Here’s What Tony Robbins Actually Thinks About Bitcoin
The folks over at Robbins Research International – the website for Tony Robbins – recently penned a piece on Bitcoin. We thought we’d break down some of the advice which appeared first on the acclaimed investor’s blog.
The piece first defines bitcoin. “It is a digital system of (non-physical) ‘tokens’ which have an ascribed value and are used for trading goods or services, much like cash or credit.”
After expanding on that, the blog goes deeper, touching on mining. “The network is composed of computers that solve open source mathematical cryptographic problems in order to add ‘blocks’ to the network, known as the blockchain,” writes Tony’s team. “It’s a little like solving a riddle in a computer game that then reveals a part of the game that was previously inaccessible. In return for solving those problems, the computer’s owner receives bitcoins. The mathematical algorithm adjusts in level of difficulty so that bitcoins are not released into the world too quickly. This process is known as mining.”
“Bitcoin is decentralized,” writes Tony’s team. “No single bank, government, company or individual owns the network or has control over it. This means that your accounts can never be frozen, a government cannot devalue the currency, it can be used in every country, and, more ominously, because of the anonymous nature of bitcoin, the technically savvy can avoid taxation and use bitcoin as payment for any kind of illegal good or service.”
Tony’s team writes that Bitcoin could change how the world handles finances, “but there are still problems with it.”
The piece then highlights Bitcoin’s anonymity and association with drug trafficking and reports that the digital currency will fail.
“The network has thus far weathered all storms, but some of its investors have not been so fortunate,” Tony writes. “When the largest bitcoin exchange of the time – Mt. Gox – suddenly shut down in February of 2014, investors collectively lost $460 million worth of bitcoin.”
It add: “If bitcoin adoption continues to grow, the financial structure as we know it will be altered — but no one still really knows how.”
Mr. Robbins has directly commented on Bitcoin. “I think [bitcoin] is very iffy,” Robbins told CNBC. “I look at that as it’s like going to Vegas. I know it is just for fun I’m investing, I know I could lose, this is Vegas.”
Robbins instead suggests a more stable approach than bitcoin. “Index funds take a ‘passive’ approach that eliminates almost all trading activity,” Robbins writes in his book Unshakeable. “When you own an index fund, you’re also protected against all the downright dumb, mildly misguided or merely unlucky decisions that active fund managers are liable to make.”
Robbins, an American author, entrepreneur, philanthropist and life coach, is known for his infomercials, seminars, and self-help books, is the founder of several companies that earn approximately $6 billion in annual sales. He was listed on the Worth Magazine Power 100 list in 2015 and 2016.