Ric Edelman Returns to Rowan to Talk Cryptocurrency and His Book
Financial expert Ric Edelman spoke to students last Thursday, October 20, about the ever-changing crypto and blockchain economy against the backdrop of the “Crypto Winter” that blockchain investors are currently experiencing in 2022. .
The Edelman Financial Services figurehead has spent more than 35 years in the industry and has written 12 books. His most recent post, “The Truth About Crypto,” detailed his vision for the future of this revolutionary technology and how careful Americans should be.
If anyone was dazed by the idea of bitcoin or other cryptocurrencies, Edelman’s hour-long presentation at Rowan’s Business Hall left little room for misinterpretation.
“We have all heard of [bitcoin]”, Edelman said. “Very few of us own it, and even fewer are able to explain what it is. So I’ll do it for you.
Its main point of interest stems from the difference between the current trust industry of the US economy and an authentication-based economy. His argument about why the trust market is obsolete points to trading intermediaries and their tendency to inflate prices for unnecessary causes, particularly the real estate market.
He went on to detail how an authentication-based marketplace can operate on recently developed Distributed Ledger Technology (DLT), blockchain-style software that is open source and instantly cryptographically authenticates ownership or sale. . This would eliminate the middleman from the transaction.
According to Edelman, this technology is “the greatest technological innovation since the Internet”, and bitcoin was the first product opened for sale on a DLT.
He described how the immediate benefits of cryptocurrency can be seen in the nation’s largest businesses. By having a secure way to send money internationally, wire transfers are a thing of the past and big companies like Walmart are starting to install Bitcoin ATMs in stores nationwide due to business efficiency. constant.
“You can donate money to charities with Bitcoin. You can donate to political candidates. Universities are increasingly allowing students to pay their tuition with it,” Edelman said.
The investment professional is unconditionally aware of the opponents of new payment technology and consistently advises holding only 1% of his investment portfolio in cryptocurrency. Edelman explained how, due to the current Crypto Winter, the value of bitcoin is currently unknown and speculative estimates are generating misinformation in the community.
Non-fungible tokens (NFTs) offer the most colorful future for crypto investors. NFT coin changers promise a virtual reality experience with customizable, one-sided avatars, a product driven by Meta’s new frontier – the Metaverse. With the inherent nature that NFTs have no real value today other than claiming ownership of digital art, the controversy stems from an asset being held specifically on speculation, both monetarily and ideally.
Roman Glenn, a junior business student, watched the presentation at a table next to an array of dishes available to the public in the main hall of the business hall.
“I think bitcoin definitely has some utility,” Glenn said. “I think if more people use it as a form of trading rather than a speculative asset that will go up in value, then I think it will be more valuable.”
Edelman notes that one of the best benefits of blockchain technology is that it is “not a centralized database.” The current centralized online market system is extremely vulnerable to hacking, as all of a platform’s data is stored in one place. Yet governments, including the United States, are using bitcoin and a decentralized database to their advantage.
In early June 2021, Russian hackers managed to break into the database of the Colonial Pipeline, a huge gas and oil artery in the United States. The database is responsible for major economic importance in the eastern part of the country. Pirates shut down the entire pipeline, causing gas prices to skyrocket for affected communities. After a week, the hackers sent a ransom note demanding $4.4 million in bitcoins.
“Bitcoin is anonymous. It’s digital and it’s fast,” Edelman said, explaining why bitcoin was the currency of choice for these hackers.
But as quickly as the money left the pockets of the pipeline, the FBI found it.
“They paid the $5 million in bitcoins to an anonymous address. It took the FBI two weeks to recover the money. Because digital money leaves a digital footprint and the FBI was able to trace it,” Edelman said.
This, Edelman explained, is the main reason governments around the world are starting to work with bitcoin and other blockchain technologies — because digital fingerprints are traceable and can create an economy where money thefts and banking are becoming forgotten symptoms of a digitized market.
Although a detailed lecture from a professional can dispel many doubts about cryptocurrency, some students may have rules similar to Glenn’s.
“My parents are completely against it right now. So they’re kind of telling me not to invest [in crypto]”, said Glenn.
Edelman followed his presentation with an opportunity for students to receive an autographed copy of “The Truth About Crypto,” his novel with a more nuanced and detailed look at the crazy world of cryptocurrency.
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