Investing in times of chaos - second part

If you haven't read the first part of the review, you can do it here.

Live talk with chanan steinhart, crypto advisor & investor

The talk with Hanan Steinhardt brought several key insights regarding the current state of the global economy and the impact of emerging trends. Steinhardt emphasizes that the current decade will shape the entire century in areas such as technology, environment, and debt-based money.

• One of the notable observations is that the current system is unsustainable, highlighting the need for a change.

• Central banks and the Federal Reserve continue to purchase gold every month, leading to the question of their motivation behind this activity.

• Steinhardt predicts that the upcoming quarters will bring upheaval, forcing the current system to either inflate the market and reduce interest rates or face its demise.

• He also dismisses the notion of BRICS becoming a reserve currencies force, noting that the US dollar remains relatively less tainted despite its flaws.

• The talk sheds light on the gold market, revealing that China, despite its economic power, lacks substantial gold reserves compared to the United States, Germany & France, which collectively hold the majority of the world's gold. In fact, China and Russia together possess only 11% of the global gold reserves.

• Considering the vast amount of money in circulation, estimated at 50 trillion dollars, and the limited supply of gold (14 trillion dollars), Steinhardt argues that the price of gold should ideally stand at around 6,000 to 7,000 dollars.

• The discussion also delves into the impact of the baby boomers on the adoption of Bitcoin. While only 3% of baby boomers have engaged with cryptocurrencies, the figure rises to 21% among millennials and over 30% in younger generations.

• Steinhardt argues that digital gold is preferable to physical gold, suggesting that either the amount of money in the world will decrease (which is unlikely) or the adoption of Bitcoin and other cryptocurrencies will inevitably increase.

• Furthermore, traditional investment options such as bonds, including government bonds, are deemed unfavorable. Protecting the value of money will become increasingly challenging due to its precarious position.

• The demand for real estate is primarily driven by the quantity of capital, which determines product prices. That's the reason why in Cairo demand is higher than in Tel Aviv, yet prices are lower.

• The talk also addresses the nature of Bitcoin as an a-symmetric asset and highlights the potential negative impact of central bank digital currencies (CBDCs) on individual freedom, suggesting a troubling future that combines facial recognition, artificial intelligence, and complex societal challenges.

Hanan Steinhardt's insights emphasize the need for change and adaptation in various sectors, while also highlighting the potential risks and opportunities that lie ahead in the next decade.

Panel discussion featuring Shelly Hod Moyal, Guy Armoni, and Daniel Tischner

several interesting perspectives were shared regarding cryptocurrency's technological advancements, and the investment opportunities they bear.

• Shelly emphasized that as long as people continue to use cryptocurrency as an investment tool, the correlation between crypto and traditional financial markets will persist.

• On the other hand, Guy expressed his anticipation for the decoupling of this correlation once the use of cryptocurrency becomes less speculative and more applicable in everyday life.

• Daniel believes that central bank digital currencies (CBDCs) could serve as a turning point in this regard, potentially influencing the relationship between crypto and traditional finance.

• Despite the current bear market, Shelly noted that it is the first time that a significant number of entrepreneurs are entering the crypto space, building new ventures. This trend is happening despite the decrease in available funds.

• According to Shelly and Guy, Ethereum remains more experimental in nature, although initial experiments have also taken place with Bitcoin. Due to Ethereum's unique culture and consensus mechanism, it has necessitated more speculative trials.

• The next speculative trend identified by the panel is the combination of decentralized artificial intelligence (AI). However, they also acknowledged that this direction holds the most promise.

• The discussion touched on the Molecule project as an example of distributed science, warranting further exploration.

• Guy expressed interest in digital identity and ZK (zero knowledge) technologies for tracking purposes, as well as the connection between digital and tangible assets.

• When asked about what entrepreneurs seek, Shelly emphasized the importance of a strong team, market potential, and a solid business model. Daniel added that motivation, market familiarity, and a background in the field are also crucial. Guy noted that the criteria may vary depending on the stage of the project but agreed with Shelly's points and mentioned Shardeum as a project to investigate further.

• Shelly predicted that multiple currencies will coexist, suggesting that different infrastructures will serve parallel purposes. Daniel emphasized the need to invest time and thought into addressing the challenges and potential risks associated with cryptocurrencies.

• Guy highlighted the value of having multiple currencies for freedom of choice, distinguishing between currencies and tokens, the latter being comparable to loyalty points or airline miles. He stressed that millions of currencies are unnecessary, but rather a means of adoption should be prioritized.
  

The panel discussion provided valuable insights into the evolving landscape of cryptocurrency and emerging trends. The speakers shed light on the potential future directions and challenges within the industry, encouraging thoughtful exploration and investment in this dynamic field.

The convention itself was full of important insights & enlightening comments.

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