The Hidden Value In Crypto (w/ Ari Paul) | Skin in the Game | Real Vision™

Ari Paul, CIO and managing partner of BlockTower Capital, joins Real Vision’s Ash Bennington for a wide-ranging conversation about the future of blockchain and cryptocurrency. Paul unpacks his views on the risks and opportunities in crypto-assets now, and discusses the ways in which he draws on his background as a traditional asset portfolio manager to make better decisions. Filmed on October 23, 2018 in New York.
Watch more Real Vision™ videos:
Subscribe to Real Vision™ on YouTube:
Start a 14-day free trial:

About Real Vision™:
Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today’s markets. Think: TED Talks for Finance. On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.

Connect with Real Vision™ Online:

The Hidden Value In Crypto (w/ Ari Paul) | Skin in the Game | Real Vision™

That’s four in a row, right?
I think so.
All right, Ari. Thanks for joining us. Excited to talk about distributed ledger and cryptocurrency. But first, let’s play a game.
Thanks for having me, Ash. You know, in college, I was a semi-professional poker player. But I definitely wouldn’t be semi-professional at Connect 4.
I think that means I’m going to lose.

We’ll see how this goes.

You’re first. Guests go first. All right, that was– that was going to be my move.
So let’s start at the very beginning. So we know that people have made a lot of money trading these assets. But what’s a real world application for someone who’s not been involved in the crypto space? How are these technologies potentially going to change the world?
The first use case that was the vision of Satoshi was P2P electronic cash. That was actually the subtitle of the Satoshi white paper. And the idea was to have sound money, money that can’t be depreciated by central banks, money that is resistant to censorship, meaning, let’s say I want to send a transaction to a gambling site, or maybe something like Wikileaks. Currently, banks can censor me, or the SWIFT system can censor me. So central resistant, and then last, is also seizure resistant. So it’s an asset that can’t be confiscated, or is at least resistant to being confiscated, where in the US, that might not be that valuable to us. But you imagine a citizen in Russia, or China, or Venezuela, or Iran, or much of the world, where they have to be concerned about corrupt law enforcement or the government itself literally confiscating their assets. So cryptocurrency, the first use case was as money that is more secure kind of in every way than fiat.
Since then, the scope of what cryptocurrency is trying to be has enlarged tremendously. Bitcoin was the first cryptocurrency and was really focused on that sound money use case. Ethereum captured a lot particularly Silicon Valley imagination as tackling a much broader landscape of use cases. So Ethereum is aiming to be kind of a world computer, a platform for decentralized applications.
And I won’t get too technical, but it’s a Turing complete programming base, meaning you can program anything. So any application that can exist, you could theoretically build it. And so some of–
And build it in a distributed way.
Right. And that’s the key part. So something people in the crypto industry right now are puzzling through is what use cases makes sense to decentralize.
So a few examples are, you know, something in the news a lot has been the privacy concerns around Facebook and other large data providers. So imagine a decentralized Facebook, where the user owns and controls their data, where, literally, I get the benefit of software from a company like Facebook that has all of these developers, but they never, ever see any of my data. So all of the data is encrypted. that’s one example.
Near term use cases, I think one that’s powerful is remittances. So right now, people who are of any level of wealth, but it tends to be effectively a regressive tax– people are paying $20 a transaction to Western Union, for example. They want to send $100 from the US to their parents in India, and they’re paying outrageous fees. So cryptocurrency for remittance.



  1. Nothing this guy talked about matters if BTC remains unstable. Until this day, BTC and alike are speculative vehicles.

  2. Proof of work, spending energy in fake work projects, is goofy and wasteful.

  3. Something to think about. BTC uses less then 8% of the power consumption of all US data centers. open your mind. don't believe everything you read. including this. learn 🧐

  4. Btc down even more 😀😀😀 -I love it. Please don't compare this "asset" to USD

  5. Think about the resources that already go into our current financial system. Bank buildings, toll booths, printing presses, computers, commuting by employees and customers. I heard recently that 40% of jobs in America are in the financial sector.

  6. It all sounds so good…but there is no need to sell my stock directly to someone in Japan that is a terrible argument. When there is a bid on the exch.

  7. Wake me up when the DTCC starts using the blockchain. The DTCC is the largest processor of transactions and they have said the blockchain is too slow costs too much and they don’t need a public ledger.

  8. I think this guy may just be the real Satoshi Nakamoto. The way he speaks is almost identical to the thinking of the Bitcoin White Paper. Equivocally passionate and long term driven. Vast knowledge of the financial markets. And just as collected with sound reasoning.

  9. Crypto is what happens when the governments (not just one but yes the Fed is the big one) printed money and dropped it from a helicopter. Some of those trillions that they print ended up in the crypto bubble. It's a bubble.

    Anything that man can make can be made a bubble. Yes Bitcoin as a limited supply technically but it can be forked into so many pieces and there are over 2000 crypto now. Imagine that. That's what happens with cheap money.

    What is the one commodity that is hated?. Precious Metals. No one can make it out of thin air (I am talking real physical metal not paper). Run into one commodity that is down. Not run when the bubble is already inflated. Imagine buying BTC at $20K, it's insane.

    There is a difference when BTC was at $100 and a 90% drop is just $90 for the small timer. It's huge now

  10. If we going to live in forest and fight to survive, no crypto help you out, no eaven gold. Only guns and bullets going to be most expencive!!!

