| Dear Reader, While there were dozens of great insights and takeaways from the SIC 2018, there was one that completely blew my mind. Top money managers Mark Yusko and John Burbank both announced that they are shifting their respective funds to focus on blockchain and cryptocurrencies. You might be a crypto-skeptic. That’s understandable given the large swings in the price of bitcoin and the “get rich quick” mentality of some of the participants. But when two of the world’s smartest investors change their businesses to focus on one trend—you need to pay attention. As Mark said: “I haven’t met one serious investor who, after actually doing the work—the research into the possibilities of crypto, the problems it solves, the costs it eliminates—is not fully convinced that this is the future.” Maybe you haven’t taken the time to understand blockchain and cryptocurrencies—and that’s okay. Both Mark and John believe these trends are only beginning, and that the real opportunities lie ahead of us. Having listened to both of them discuss their research, here are just two points that changed my perspective. | “Every industry in the world is going to be touched by blockchain. It will disrupt all capital markets, and financial institutions, long term, won’t have a role.” –Mark Yusko |
Today, blockchain and cryptocurrencies are disrupting all types of industries—including the ones you invest and work in. Take banks, for example. During his presentation, Mark gave examples of companies that are already rendering banks’ role obsolete in services such as currency exchange, remittance, and real estate transactions. But Mark—who manages $1.5 billion at Morgan Creek—said the big opportunity is in the “tokenization” of financial assets—a trend that will further hurt banks. | “I believe [blockchain and cryptocurrencies] are a new form of finance. The finance industry is going to be changed by blockchain. The biggest things are ahead of us.” –John Burbank |
You may wonder why John, one of the world’s top “macro” investors, has turned his attention to this new asset class. Simply put, John believes that in the next 5 years, these technologies will revolutionize every industry in the world. And that’s where he is investing his money. Seeing highly successful investors like Mark and John move into this space leads me to believe that blockchain and cryptocurrencies can no longer be ignored. At the very least, you must understand how they are going to affect the industry you work in, and the companies you have in your portfolio. You are probably thinking, “So where do I start?” Given that Mark and John both delved deeply into blockchain technology and cryptocurrencies just last week at the SIC, I think their presentations are the best place to start. And you can access them with your SIC Virtual Pass. In addition to watching both Mark and John’s presentations, you will also get instant access to the cryptocurrency panel and around 20+ hours of first-class sessions from the conference. If you want to understand how these technologies are changing the entire financial landscape, get your Virtual Pass now. Your excited about game-changing technologies analyst,
John Mauldin
Chairman
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