Blockchain-based Machine Learning Marketplaces — Fred Ehrsam

An analysis of BTC fundamentals

Disclaimer: This post is not an endorsement to either buy or sell Bitcoins. I am simply attempting to outline the reasons why there is inherent value in Bitcoins, as well as the risks that come with investing in a crypto-currency. In full disclosure, I personally own and use them, but only a very small portion of my overall portfolio which I would be ok if BTC went to 0 tomorrow.
Purpose: I’ve been seeing a lot of doom and gloom (as well as irrational exuberance) in a lot of posts lately, and a lot of people saying this or that with no evidence or fundamentals to back up their claims. So I wanted to put my thoughts and experiences [more about me below] out there in the hopes that people actually serious about utilizing Bitcoins (BTC from here on) might find this information helpful, as well as to connect with and solicit thoughts from anybody else that’s done research on the future of BTC. Also mods: I searched through old posts and the FAQ but couldn’t really find anything like this, so let me know if there is a more appropriate place to post this. I can also add hyperlinked sources to this to make it a reference document if there is interest.
Summary/tl;dr: The fundamentals underlying the intrinsic value of Bitcoins haven’t changed. In fact, they continue to improve day-by-day, as merchant and user adoption increases. As long as this trend continues, and certain risk factors - see below - are minimized, BTC will eventually become widely accepted as a currency.
That being said, you should never “invest” more money than you are willing to completely lose, or money that you would otherwise need for living expenses. Otherwise, you are gambling. (I put “invest” in quotes because I believe BTC are currently far too speculative to be considered an “investment.” This may change in the future, but the technology is still so new, and there are so many unknowns, that it should not be considered anything more than a speculative investment at this point.)
This has happened before and it will happen again: This week hasn’t been good for those holding Bitcoins. In fact, if you invested in BTC anytime in the past year, I’d say it’s been a pretty shitty year, period. But the thing is, we’ve seen this type of thing in financial markets before, almost exactly to a t, and how they tend to play out. There have been various bubbles of all shapes and sizes throughout history, and the run-up in prices earlier this year, was no exception. However, unlike the critics, I believe BTCs are different, as there is significant intrinsic value in the BTC network and BTC as a value store - which I outline below.
I also think it’s useless to speculate about the direction of BTC in the short to medium-term (I would argue the price adjustment has been a good thing for the long-term), so to me the only meaningful way to analyze what’s going on is to examine the fundamentals (apologies if a lot of this is basic, but I wanted to cover all the key points as I saw them):

Value:

So I’ve briefly outlined above some pretty clear reasons why there is inherent value in BTC, and the reasons why I personally am optimistic about the long-term future and will continue to use them. That being said, I’ve also identified several primary risk factors that worry me as a long-term investor, ones that all holders of BTC should be aware of. Please, if you know or can think of any others, reply or PM me so I can add them to this list:

Risks:

