ShearShare Investor Debunks 5 Crypto Currency Myths

12/20/2017 09:06 pm ET Updated 2 days ago

“An ICO is often confused with fundraising. This is a total misconception! ICO is not just a mechanism for fundraising, but a way of distributing a token to as many as possible in the network, to the benefit of the early adopters. “

I had the pleasure of interviewing James Sowers from Crypto Specialist LLC. James was an Early investor in Bitcoin, Ether ,Litecoin Stellar Luman, Omise Go , Qtum , Lisk , EOS, Populus , Cardano, Stratis, NXT and Waves. He is also an experienced ICO advisor and a writer for Cryptodaily.co.uk and ICO crowd. I wanted to pick his brain on the climate of the current crypto environment.

Gene: Tell us about your background? How long have you been involved in the crypto currency ecosystem? And what makes you an expert? 

I was abandoned at birth and grew up in a poor neighborhood in Baltimore, Maryland. I started out buying something for $,1 and selling it for $2. I got into Bitcoin in 2013.  In 2016, Lisk, Straits, Waves and finally Ether. In 2017, I participated in several initial coin offerings and started advising ICOs. I’m an advisor on a few completed projects including Coinlancer and an number of ongoing projects including Healthnexus and Gizer. I’m also an angel investor in startups Chirps Chips, Forte Fit, ShearShare, Strypes, Elle Box, the Superbloom Network, and others. On ICO Bench, I’m rated as a blockchain and ICO expert for being a thought leader, ICO/Blockchain advisor, and for my experience acting as an adviser in several successful Initial coin offerings.

Gene: Tell me about the most interesting crypto project you have ever worked on?

I will tell you about the projects that I can currently publicly talk about (hint something big is coming). Caviar which provides instant diversification for real estate debt and crypto currencies, powered by an algorithmic model and profit sharing in ETH.

Gene: What is your opinion on bitcoin? Is it still a good buy? What is your predicition on the price of bitcoin in late 2018?

Hard to say if we are a in bubble and if so how far along it could go to $1mm USD before the bubble bursts! You never know when the wave will stop. You can only hopefully ride the wave until it ends.

Gene: What ICOs should we keep on our radar?

Gigecoin is the Task Grabber of the Gig economy. I think this one will surprise a lot of people. They have had a very successful private sale.

Gene: What coins are still a good buy in your opinion? Why?

I think everyone needs to do their own critical thinking, read the GitHub and if the tech and the probability of future network effects make sense, then consider participating. I think that Stellar Lumens are not widely recognized by the crypto community at large to date. The Ethereum network—if they figure out a way to securely scale transactions with speed—could be a decent long term bet.

Gene: We all know that when a new coin hits a large exchange like CoinBase it has some real potential to skyrocket in value. What coin do you think they will pick up next? 

Hard to say, I have heard they are considering picking up 3 or 4.  Maybe Ripple, Qtum or IOTA.

Gene: What sort of government regulations do you think we can expect to see in 2018? How will it impact the crypto industry?

The government will probably apply a new version of the Reeves Test to ICOs to determine if something is or is not a utility token. Maybe they’ll call it the Bitcoin test, meaning if you could use Bitcoin to transact on the network then why do you need this token and a utility. Also, there could be the Blockchain Test: do you really need blockchain to do this or is this just a way to jump on a hot sector to raise money. Did the company already have customers and a working blockchain before the ICO?

Gene: What are 5 tips that you would offer to someone just getting started and why. (Please share a story or example for each, would be great if you could record a video as well.)

  1. Independent and critical thinking is essential to long term success. Many people ask what crypto or Ico should I buy into or how high is Bitcoin going? The truth is no one knows these answers. People should do their own research, learn as much as they can and make a decision based on their own personal thesis.
  2. Bull markets make everyone seem like an expert. There have been a lot of crypto wealth created by being in the right place at the right time, that being said, the ability to be prepared based on your own personality and style puts you in the situation to create your own luck. Take feedback from your environment and change your assumptions accordingly
  3. Do not confuse blockchain (the technology), with any individual crypto currency or ICO. We are where the internet was in the early 90s, but things move much faster now and more exponentially. Once we have the marriage of AI, quantum computing software and blockchain, we may reach the singularity. I can foresee a future in which a blockchain-based ID might replace our SSN and possibly even track us. Eventually, all currency could be crypto, and we may have a basket of currencies as the global reserve currency. Money will be an instrument of change in the next decade. Crypto money will be made and allocated.  How this plays out will determine the future of society.
  4. The true reason and benefits of an ICO often are misunderstood by the general public.  An ICO is often confused with fundraising. This is a total misconception! ICO is not just a mechanism for fundraising, but a way of distributing a token to as many as possible in the network, to the benefit of the early adopters.
  5. The future value of a protocol token is in its ability to have massive network effects. What if Moore’s law and Metcafe’s law applies to the Ethereum network, the Stellar network or even to the price of the Bitcoin protocol itself?

Gene: What inspires you?

Changing the world in the new digital revolution.

Gene: If you could spend 24 hours with any person (alive or not), who would it be and why?

Alive, Jeff Bezos – His relentless pursuit of creating the everything store. Dead, Leonardo Da Vinci- His relentless rigor.