In what is the first of a new series of interviews, I will be chatting to eToro’s most successful Popular Investors to find out what makes them tick. Over the weekend I spoke to Elite Popular Investor Jay Smith about his outlook for the cryptoasset sector, what he’s looking forward to and what got him into investing.
What got you into investing in cryptoassets?
Like most people, I heard about Bitcoin from the price appreciation. But it was the efficiency as a medium of exchange and the idea that we can have a currency controlled by the community that drew me deeper. I read the whitepaper a few times and what struck me was that it’s like an extension of “the cloud”. Tokens are stored on a ledger on the internet that nobody controls. There really was nothing else like that.
Since then, the development of smart contracts got me even more excited – the potential for fully decentralized, permissionless services.
Where do you get your insights from?
These days I tend to stick with the major cryptos, but I found some great books by well-known figures in the space. Generally, I get most of my information from Twitter and Reddit these days. Those are the places the community spends most of their time. Any interesting news finds its way there very quickly, usually.
What is your outlook for cryptoassets? Which are you most excited about? Which are overhyped?
I’m very bullish on “currency coins” like Bitcoin and Litecoin, but also privacy coins like Monero and Dash. My favorite altcoin is BAT – Basic Attention Token.
There is a middle ground between those with good potential and those that are overhyped. For me, Ethereum, Cosmos, Tezos, Cardano and IOTA – all big smart contract platforms sit in this category. To have no exposure here could mean missing out on something huge, but there is still a lot of work required for these projects to reach their potential, and inevitably some never will.
The most overhyped coins for me are mainly the ICO projects. Most of them are now dead. Some other projects I think remain overhyped are projects like EOS, NEO and the Bitcoin fakes like Bitcoin Cash and Bitcoin Satoshis Vision. The first two have shifted the goalposts and failed to deliver on their original promises. The last two are quite simply pointless. They do not differentiate enough from Bitcoin, and use misleading marketing to remain relevant.
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