I could go on, but those are the major value and risk factors I see. If you have anything to add, please feel free.
So, in the context of everything I said above, I’d like to talk about what happened this week in particular:
I believe this week’s price movement (as of me writing this, has been a 25% drop) is a result of several factors:
  1. News that US Dollar is very strong
  2. Capitulation: I don’t have the ability to do Technical Analysis on BTC right now, but just eyeing the 1-year chart, it looks like $400 was a key support point for the price of BTC. Once it broke through that, psychological barriers were broken and selling cascaded.
  3. Russia and China potentially banning BTC
And that’s it. That’s all I can find about Bitcoins in the news. The value fundamentals I listed have not changed one bit, and if anything, the rate of user adoption has increased as more people are learning what it is.
Which is why I’m excited about the future of BTC. It’s a product that I use and like, and see tremendous value for. This week’s sell-off just means I can buy more.
About me:
In a past life, I was an equity research analyst responsible for due diligence, fundamental/technical analysis, and making recommendations to the PM on which stocks a certain mutual fund should buy or sell. This meant reading through a lot of annual reports, financial statements, 10-K, 10-Q, shareholder calls, etc… My primary influences were Warren Buffett, Philip Fisher, and Ben Graham. If you recognize these names, you’ll probably guess that I was a value investor1 , and you’d be right. The fundamental premise behind value investing, for those that don’t know, is that you can find companies that are trading at a discount to their “true” intrinsic value, and thus can make money by buying the stock at a low price and selling when the market has realized the fair value of the company and the price has subsequently gone up. This is essentially how Warren Buffett built Berkshire Hathaway and became the world’s richest man (for a short period); his strategy has since greatly evolved, but this was the core philosophy he used for a long time.
1 Utilizing this strategy, our fund bought a significant stake in AAPL when the price per share was less than the amount of cash per share the company currently held (split adjusted something like ~$2 per share when we bought). It hasn’t all been a bed of roses, we’ve made some not-so-great investments, but that’s a story for a different time :)
Edit: Paragraphs within bullets? How do you do them?
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Blockchain in VR with Philip Rosedale and Fred Ehrsam Fred Ehrsam, Coinbase - Bringing Digital Currency into the Mainstream - Clip Coinbase's Ehrsam on Bitcoin and the Future of Blockchain Bitcoin's Regulatory Nightmare Is About to Get More Frightening Is Bitcoin the Future of Money? (Full Session)  Interactive 2014  SXSW

*03,24,2018* 4:3 :: Bitcoin Miner Usb. Bitcoin mining group " Bitcoin exchange rate chart history " Bitcoin mining from iphone " fred ehrsam Bitcoin " Bitcoin ohne anmeldung kaufen " 1 Bitcoin equals to rupees " hd 5670 " Bitcoin lawyer " Bitcoin mining zebpay " free Bitcoin betting " Bitcoin ifttt " program for Bitcoin mining " Bitcoin legitimate use " Bitcoin apple app store " Bitcoin mining Coinbase is the most reputable bitcoin exchange in the world that was founded in 2012 by Brian Armstrong and Fred Ehrsam. Coinbase has headquartered in San Francisco, California. The Coinbase provides the trading services for Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin with fiat currencies in around 30 countries as this March 13, 2018 by Fred Ehrsam. In the same way Bitcoin created an emergent system with the most compute power in the world through open incentives, a properly engineered incentive structure for data would cause the best data in the world for your application to come to you. Chart from Placeholder. Said another way, they create a direct Coinbase was founded by Brian Armstrong and Fred Ehrsam. Today, the platform is available in 32 countries worldwide. As of May 2017, the exchange had 7.4 million users. It’s also a regulated and insured exchange. GDAX and Coinbase have had a (mostly) controversy-free existence. Last Update June 8th, 2020.A Bitcoin Stock Exchange is a trading platform where people can access real-time prices to freely buy, sell or exchange bitcoin with other virtual currencies or traditional fiat currencies such as the US dollar ($), Euro (€) or British Pound (£).. In order to trade professionally and have full access to various trading tools, customers must open an account on a

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Blockchain in VR with Philip Rosedale and Fred Ehrsam

Coinbase co-founder Fred Ehrsam - About Their Bitcoin Wallet, Exchange, And Merchant Solution - Duration: 23 minutes. Naation. 5 years ago; 641 views; Reposted from Newfination. 2013 interview. Interview with Fred Ehrsam, the co-founder of Coinbase, the largest and in many ways most "legit" start-up in the emerging Bitcoin economy. Coinbase manages Bitcoin wallets and transactions ... Fred Ehrsam, cofounder of the Bitcoin Wallet firm Coinbase, said at a public event in New York City last month that becoming compliant in just half the states has so far taken his company "two ... Fred Ehrsam talks about Bitcoin, the first ever global digital currency network and how it is fast, cheap, borderless, and can support small payment transactions. On February 16, 2017, High Fidelity CEO Philip Rosedale and Fred Ehrsam, co-founder of Coinbase, held a discussion in-world about the potential uses of blockchain in VR. Watch it here! _____ At ...

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