[WATCH] Gordon Einstein: mining for crypto – it’s like gold!
US crypto-attorney Gordon Einstein tells AIBC why buying in Crypto is worth it
Working directly in the crypto sphere for the last decade, Gordon Einstein, Founding Partner at CryptoLaw Partners and FinTech and Blockchain expert, shares his insight on investing in crypto.
Disclaimer: The following is not intended as investment advice. Do your own research.
US Crypto expert Gordon Einstein (pictured below at the AIBC Summit Malta 2019) tells AIBC that mining refers to problem solving and compares the process to mining for gold.
Imagine there’s gold on the ground, and it’s a new mine. So, you bring in one tractor, and because there is so much gold and no one has gone there before, each day you can pull out a tonne of gold. Everyone is like WOW this is cool; I am going to bring my own tractors also. And they all start competing and there is only one way-in each time,
Now you dig for a while and you go deeper and deeper and its harder to mine after a while. The gold is buried deeper into the ground and it’s more spread out. So, next time, instead of pulling out a tonne of gold, you pull out half a tonne of gold. Everyone is still putting in double the effort, they are all trying to go in there, but it is harder. Time passes, and the gold is even deeper in the ground, so the next time you pull out gold it is a quarter of a tonne.
Imagine there’s gold on the ground, and it’s a new mine. So, you bring in one tractor, and because there is so much gold and no one has gone there before, each day you can pull out a tonne of gold. Everyone is like WOW this is cool; I am going to bring my own tractors also. And they all start competing and there is only one way-in each time,“Now let suppose this is the only gold mine in the world, are people going to loose interest in mining that one quarter of a tonne?”
Einstein argues that the situation in the gold mine changes and people might start asking whether it is worth it any longer. If this is the only gold mine in the world, interest will surely remain as gold remains scarce.
According to Einstein, mining bitcoin is the same. If there is a problem in mining, as the resource is scarce and it is becoming more difficult to enter the mine, he suggests that there are alternatives.
The crypto-expert suggests to AIBC that instead of going into fully-fledged mining, one can even opt into buying crypto, even a small percentage. However, Einstein counsels caution:
“It may always lose all its value. You can have quantum computing that makes solving blocks instantaneous and which would break the whole model,” he insists.
“The internet may fall apart and you can have China taking over the network because most of the miners are in China.”
Still, Einstein believes that the risk might be worth taking.
Bitcoin (BTC) has such a first mover advantage, and it’s awakening institutional interest that I personally feel is worth buying all the time, no matter what.
In fact, Gordon Einstein had previously told AIBC that he believes that bitcoin reaching $100,000 at the end of the year is a “no-brainer”.
For those looking to buy bitcoin, Einstein recommends platforms such as Coinbase or PayPal for beginners, and person to person transactions or over the counter transactions (OTC).
WATCH: Making Sense of the 2021 Bitcoin Boom, with Gordon Einstein
About AIBC:
AIBC Summit is a global expo covering topics relating to the global sectors for blockchain, AI, Big Data, IoT, and Quantum technologies. The event includes conferences hosted by globally renowned speakers, workshops for industry learning and discussion, an exhibition space accommodating more than 400 brands and a number of networking events.
