I was on an investor call for a crypto company (Coinstash) doing a crowd funding recently.
I asked two questions. 1)Why would anyone use BTC to buy things when it could cost you an 25% extra in opportunity cost a week later? After scoffing at the question the answer was that BTC isn't considered to be a currency anymore but a preserver of wealth.
2) What happens to the company's business model if BTC falls 80%? The dismissive answer was as we have good trading relationships with the big trading exchanges so liquidity isn't an issue. Later in the call they referred to the 'winter years' of crypto after the bubble a few years ago, so obviously a significant fall in BTC does impact their business model.
What struck me was the arrogance & dismissive attitude of the CEO that they knew everything & that the thought that anyone elses views couldn't possibly have merit.
There's a saying it's not what you don't know that gets you into trouble but what you are certain is true that isn't. Needless to say I didn't invest.
