There are thousands of ways to invest your money, which is why it can be so hard to figure out investing on your own without making serious mistakes. I talked with Kyle Chasse, a cryptocurrency investor and technology entrepreneur, who’s been in the crypto field since 2012. Among numerous other projects, Kyle founded Master Ventures - a Blockchain advisory and think tank. If you are already familiar with our series of interviews dedicated to trading, you might also be interested in this one because today our topic is an investment.
U.Today: It is very nice to see you here, Kyle. Can you tell us why you started investing in Bitcoin?
Kyle Chasse: Sure. I heard about it and I was intrigued. Someone suggested that I read the white paper and I did. I didn't quite fully understand it the first time around, but after a few times I understood the power of it, and that was intriguing. And then, when I saw what happened with WikiLeaks, how, you know, they were able to circumvent the traditional payment gateways into like Julian Assange and WikiLeaks, it became very, very clear how powerful this could be. And if you read the white paper, you understand what Bitcoin is and then you understand that all it has to do is survive and it will increase in value and it is something that is absolutely needed by the entire world. It's money for the people by the people. I just saw the potential in it so I went all-in in 2013.
Image by Master Ventures
U.Today: And what cryptocurrencies are you holding?
Kyle Chasse: So, predominantly I'm in Bitcoin, and then I have some ETH and some other various cryptos. But, it's pretty tempting to diversify into some other alts. And I do have some. I believe I have really strong projects and some others that I want to support as well. I'm not a trader, so I kind of invest for the long run.
U.Today: Can you name some alts you invest in, for example?
Kyle Chasse: Yes. I still have some Bitcoin cash from the fork. Sold my SV. I have Chainlink. I have some coins of projects we worked for before: Elrond, Money On Chain, Splits, Blockwell. These kinds of projects that we've earned tokens from. And I'm also considering a few others. I really like Monero. I haven't gotten into it yet, but I believe there's a need for a solid privacy coin and I think that Monero is the best of them. That's about it. I mean, I've got others, but that's off the top of my list.
U.Today: How did you pick them? Do you have any special principles?
Kyle Chasse: Like I said, most of them are ones that we've earned from projects that we support. First I get a lot of people that apply to join our advisory or get help from us and these ones I truly believe in. But when I'm looking to invest in any other digital assets, you know, I have to compare it to Bitcoin. I have to think about the upside potential, compared to Bitcoin. When you do that, it's very hard to find anything that you believe in. I do a lot of due diligence before investing in anything and to kind of see what's going on I look at the team, what they're trying to disrupt. Most importantly, token economics and if they understand token economics.
So, a lot of people will invest in a crypto without understanding the underlying token or why it might be appreciated in the future or have value. So it's very important to understand the entire project.
U.Today: What are you working on at the moment? Can you tell us about Master Ventures?
Kyle Chasse: I'd be happy to. We’ve kind of shifted to what I really wanted to do, which is a couple of things: build infrastructure and educate. So, I'm doing a lot more public speaking. I've been in this space actively the entire time since 2013. But I had been pretty quiet and privately involved up until 2018 and then I started doing public speaking and conferences and things like that, trying to promote messages and educate people on the proper things to pay attention to. Not just like marketing hype and FOMO and things like that.
So that's one, but really we've shifted as a company to a kind of venture studio or like you said, think tank where we're building out our projects from scratch. We're working on two of them right now, which I am really excited about. So, one of them is House of DAO, which is a crypto blockchain technology, coworking, co-living hub here in Koh Phangan, Thailand which just got blasted to number six in the world for places to live as a digital nomad and number one in Thailand. So I've been a fan of this place for 15 years, decided to move here full time two years ago, and everyone else is now realizing how magical this place is.
So that's one of the projects. The other one is something that's a necessity for exchanges to survive. Now, 97% of exchanges are at risk of going bankrupt. And, the number one problem is liquidity. You have a lot of exchanges and you don't have much liquidity in the entire space. So we're building a 2.0 kind of solution that will disrupt traditional liquidity provision by allowing exchanges to connect on the backend.
One of the biggest problems right now with the exchanges is that they launch, they try to acquire users, a user will go on the platform, and there's no liquidity so their trade won't get filled forever and then they'll leave and never come back. If we don't survive, if we don't build what we're building, we will have a massive consolidation of exchanges and we'll be in a world like we are today where we have one or two major exchanges for every country. They won't be forced to deal with much competition. We're trying to democratize the entire exchange base and encourage healthy competition, which will force them to have the best prices, have a better UX, UI, you know, all these kinds of things.
U.Today: And what products have you invested in that you are most proud of?
Kyle Chasse: I’ve invested in quite a lot in the space. It's hard to say what I'm most proud of, but I think that some of the best investments have been in Bank to the Future, which is kind of a syndication type platform that gets a lot of really good deals and has been in the space since I think 2013 or something like that. It's allowed me and other investors to invest in a lot of the deals and opportunities that most people don't come across. So, I've done quite a few deals.
Image by Master Ventures
We invested in a project called Eubanks last year, which is now a settled network. About 6 months after I invested in it they made a partnership with Binance, and they have a bunch of other things they're working on. So it was a really, really good decision. I'm really proud of the projects that we work with. I work with projects that are putting out amazing disruptive technology that, I believe, will be dominant players in the space. We kind of named them out earlier, like Blockwell, Split, Elrond, Even foundation or Even network.
U.Today: So, Kyle, what advice can you give people who want to raise money through investing?
Kyle Chasse: It's very difficult right now. It was fairly easy back then, but it depends on the market conditions. We're actually raising money for our projects right now and it's not easy.
Focus on one thing that you want to pitch because if you start pitching multiple different things to investors, you'll lose them. With one thing they will more likely understand what you're doing and then just kind of move on. Then also understand what you're doing. If you have a token, and it’s supposed to be a utility token, make sure that it has true utility and that you have token economics built into it.
U.Today: Okay. I've got one last question. How much will Bitcoin cost at the end of 2020?
Kyle Chasse: So I'm more of a long term holder of Bitcoin. I'm not focused on price action very much. I believe there's going to be a time when all of the institutions, investors, banks, retail traders and everybody is kind of bullish and decides that they should be holding Bitcoin in their portfolios or as a store of value or a hedge against, you know, inflationary, unstable Fiat currencies. And when that happens people will realize just how limited an amount is actually circulating.
If I sell you a Bitcoin, and then I have to go figure out how to buy another one - that's a pain in the ass and I just don't want to do it. Eventually, people will start saying, I'll buy it off you for 20% over market value now. You're going to see everybody start kind of frantically trying to acquire Bitcoin. When people realize what a low circulating supply is actually out there, you're going to have a frantic grabbing for any available Bitcoin and a kind of like a Supercycle where we have just this massive increase.
Okay, so the end of 2020, maybe, I don't know, $50,000. At the end of the next bull run where it kind of peaks out before it drops again I would say something like $300,000. Something like that.