Summary: I talk about the mental game of investing, particularly as it applies to crypto markets. Subscribe here and follow me to get weekly updates.
While it’s been a dark year for crypto, there’s an incredible silver lining: regulation is coming.
Many in the crypto community will disagree this is a good thing. They think regulation will stifle the industry, that crypto wants to be free.
Well, we see where that’s gotten us: the collapse of Terra, 3AC, FTX, and many others.
There’s another narrative going around that it’s centralized exchanges that are the bad guys, that only decentralized projects can be trusted.
Except they’re only as trustworthy as their code. And we’ve seen how trustworthy that is: the list of hacks and bugs is too long to mention.
I’m still a big Blockchain Believer, but I also see the writing on the wall. The litany of crypto failures this year mean that regulation is coming. It’s inevitable.
And if you can’t beat ‘em, join ‘em.
Of course, there are good laws and bad laws, and we can only hope the laws regulating crypto will be good ones. This industry has had five years to build a powerful lobbying force in Washington and make significant political donations, so we can hope the laws will be better and wiser. Time, I hope, has worked in our favor.
But overall, regulation is a good thing because we will finally understand the rules of the game. And that will allow crypto to flourish.
To explain why, let me go back to the first big Crypto Winter of ’18. Actually, let’s go back to…
The ICO Summer of 2017
Back in 2017, we weren’t naming the crypto seasons yet. If we were, we would have called it “ICO Summer.”
Everyone was launching Initial Coin Offerings, which boy oh boy looked a lot like Initial Public Offerings, but tied to a token instead of a security.
I’m pretty sure this made them unregistered securities.
But man, it was an exciting time. (If you weren’t there, my book captures the spirit of this…
