment.

It will only take one big global corporation like WalMart, Apple or Virgin to accept one of them for us to have the start of a whole new financial system.

Why am I showing you all this today? Well it’s a simple reason. Credibility.

There are plenty of people out there claiming to be experts on crypto. Most aren’t. Most came to the party sometime around the middle of last year. Sure they might know a lot now, but they’re still green. They haven’t “lived” the crypto markets like I have.

And they’re not the kind of people you’d want to lead you into battle.

The other thing is, I’ve seen what these crypto markets are capable of. I’ve seen the long-term potential of bitcoin. And I continue to see its long-term potential today.

However, bitcoin isn’t really what gets me excited about this space right now. Sure, it’s a crucial part of the whole revolution. But it’s only a fraction of the revolution’s full potential.

The development, innovation and expansion of crypto today is like nothing I’ve ever seen. Day in, day out, we are seeing incredible projects come to life. These are the next “Amazon”, “Microsoft” and “Google” of the coming years.

We’re seeing crypto projects launch “initial coin offerings” and “token sales” to bring these breakthroughs to life. It’s one giant, thrilling creation event.

Not just technology creation either. But wealth creation. I’ve never been so positive and so excited about the future of crypto. 

And I’m even more excited about it now, than I was back in 2013 with bitcoin.


Sam Volkering
Exponential Investor

Category: Cryptocurrency

From time to time we may tell you about regulated products issued by Southbank Investment Research Limited. With these products your capital is at risk. You can lose some or all of your investment, so never risk more than you can afford to lose. Seek independent advice if you are unsure of the suitability of any investment. Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697. https://register.fca.org.uk/.

© 2020 Southbank Investment Research Ltd. Registered in England and Wales No 9539630. VAT No GB629 7287 94.
Registered Office: 2nd Floor, Crowne House, 56-58 Southwark Street, London, SE1 1UN.

Terms and conditions | Privacy Policy | Cookie Policy | FAQ | Contact Us | Top ↑