In this episode of Hidden Forces, host Demetri Kofinas speaks with Brian Kelly. Brian is CEO and Founder of BKCM LLC, a digital asset investment firm. He is an experienced Global Macro investor and the portfolio manager of the BKCM Digital Asset Fund – a hedge fund focused on digital currencies and assets. Brian Kelly has over twenty-five years’ experience in financial markets and is the author of the book “The Bitcoin Big Bang – How Alternative Currencies are About to Change the World.” He is a CNBC contributor and can be seen regularly on Fast Money.
Our most recent episodes with Chris Burniske on modeling cryptoassets and with Ari Paul on cryptocurrency trading methodologies introduced two foundational frameworks to our audience. This week’s episode with Brian Kelly affords our audience the opportunity to explore both of these perspectives (theory and execution) in a single conversation. Brian Kelly is uniquely qualified to talk about the financial side of cryptocurrencies, but he also provides valuable perspective on how the media is covering this space.
Brian begins his conversation with Demetri by recounting his introductory experience to bitcoin, how he made his first investments, and what he learned in the year he wrote his book “The Bitcoin Big Bang.” The two explore familiar topics like the problem of scalability, exchange and regulatory risk, cash-settled futures and ETF’s, and how bitcoin may fare compared to gold during a systemic financial crisis. Is there any way to measure the intrinsic value of a given cryptocurrency? Can permissioned blockchains compete with public ledgers, or will cryptocurrencies come to dominate the future of software? Besides bitcoin and Ethereum, what are some of the more interesting cryptocurrency investment opportunities out there? Brian and Demetri also cover the recent spike in financial volatility amid this rising interest rate environment. Lastly, they consider how the rise of systemic trading strategies and passive investment vehicles like ETFs may accelerate (or not) a future market downturn.