I recently sat down for a video interview with John Persinos, Editorial Director of Investing Daily (our parent company).

We discussed the basics of the blockchain, and I talked about why crypto investors should be feeling bullish right now. If you check it out here, you’ll recognize some of the key themes I’ve shared with you over the past few weeks.

I also touched on something else I want to expand on today…

You see, John asked me to address the crypto skeptics directly. So I did. And in preparation for the interview, I put a lot of thoughts together that I simply didn’t have time to fully share in the discussion. So, today, I want to pass them along.

But first, let’s cover some interesting news in the world of crypto.

🏛️ Toomey’s Take on Crypto Bills📜

Former U.S. Senator Pat Toomey delivered some real talk to those hoping for meaningful crypto legislation this year.

A noted crypto supporter, Toomey tried and failed to pass his own crypto legislation before leaving Congress. These days, Toomey is on Coinbase’s global advisory council. He recently spoke about crypto legislation at a Georgetown Law seminar.

The short version: don’t hold your breath for any crypto proposals to pass in the current Senate. Even with the House getting its act together on crypto bills, Toomey sees no path forward in the Senate. 🤷‍♂️

As Coindesk reports, Toomey says the legislation with the best chance of passing concerns stablecoin regulations. The former Republican Senator from Pennsylvania is optimistic about striking a deal with the Biden administration and getting Democratic lawmakers on board. But even then, he’s not totally sanguine.

But fear not. Toomey thinks the chances are looking better for the next Congress. So put the champagne on ice. 🍾

🔍 Why This Matters…

The crypto world is desperate for some regulatory clarity, especially with the SEC playing hardball. Toomey reckons any crypto legislation would have to charm the Senate Banking Committee, where he used to be the top dog. But the current head honcho, Sen. Sherrod Brown (D-Ohio), is not a crypto fan. However, what’s interesting is that he hasn’t made any legislative moves against it, either. So, at least there’s that.

Cuban’s Crypto Misadventure🕵️‍♂️💰

Mark Cuban, the billionaire entrepreneur and Dallas Mavericks owner, fell victim to a crypto scam. And the story of what happened could serve as a lesson for the rest of us.

Here’s how it went down…

Aside from his appearances on Shark Tank, Cuban is also known for embracing cryptocurrencies – especially DeFi (decentralized finance).

It all happened when Cuban tried to access his MetaMask digital wallet for the first time in about nine months. Then all of a sudden, bam! — his wallet was compromised, and Cubes found himself $870,000 lighter.

Initially unaware, Cuban confirmed the story to DL News. He said he suspects a malicious version of MetaMask could be the culprit, a common trick by fraudsters creating fake extensions or apps to snatch private keys or seed phrases from unsuspecting users. Once they gain access, it’s a free-for-all.

Cuban managed to secure his remaining assets in the wallet, transferring them to Coinbase. But the loss serves as a reminder to all of us to stay vigilant and practice good security when dealing with crypto.

What We Can Learn 🤔

The prospect of having your cryptocurrency wallet drained is more than enough to make you quake in your boots. But whenever you hear about high-profile crypto scams or hacks, remember these basic rules:

1. Always double-check the authenticity of extensions and apps, especially those handling your assets.
2. Regularly review and secure your assets.
3. Use reputable wallets and keep abreast of the latest security measures.
4. The crypto space is evolving, and so are the scams. Stay on top of the news.

In Which I Address The Crypto “Haters”… 🎙️

The main point I raised in the interview earlier this week regarding crypto skeptics is this…

It takes time for something to grow and mature before most people fully understand how revolutionary it is.

To understand this, let’s take, for example, Charlie Munger — Buffett’s right-hand man. Munger has openly trashed cryptocurrency. Here are some of the things he has said, according to CoinDesk:

In 2021, Munger labeled bitcoin’s (BTC) relative success, at the time as “disgusting” after alluding to how it is used by kidnappers and extortionists. A year later, the 99-year-old called bitcoin an “investment in nothing” as he doubled down on his skeptical stance.

Believe it or not, people said the same thing about the Internet in its early days. There is a now-infamous article from Newsweek in 1995, which basically said the internet was a wasteland of unfiltered information. It openly scoffed at bold predictions of e-commerce, virtual communities, and telecommuting. And it was written by a tech journalist in Silicon Valley!

Look, I respect both Munger and Buffett. But just consider that Berkshire Hathaway (NYSE: BRK-B) didn’t invest in Apple (Nasdaq: AAPL) until 2016. Buffett famously shied away from practically anything related to technology for decades.

The point is that Buffett and Munger are brilliant. But they are not infallible.

Watch This For A Good Laugh — But Then Think About It…

There’s a funny video making the rounds this week. It’s a local news broadcast showing people’s reactions to Burger King accepting credit cards for the first time in 1993. I encourage you to watch it.

One day, there may be a video like this about crypto. And in 30 years, our children (or grandchildren) will be laughing about it.

Let’s contrast that with something written in 1997. (Hint: I’ve referenced this book before.)

“The rise of digital money will disrupt the monopoly of governments over the issuance of currency, leading to a new era of financial freedom.”

That’s a prediction from The Sovereign Individual – a personal favorite of many of today’s biggest tech visionaries. It doesn’t get everything right, but it does predict the advent of digital currency and cryptography – in other words, Bitcoin.

Crypto has been around for a little while now. The Bitcoin whitepaper was published in 2008. And the longer it exists, the more “Lindy” it becomes. You can read about the Lindy Effect here. It suggests that the longer cryptocurrencies like Bitcoin continue to exist without catastrophic failure or being outlawed, the longer it is likely to continue existing. In other words, its mere existence creates greater perceived legitimacy and acceptance over time.

Closing Thoughts

Predicting the future is hard. We can all be wrong from time to time. So, let me address the skeptics directly…

What if you’re wrong? If you’ve dug in your heels about crypto, what do you have to lose besides some hurt pride?

Never in the history of currency has such a disruptive technology come along that promises to empower individuals by providing greater control over their finances. It challenges traditional institutions like banks (and governments) and allows people to manage their funds independently.

Whether you think the jury is still out or not, remember crypto’s promise. That alone should make you want to look into this more.

If you really want to understand cryptocurrency, open an account at an exchange like Coinbase. Buy a small amount of Bitcoin first as a test. There’s no better way to get a feel for how this works.

Trust me, anyone can learn this. We even have a full report explaining how to buy, secure, and store crypto at Capital Wealth Letter.

You can learn how to get it here.

In the meantime, you can always drop me a line here and let me know how it goes.