  11. awesome interview. both of you are really intelligent and only time will show what the future holds, but anyway very good vision on the thing to come.

  12. the New world order khazarian mafia uses cryptos to traffick children via the website Backpage com and Trump indicted it and now as the pedophiles are arrested their crypto holdings are immediately liquidated simple as that

  13. This was the first video I've watched from you're channel but it was beautiful. Whenever I'm trying to explain the big concepts and misconceptions regarding cryptocurrency to my friends and relatives I'll reference this video. Thank you, for producing incredible eloquent and well informed content, content which this space desperately needs to balance out the blatantly ignorant and false crap coming from news sources like CNBC.

  14. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. Long will BTC live.

  15. Some are like currency. XRP for instance.

  16. Excellent interview – Ari is well spoken and insightful – TY

  17. fantastic interview. Now where the hell can I buy that connect four? Legit

  18. Intellect is the sexiest asset we have as human beings……..

  19. Ari Paul is an extremely intelligent, well-spoken guy and certainly knows his stuff on crypto, but he also wears a sizeable tinfoil hat!

  20. Crypto is a game changer. Tokenization is a game changer. Literally bound to succeed.

  21. One way to consider a blockchain project is through its market cap. Another way, closer to the real value, is observing the activity on the blockchain. Lots of FUD and HYPE are responsible for "misplaced" capital in the cryptocurrency space. Here, we are observing which project is actually being used by people, which is in our opinion, the best predictive indicator of value you can have. To see who is capitalizing on ownership of virtual In-game assets see below. Buy it on Bittrex

  22. Crypto the WonderDog would love to have you guys on the show sometime! @t

  23. Bitcoin market cap is here BCH=Scam

    BCH SV=Scam

    Bitcoin Diamond=Scam

    Bitcoin Gold=Scam

    Bitcoin Whatever=Scam

    Bitcoin Unlimited=Scam

    Bitcoin XL=Scam

    Bitcoin Classic=Scam

    Bitcoin Private=Scam
    without that the bitcoin can be 18k 😉

  24. Charlie Day if he didn't huff paint

  25. These you idiots are going to loose everything on this Bitcoin jumbo jumbo.

  26. This downtrend has been very good to me. Impulsive moves to
    the downside are quite easy to spot. I have made life-changing money from this
    market. I don't know why everyone is so fearful. They just need to play with
    market momentum! An old trader Adrian Markus from Denmark told me when I was starting
    out: don’t fights the trend make money from the momentum. I am just sitting on
    the sideline to make a momentum play when the opportunity presents with 50X
    leverage. all I can say is thanks market you have made my year. The only
    problem is no Limbo for me but I don't have a mortgage anymore. I started 3
    years ago and I have made more money in the correction that I did going long
    Adrian Markus is a professional in trading and has an excellent way of making
    you achieve the best. I love the consistency of his strategy. He is the only
    one I trust, for more assistance reach him @gmail(Adrianmarkus48)

  27. bitcoin is fiat…

  28. Great interview, one on best food for thought!
    Ari mentioned that bitcoin could be attacked by massive hashing power or propaganda, but it has all means to defend.
    If you want to see true power of freedom, check out where you can save your thoughts on bitcoin blockchain and make it uncensorable forever!

  29. Crypto's Ed Snowden

  30. How can one lead an interview on cryptocurrency if they can’t understand a game of connect four

  31. If crypto doesnt work out than I will hodl my botl

  32. Anyone else find this guy to come off as a fraud?

  33. How do you get a private key?

  34. I’m stubborn and I want to keep using the dollar and get ripped off and have my money taken away from me. I don’t like BTC because I’m lazy and didn’t take the time to understand it. I’ll miss out on a great opportunity and then bitch in 10 years when it goes to the moon about how life’s not fair because I didn’t have the balls to make a tough decision to invest my money.

  35. ari ari ari ari ari ari…ari arrivederci

  36. I’m long crypto but short Ari

  37. should ask Ari how the bet went

  38. Ari Paul is an idiot, and every capable crypto ppl knows. Dont bring him again. Now Real Vision doesnt look professional

  39. Use the blockchain for voting

  40. The need to protect society from criminal activity far outweighs the need to allow people to access money free from government intervention. The US dollar isn't backed by military power, its backed by the economy just like every other fiat currency, and banking includes a whole bunch of jobs and services, in addition to printing money. Trying to justify Bitcoins excessive use of energy just doesn't wash because its only a very small number of people that require money protected from government seizure, so the energy use isn't worth the small benefit that is mostly exploited by criminals. Blockchain services is where the real value in crypto lies, not the valueless tokens, yet these seem to gain in price despite having less utility than fiat and also having nothing to back them up. People just aren't thinking clearly when they speculate.

  41. many analysts mentioned china has digital yuan, and then jumped directly into conclusions that government can freeze ur digit money. Alipay or wechat pay did take over partial biz from banks, but ur transactions has always been recorded before by bank and now by alipay or wechat pay payment history , exact same thing. Just like you have paypal and you leave some money sometimes on ur paypal account, and paypal also has all ur expenses record. I just think this is misleading example.

Leave a Reply

Your email address will not be published. Required fields are marked *