Investing in the Most Promising Asset Class - Crypto Assets
We have Shahar Abrams. And we are going to talk with Shahar about crypto. And I think everyone has questions.
He’s passionate about helping my clients form, plan, and execute effective crypto investment strategies hand-tailored to their personal and financial goals.
Shahar Abrams is a former blockchain industry professional with experience leading enterprise blockchain deployments at IBM. He is one of the few people to straddle the “traditional” enterprise blockchain world and the more well-known public-blockchain space also referred to as crypto.
In this episode, we’re discussing…
[1:37] His background and how he discovered the blockchain and bitcoin
[5:40] What exactly blockchain is and what it means
[9:43] Why makes Bitcoin have value
[13:05] About the ledger, who can access it, and how it is controlled
[16:12] How safe and secure are Bitcoin’s transactions
[18:13] How these crypto firms are mining, making money, how do they work, what’s in it for them and what are doing?
[20:31] How the transactions work and how you can earn % of interest on your wallet
[23:02] What’s the difference between cryptocurrency names?
[25:14] About his website called Road to Babylon
[30:09] His consultations and how he can give people a plan and strategy to invest in Bitcoin with the course he just built
Shahar Top Tip’s
“A blockchain has actually been around for a while idea of a blockchain is that cryptographically linked, chain of data, where every piece of data we put, it's a database. It's just a fancy kind of database. But every piece of data we put in this database; we cryptographically link it to the data before. And so, if anything in the data changes, it breaks. So, for this reason, blockchains are said to be very secure, very tamper-evident, and thus somewhat tamper-resistant”
“What gives any asset value I would say at the very fundamental level is trust, people's trust in the asset that it's worth something that it has some use. So those things drive the value for these types of assets in with Bitcoin or other crypto assets. I would say what gives Bitcoin value is the fact that you can trust it. Because we don't know how much gold there is in the ground. But we all know how much Bitcoin there is at a given point in time, and how much Bitcoin there will ever be. And we can never make more. And it's actually more difficult to counterfeit. And if someone were able to counterfeit a Bitcoin would not no longer have value”
“Bitcoin literally is the single most secure record of data that we have ever created in humanity. It's the most immutable secure way of storing data possible, because of its decentralized nature, and the amount of computing power, that's behind the network as a whole”
“And mining on Bitcoin and proof of work is the process of you know, basically brute forcing a math problem, right, so doing lots of operations again and again on a specific algorithm called Sha 256. And right now, there is around a few quintillions of these operations happening per second on the Bitcoin network per second. So, quintillions of hashes per second, every second of every day on the Bitcoin network. That's what is behind bitcoin. When people have what gives it value? Well, that's the security mechanism of it at play”
“And nowadays, there are really good interfaces. For wallets that make it super easy, where you can just put in what you want to send, you'll put in the address you want to send, and the wallet does the rest, right? Some of these wallets in fact, when you hold your crypto in these wallets, they, in fact, will pay you interest, they'll pay you passive income on your crypto, much like a bank would you know, for your deposits, except like, 10 to 50 times more interest”
“All of my bitcoin that I hold in my wallet, I earn upwards of 3% per year on all of my Aethalium that I hold in my wallet, I earn upwards of 5% per year on and all of their there another type of crypto coin called stable coins, which are just digital crypto representations of something like a US dollar"
“The difference is the characteristics of the network. So, Dogecoin has much fewer miners, it has unlimited supply right now. So, there's no plan cap supply for Dogecoin I think every day, there are about 14 million Dogecoin being mined, and that'll continue indefinitely. And what you have to ask when you're thinking about, which Cryptos to buy, is what network you want to kind of be a part of”
“Bitcoin really stands out in this regard, it has the most hashing power, the largest network effect, I think in crypto now, because we are talking about networks, we're talking about investing in networks. The most important thing is network effect, because the larger the network effect, the more users there are on the Bitcoin network”
“What I try to impress on people is if you pull back the curtain, there's a lot of value going on. And there's a lot of interesting stuff going on, it's moving very quickly. And most, I think you're also right, that most people jump in and don't really know what they're doing. In fact, 95% of people fall into that category, that they're investing in stuff. In fact, they've never used it, they don't know, a third of you know, what we just talked about in terms of how it works. And in my opinion, that's a recipe for disaster”
“I think anytime you invest in something that you don't understand, it's a recipe for disaster if you look at any serious investor, all the best investors in the world, the one thing that I'll tell you is they don't invest in things that they don't understand, right, they'll never do it. So, I don't want people to be you know, I think it's an incredibly promising space, I think it's a massive investment opportunity, regardless of what type of investor you are”
Resources from Shahar
ABOUT SHAHAR ABRAMS
Shahar Abrams is a former blockchain industry professional with experience leading enterprise blockchain deployments at IBM.
He is one of the few people to straddle the “traditional” enterprise blockchain world and the more well-known public-blockchain space also referred to as crypto.
He’s passionate about helping my clients form, plan, and execute effective crypto investment strategies hand-tailored to their personal and financial goals.
He draws on his years of experience as a crypto investor and professional in the blockchain industry (at IBM) to provide on-demand insight and assistance to clients of all backgrounds as they navigate this new and exciting space.