84. Bitcoin and Cryptocurrency

For everything that’s been said about Cryptocurrency, the one thing you never hear it called is boring. When its price shoots up, it’s talked about as the opportunity of a lifetime to make huge profits. When its price collapses, it’s dismissed by many of the same people who loved it in better times. But what is Cryptocurrency, and what determines its value? Vince and Professional Institutional Investor and creator of The Integrating Investor Seth Levine discuss those questions and more on this episode of CFO at Home.

Key Takeaways

• Bitcoin/Crypto Currencies are:
• • Decentralized Databases, no one “owns” the database
  • Ledgers/Digital Records of “Smart Contracts”
  • Based on a powerful technology (Blockchain) that this still discovering it’s practical uses (think the Internet of the 1990’s)

• Crypto was seen as a disruptor to the existing banking system; sidesteps existing regulation 
• Crypto price increases are currently driven in large part by speculation and momentum, not by wide adoption as a currency.   
• Big movement in Crypto towards DeFi; Decentralized Finance; using Crypto to decentralize finance. Supposed  option to our current “corrupt” centralized banking system 
• Thesis of Investments (why you invest)
• • Value - Utility Value; good business at a good price, business introducing a product that will change its fortunes, etc.
  • Momentum - All about trends; buying because the price is going up.

Resources

• Integrating Investor

Ways to contact/follow:

•  @sethlevine2 - Twitter
• The Integrating Investor - Instagram

Contact the Host - vince@thecfoathome.com