Today we had the opportunity to chat with Chris Dunn, OG bitcoin trader, youtuber, crypto junkie and over all cool guy. Chris is an experienced trader and is the founder of Skill Incubator, a company that teaches valuable skills to help people thrive in todays economy. Together with his partners, Chris offers courses on crypto trading, stocks, real estate, and other important topics.
So lets get this started.
Why are you so bullish on Security Tokens with accreditation laws as they are?
So I think there’s a few phases of this, you know, obviously the first phase is going to be the slowest phase, which I think we’re in now, which is assets are coming onto the blockchain they’re being tokenized but it’s very small potential investor pool for at least the first year during the lockup.
So for example with Tzero there is hardly any market right now and most of the investors that wanted some Tzero bought during the ICO which is why prices collapsed whenever they did launch on the exchange. I think it’s fine for now and I don’t think of non-accredited people are going to miss the boat. If anything, they might save money by not chasing bad deals. I’m bullish in the sense that this kind of first phase of security tokens, but hopefully new regulation that comes out that makes it easier for people to invest. One this happens I think we’ll see more investments from people that have never invested in the stock market before or don’t trust the whole financial system.
Do you think we’ll see a bull run on Security Offerings, similar to how we see runs on Weed Stocks or Privacy coins in crypto, etc?
No, I don’t think it’s gonna resemble anything like the 2017 ICO boom or crypto. That got out of hand and it wasn’t actually a good thing. If anything it caused a lot of people to lose a lot of money and it was just like a big kind of wild west with so many scams.
It’s going to actually be easier to price some of these security token assets because they’re going to have an anchor to something, real estate or actual earnings.
Coming back to Bitcoin, what do you think is going to happen in the next year or so before the halving that takes place in 2020?
For me it’s about the process of thinking of possibilities and probabilities in terms of what could happen. I like Bitcoin’s price again now that it’s down over 80% off of the highs and I’ve started to accumulate. I bought the breakout above 4,000 and really I’m just kind of waiting to see what happens in the next six months.
We’re either going to have another big sell-off which I’ll accumulate more and get my cost basis down even further. I’ll also trade the swings or if BTC breaks up above 6,000 and we actually change the technical market structure on the chart then I’ll prepare for another bull run.
But in my opinion just based on the technical analysis, as long as we’re below that 6,000 price there’s still a lot of bag holders that are potential selling pressure that makes me very skeptical of breakouts and pops. I’m accumulating on the way down but people have to realize like it’s very very difficult if not damn near impossible to know where the actual low is until the price action confirms market direction.
What are your thoughts on the stock market right now?
I don’t really have a strong opinion about where we are with the stock market right now. What I’ve been doing is accumulating. More kind of long term value plays. I’m looking for individual stocks that I feel are either undervalued or are are exhibiting momentum traits. I’ve been funneling a lot of my crypto trading profits into a portfolio that I will hopefully not have to touch for like at least 20 or 30 years.
Somewhere around 50% US Stocks 50% International stocks and then of my total portfolio I have some percentage in bonds and just try to be Diversified and then not overthink. Also stay flexible in the event we do get a recession so I have dry power to buy at lower prices.
Do you think we’re near the end of this decade long bull market fueled by Quantitative Easing and low interest rates? Are you preparing for this?
So I’ve actually stopped trying to predict what markets are going to do and I just think in terms of responding or reacting to market conditions. I learned this from some of the best Futures Traders. A few of whom I’ve been interviewing to actually trade some of my capital and I’m talking about firms that have been actively trading since like the 70s or 80s, guys that manage like several billion dollars.
They all say “We don’t try to predict markets”. They listen to the news and we want to understand the narratives but their trading systems are set up in a way where they just respond to news and setup models with algorithms and then let those trade so they don’t try to inject their subjective bias on the markets because that can lead to mistakes.
So QE has definitely pumped a lot of money into the system and we are 10 years into this thing, but there’s no rule or law that says “hey 10 years and we have to have a recession”. The markets are always evolving and we could have something happen that is unprecedented where maybe we never get a pullback or retest the lows.
Any specific projects or sectors you’re bullish on or have been actively following?
The only one I’ve invested in so far as Tzero and even that was just kind of a small starter size for me. I’ve been doing a lot a lot of due diligence. I’m talking about weeks and months of reading and looking at deals.
My game plan initially was to put a little bit of money into a lot of projects, a shotgun approach works well when all tides are rising and when we’re in a big bull market and I just I don’t feel like the STO markets going to look that way. I’ve also been looking at real estate deals and some startup deals.
What are your thoughts on the youth socialist movement happening in the US right now?
The people that I’m surrounded by on a day-to-day basis are very much entrepreneurial, very capitalism focused, investor focused and self-sufficient. Surrounded by libertarians.
Here in Austin there’s this kind of hippie or artsy movement of people advocating for a different structure to society and I get it. I mean the idea of getting something for nothing makes a lot of sense to some people I guess which is why Bernie Sanders and AOC are so popular. Whenever you tell people like hey you deserve to have free healthcare, you deserve a free education, that’s very attractive to some people right? And. For me not so much.
I just have the attitude of like I’m going to work for everything that I get but I do believe in some kind of society where we take care of each other, but where do you draw the line? I don’t know.
Last thing, what’s your your quick answer to your buddy from high school asking you about Bitcoin?
I say it’s super interesting. I think it’s the future and you should only buy an amount that if it went to zero you wouldn’t care about.
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