Shreyas Chari's tweetstorm: The crypto space needs to do a better job of marketing itself to the world
- By Pierre-Alexandre
March 26th, 2019
Cryptocurrency enthusiasts already know that Bitcoin and other digital currencies are revolutionary. However, there is still a lot of work to do to market them and push towards their global adoption.
Lack of pure data negatively affecting the crypto space
Shreyas Chari, a derivatives practitioner, machine learning and crypto enthusiast, recently conversed with an endowment manager where they discuss the current issues plaguing the cryptocurrency space:
First in a Series of conversations with No-Coiner Old world finance-— Shreyas Chari (@ShreyasChari) March 25, 2019
Top 20 University Endowment Manager:
Me: What would it take to get you to go to 10bp in Bitcoin as an asset class?
Me: Follow others when they do?
EM: Brand shock if something goes bad...
Rome wasn't built in a day. These things take time. Maybe a generation... https://t.co/58YvmzOQrs— Yaniv Feldman (@yanivf) March 25, 2019
The endowment manager believes that legitimacy is fundamental if he is to give BTC as a 10bp as an asset class. At the moment, not everyone understands the technology or what it stands for. The outside world is only interested in those investing in cryptos at the moment, and the fact that prices are down by 80 percent since their all-time highs.
Nobody understands the technology or what it stands for. All everyone is convinced of is that only idiots invest in this thing. Being down 80% is the ultimate ridicule— Shreyas Chari (@ShreyasChari) March 25, 2019
Me: Even if it went from zero to 4000? That's pretty good by any metric. The whole point of the thing is it's..
Despite the positives recorded by the crypto space over the past decade, the absence of accurate data continues to do more harm. The recent report by BitWise Asset Management showed that 95 percent of Bitcoin’s trading volume is fake. This type of revelations seems to strengthen the point of those who are either against cryptocurrencies or don’t understand it:
volatility is actually a positive till it gets to adoption like any other SoV. Anyway what else?— Shreyas Chari (@ShreyasChari) March 25, 2019
EM: No pure data. I got an email today from someone saying "I told you so" on a presentation written about how 90% of the volume data is made up. This guy knows I like Bitcoin..
The endowment manager pointed out that the lack of pure data makes it very hard to present a case for Bitcoin. There is the need to increase transparency in the crypto space, and failure to do that would only lead endowments and other forms of investments staying away from digital currencies.
hence likes to rub it in...doesn't help making a case for it. We need better data on how this thing is actually transacted, what's the value in it and how it's created. No one will touch it till then. Endowments are very political and they'd rather invest in the last garbage..— Shreyas Chari (@ShreyasChari) March 25, 2019
...long short factor nonsense in public equities because there's enough data around it, regardless of how effective it is— Shreyas Chari (@ShreyasChari) March 25, 2019
Me: Measurement is as important as the actual use case or underlying value...
EM: Probably even more...I don't agree with it but that's the reality
The endowment manager agreed with Shreyas Chari that measurement is important; sometimes it is even more important than the underlying value of an asset. While that is not a great feature, it is the current reality, and the crypto space would have to ensure that accurate data are provided as that would boost people’s confidence about Bitcoin and others.
Me: So if the education factor would be taken up by 10x and a cogent case for it's value as a positive convexity asset with correlation benefits could be made, with regulation, saying here's a custodied US regulated asset with insurance, then? ...— Shreyas Chari (@ShreyasChari) March 25, 2019
Currently, the headline carried by large media houses regarding cryptocurrencies is mostly negative. The issue of hacking, data manipulation and failure of some projects capture the significant headlines. So even if Bitcoin is to achieve the 10bp, it wouldn’t matter very much so long as the media talks negatively and immaturely about cryptos:
( Me basically saying if everything works then can you see a world where you get to even 10bps...they run billions so it's not trivial)— Shreyas Chari (@ShreyasChari) March 25, 2019
EM: Headline risk is huge. All the news outlets keep talking about hacking or failures etc. 10 bps is not the point....
It could be any larger number. It's binary risk on headlines given that most of the commentary sounds so immature. We'll have to carry tht into every meeting and fight for it....— Shreyas Chari (@ShreyasChari) March 25, 2019
..It's probably better to go to 1% than 10 bps at that point if you have to put up with all that stress but it's really a circus show now isn't it.— Shreyas Chari (@ShreyasChari) March 25, 2019
Me: Can't argue with that, commentary is all over the place. However some good sources of data and insights are there...
However, with good sources of data available, the commentary on Bitcoin could change, and cryptocurrencies could be seen in a new light. Chari noted that there are some excellent sources of data and metrics such as Coinmetrics and MessariCrypto:
and improving every day, like @MessariCrypto @coinmetrics— Shreyas Chari (@ShreyasChari) March 25, 2019
EM: Am sure there are but they are nowhere near our radar because it's a very very small market ( there were more very's but I cut them out) and no one really cares yet enough.
While the endowment manager acknowledges this point, he added that the market is currently small to capture the attention of endowments and none of them care enough about cryptos.
Concl: Crypto land is like the rebels pissing on each other, taking pot shots at the death star while their singularity cannon lies unused. Lots of wood to chop but less shrill yelling back and forth and collaboration to get off zero is needed.— Shreyas Chari (@ShreyasChari) March 25, 2019
A lot of venues are doing this, just needs to be better marketed.— Shreyas Chari (@ShreyasChari) March 25, 2019
Bitcoin is revolutionary we know, keep talking to every one you can and bring em over! More to come...#bitcoin
The cryptocurrency sector needs to do more to educate the outside world about the revolutionary features of Bitcoin and other digital currencies. While there are some who already do this, better communication and marketing are required to help change the perception and understanding of most people regarding this new market.