Bill Ackman believes cryptocurrencies have longevity, and he thinks what we are seeing is typical of new technologies where regulators catch up with the villains making the eco-space more friendly for legitimate businesses.
John Dillinger, the infamous American bank robber of the 1930s Great Depression, wrote to Mr. Ford, ” “Dear Mr. Ford, I want to thank you for building the Ford V8 as fast and as sturdy a car as you did, otherwise, I would not have gotten away from the coppers in that Wisconsin, Minnesota case. Yours till I have the pleasure of seeing you. John Dillinger”
“Bill Ackman believes cryptocurrencies have longevity, and he thinks what we are seeing is typical of new technologies where regulators catch up with the villains making the eco-space more friendly for legitimate businesses”
WEALTH TRAINING COMPANY
Bank robbers quickly figured out that the V8 combustion engine was the perfect getaway car for making off with ill-gotten loot.
Villains were the first to adopt the V8 engine as a tool of the trade, leaving the authorities for smoke in the rear mirror.
The criminal mindset is progressive, analyzing how cutting-edge technology gives them a heads-up from the authorities, who tend to be conservative laggers in adopting new technologies.
But if the US government banned V8 engines in the 1930s, the 1950s pinnacle of American automotive manufacturing, which helped shape the US into an economic superpower, would have been lost.
One aspect of The fourth revolution is the digitization of everything, which also means crime has gone digital.
Today, villains no longer use V8 engines, but instead software hacking tools, encryption, and cryptocurrencies to hide and launder loot across borders at the speed of light.
If John Dillinger were alive today, his tool of the trade would not be a V8 engine but instead crypto blockchain technology.
So imagine if the authorities decided to ban any activity in cryptocurrencies, software development, or hardware server development. What a lost opportunity that would be.
“If John Dillinger were alive today, his tool of the trade would not be a V8 engine but instead crypto blockchain technology”
WEALTH TRAINING COMPANY
Bill Ackman believes cryptocurrencies have longevity where regulators play an active role in keeping the ecosystem legitimate
“The FTX issues are an urgent reminder of the need for regulatory clarity and a real regulatory framework for crypto,” Christian Catalini, founder of the MIT Cryptoeconomics Lab, said on Bloomberg TV.
He added that hype and speculation over the minting and trading of tokens “have generated a massive distraction from building actual products and services that reach consumers, solve actual problems.”
That reflects the attitude shift that the Pershing Square founder has had as he says “crypto is here to stay” comparing crypto’s potential social impact to the telephone and the internet…
“after examining several interesting crypto projects, I began to understand how a token could build intrinsic value over time” – Bill Ackman
“As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies that heretofore could not be created. The ability to issue a token to incentivize participants in a venture is a powerful lever in accessing a global workforce to advance a project,” wrote Bill Ackman
Bill Ackman believes cryptocurrencies have longevity likening the technology to the telephone and the internet, despite the space being preferred by criminals today
“The problem with crypto is that unethical promoters can create tokens simply to facilitate pump-and-dump schemes. It may be that the vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.
Despite crypto’s ability to facilitate fraud, with the benefit of sensible regulation and oversight, crypto technology’s potential for beneficent societal impact may eventually compare with the impact of the telephone and internet on the economy and society.
Initially, I assumed that there is no intrinsic value to any of the tokens and therefore they simply represent a modern-day version of tulip mania without the aesthetic benefits.
But after examining several interesting crypto projects, I began to understand how a token could build intrinsic value over time,” he wrote.
“Helium’s global network of 974k hotspots was crowd created by individuals who purchased and deployed Helium hotspots to mine HNT, its native token. Customers who wish to use the network must purchase HNT and burn it, ie, remove the ‘consumed’ HNT from its total supply of tokens. Users, in turn, purchase HNT tokens to use the network. The more demand for the network, the more demand for HNT.
Given HNT’s ultimately finite supply, the balance between supply and demand yields a market price that increases or decreases over time along with the success of the Helium Wi-Fi network. As such, HNT becomes a valued commodity whose price is determined by supply and demand,” he added,
“Imagine if you could buy a piece of the internet before e-commerce took off two decades ago” – Wealth Training Company
Investors are buying a piece of the network, which is why Bill Ackman believes cryptocurrencies have longevity
Imagine if you could buy a piece of the internet before e-commerce took off two decades ago.
The greater the utility of the network, the more value it is likely to possess. The most secure networks are where high-value transactions will take place, where the evolution of smart contracts will revolutionize real estate conveyancing, and the insurance industry, where central banks will sell directly to bond investors saving millions in broker fees, the latter is already happening. So networks, where code is immutable with the most secure consensus mechanism, are where high-value transactions are likely to occur. The scarcity of the network is derived from the scarcity of resources to build the network, the brute computer power of the network, the energy powering computers, the algorithms, and the intellectual property of the technology.
So investing in a cryptocurrency network is similar to investing in a railroad or a highway. If you can not understand why a business would pay gas fees to develop their digital application on the network, then do not invest in cryptocurrency.
