Crypto-pocalypse, with Preston Byrne – [Invest Like the Best, EP.72]

My guest this week is Preston Byrne. Preston is vocal critic of crazy prices and projects in the world cryptocurrencies. His background is in the legal world and also as a founder and former COO of Monax, which made the first open-source permissioned blockchain client.

As Preston says, he is a “blockchain without bitcoin” guy, who believes that this crypto mania will end in some sort of apocalypse for token holders and ICO issuers.

We tackle several issues, from his broad skepticism of crypto assets, to the potential regulatory reaction from major governments, to types of coins like stable coins, which Preston views as analogous to perpetual motion machines.

Please enjoy our conversation and for any crypto investors out there, let me know if this conversation affects your opinion of the investing prospects for cryptocurrencies.

Hash Power is presented by Fidelity Investments

Links Referenced

The Bear Case for Crypto

Hash Power series

Zero Hedge

Preston tweet on Reverse network effect


Show Notes

2:12 – (First Question) –Ponzi scheme vs pyramid scheme vs Nakimoto scheme


5:29 – Why there are regulatory challenges to cryptocurrency

5:33 – The Bear Case for Crypto


9:59 – Who are the most influential people supporting this and how are they swaying the regulatory minefield on this issue

10:28 – Hash Power series


13:23 – Looking into the idea of a digital asset and the difference between blockchain and the token itself


16:09 – What about the idea that cryptocurrency’s only feature is that it’s censorship resistant


18:39 – Why cryptocurrencies become less usable the more successful they are

18:59 – Zero Hedge


21:04 – Why can’t we rely on offchain solutions to solve the scaling issue


22:29 – The idea of bubbles and what happens next in this one


25:41 – What are the incentives to build technology to support cryptocurrencies


29:23 – Explaining Ripple


31:21 – What would precipitate a massive reversal in the inflated valuations of cryptocurrencies


34:52 – Understanding reverse network effects

34:36 – Preston tweet on Reverse network effect


37:45 – The principles behind Stablecoin


42:20 – What has been the greatest lesson that Preston has learned about blockchain he wish he knew when he first got started


44:05 – How embedded will blockchain be by 2024/2025


45:12 – ICO’s, why Preston is not a fan and if there are any positives to them


50:20 – What are the conditions under which these things will be viewed legally.


54:00 – Preston’s history owning cryptocurrencies


55:35 – What has Preston most excited in the space


59:02 – Utility settlement coin


1:00:36 – Why the fascination with marmots


1:02:10 – What to reference before getting started with cryptocurrencies


1:04:03 – Understanding supply chains in block chain


1:07:14 – Some smart people on block chain to follow


1:08:24 – Kindest thing anyone has done for Preston