If NYS Superintendent of Financial Services Lawsky's proposed BitLicense was applied to the Internet in 1994, Goldman Sachs & JP Morgan would be controlling your ability to read this post right now and Google, Facebook and Twitter would not exist
The future of finance has arrived and NOTHING will be the same. Smart contracts as a proof of concept are now no longer a concept. This technology makes it clear why an "investment bank in a wallet" causes banks to fear bitcoin!
These banks derive the bulk of their revenues from non-interest related sources - basically fee income, and then they pay roughly 70% of that out (afer expenses) in compensation. What happens when fees are but below the compensation level?
I foresee over 35% of Wall Street jobs disappearing over the next 10 years, even as traders bring arbitration suits to Goldman Sachs complaining that they didn't get their full $17M bonus last year. One of us is very, very mistaken!
Now that bitcoin has increased in price around 80% since the peak of doom and gloom, Flat Earth Society, can't see the forest due to tree bark blindness short-sightedness, it's time to bust some more Bitcoin myths and move on to what this stuff can really do.
The Bitcoin space is heating up so quickly that not only are hundreds of millions of dollars being funneling into startups, PayPal has introduced a product that actually undercuts Bitcoin payment processors! Uh Oh Visa/Mastercard! Margin compression, here we come!
Bitcoin's competitive environ is already prompting a race towards negative margin, and despite such VCs have dumped nearly $100 million in 3 companies in as many months. Here's what I see coming down the pike...
So, I'm off to the races to raise money for UltraCoin, my uber-disruptive startup, and I come across the resistance of certain parties to take common stock. Now, the standard in the professional VC community is to take preferred stock with a stack of anti-dilutive measures, control premiums and liquidation preferences.
I got into a Twitter debate with Marc Andreesen of Netscape (the inventor of the commercial web browser) and Andreesen Horowitz (the VC fund that financed Facebook, Twitter, Skype & Zynga) fame.
He spit out what was mostly common sense, yet still flew in the face of what is taught in school, most text books and by most B school teachers. Here's how it went down...
1/A few common fallacies about valuation of public and private technology companies:
Facebook has caught the virtual currency religion and we all know how aggressive (as in $19B Whatsapp purchase) they can be when they look at firms to buy. UltraCoin is looking a lot more valuable in this space!
After warning that hardware is dead, my thesis has foreshadowed the slashing of the equity values of Apple, Blackberry, Samsung, Nokia and HTC despite the fact that the sell side has said otherwise. Now I've enabled the whole world to profit on the premise
I bet you the Turkish government can explain the intrinsic value of Bitcoin to Krugman and Roubini very soon as they systematically lose the ability to censor information due to Namecoin and affiliated technologies.
