Tina Seelig, executive director of the Stanford Technology Ventures Program, is the author of the book ‘What I Wish I Knew When I Was 20.’ In the first chapter of her book, ‘Buy One, Get Two Free,’ she asks the question: what would you do to earn money if all you had was five dollars and two hours?
This was an experiment she gave to the students in one of her classes at Stanford University where each of the fourteen teams received an envelope that contained five dollars of ‘seed funding.’ They were permitted to spend as much time planning, but once they had opened the envelop they then had two hours to make as much money as possible.
So, what would you do if you had $5, but were limited to two hours to make as much money as possible?
Would you simply buy a lottery ticket? Or spend the money at a casino?
Whilst these are likely options people would think of first, they are high-risk ventures that present little return for your money.
How about setting up a car wash or lemonade stand?
These too, are unlikely to yield high profits in the two-hour time frame.
Thinking Outside the Box
Although many people may not take the question too seriously – after all, it’s only $5 – it does provide the perfect challenge to removing oneself away from typical responses, giving people the opportunity to think outside the box.
With so little money to begin with people can make a lot, once they know how to.
And as Seelig reveals in her book, those students who made the biggest profits didn’t even consider the five dollars. By doing so, the teams were no longer constrained to think about the money involved.
Instead, the teams that made the most changed the question to: how can we make money from nothing?
This, essentially, gave each team more thinking room, creativity to tap into their talents and the ability to identify problems to solve in their surroundings.
In her book, Seelig writes that the winning teams managed to bring in more than $600 while the average return on the five dollar investment was 4,000 percent. Not bad considering how little each team started with.
So, What Did They Do?
One team identified the problem that is common in many college towns: long lines at popular restaurants on a Saturday night.
During the two-hour time frame, the team paired off and booked reservations at different restaurants.
With the times for the reservations approaching, they then sold each reservation for up to twenty dollars to customers who didn’t want to wait in line.
They also found that the female students were better at selling the reservation spots instead of the male students, so they were tasked with booking reservations around town as the female students approached people to sell them.
A second team took a simpler approach and set up a stand near the student union offering to measure bicycle pressure for free. If the tired required filling, they charged one dollar.
According to Seelig, the team thought they were taking advantage of the students, but soon realized that their fellow students were grateful for a convenient service even though they could go somewhere to do it for free. So much so, that halfway through the experiment they stopped asking for a specific payment and requested donations instead.
As a result, their income increased.
What Can We Learn?
These two teams were able to make a significant profit during the two hours proving that if you put your mind to something in a relatively short time frame, you can make money.
What’s important to understand, though, is to avoid thinking about the money you have to begin with.
Think as though you have no money and grow from there. By thinking out of the box you open up the opportunities available to you, tapping into your creativity, and tapping into the potential profits you could make.
Featured image from Shutterstock.
Fidelity Investments is Mining Cryptocurrency
Fidelity Investments is a multi-billion dollar brokerage that just so happens to be mining cryptocurrency. In fact, it has been at it for three years, using its own computers to harvest bitcoin and Ethereum.
CEO Abby Johnson recently told Fortune that its U.S.-based mining operation is “making a lot of money.” This comes despite running a relatively modest operation.
Hadley Stern, Senior VP of Fidelity Labs, described his company’s venture as an “experiment.”
The real reason we began mining, and still do, is to learn how the network works, how consensus works, how difficulty levels work,” he said in reference to the mining process.
The key to profitability has been the dramatic rise in cryptocurrency over the past year. Bitcoin and Ethereum are the world’s No. 1 and 2 cryptocurrencies by market capitalization, and no-one else comes close.
Well Ahead of the Pack
The fact that Fidelity has been at this for three years speaks volumes about the company. Other, much bigger players are still dipping their toes in the market, but are unsure about how to proceed. Goldman Sachs is reportedly on the fence about starting a cryptocurrency trading operation, while J.P. Morgan has already begun handling customer orders for bitcoin-based instruments.
Fidelity is doing a lot more than just mining tokens. Earlier this year, it reached an agreement with Coinbase to let customers view cryptocurrency prices alongside other assets on their Fidelity homepage.
Coinbase is the world’s most funded cryptocurrency exchange with more than 7.4 million users.
The cryptocurrency market ended the week on a firm note, with bitcoin (BTC/USD) reaching a session high of $4,425.00. At press time, the index was up 1.6% at $4,368.
Ether is also trading higher against the dollar, with the ETH/USD rallying more than 3% to $305.
Ripple (XRP) lost momentum on Friday, but still managed a weekly gain of 21%.
Chinese Government Eyeing Fresh Bitcoin Legislation?
The Chinese government could roll out fresh cryptocurrency regulation in the coming months permitting licensed brokers to operate, based on recent information from Xinhua.
The state-owned news publication recently revealed that the government is mostly concerned with stamping out illegal activity involving bitcoin and other cryptos. Government authorities could be planning to regulate the market by creating a licensing program with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.
The Case for AML
The need for KYC/AML protocols has long been raised by cryptocurrency proponents, especially in reference to initial coin offerings (ICOs). In response, the blockchain community has come together to create the Simple Agreement for Future Tokens (SAFT). The SAFT is both an instrument and open-source framework for token sales that vets accredited investors.
SAFT activity is quickly gaining traction, with the likes of Gizer recently issuing a presale of its ICO through SAFTLaunch.
SAFT was officially created by Protocol Labs in close collaboration with AngelList and Cooley.
China’s Stance Looms Large for Cryptocurrency Market
Although digital assets have recovered from the China-induced flash crash of September, favorable regulations on the mainland could mean big business for bitcoin exchanges. Prior to the ban on ICOs and bitcoin brokers, Chinese investors were responsible for a quarter of all BTC trades.
According to Xinhua, China is likely to pursue a licensing program similar to Japan, a country that recently approved 11 cryptocurrency exchanges. CnLedger, a leading source of cryptocurrency news in China, recently had this to say:
“Xinhua News, official press agency of CN: Virtual currencies have become the top choices of underground economies. We shall adopt ‘0-tolerance policies’ towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions.”
Is China’s cryptocurrency ban temporary? It certainly looks that way. Regulators must already know that the ban hasn’t stopped mainland investors from buying cryptocurrencies next door in Hong Kong or Singapore. A saner approach to an all-out blanket ban is a tighter regulatory framework that will stamp out money laundering and other underground activities.
«Featured image from Shutterstock.»
Tim Draper Has Made Over $110 Million Since 2014 With his Bitcoin Investment
Tim Draper, the billionaire technology investor and prominent venture capitalist who has invested in some of the most successful technology startups in the likes of Coinbase, Patreon, SpaceX, Tesla, Box, FourSquare, has profited over $110 million from his investment in bitcoin less than three years ago.
In 2014, Draper participated in the auction of 144,336 bitcoins by the US government and the US Justice Department, which were seized during the investigation into Silk Road, a dark web marketplace. Draper was granted the permission to purchase a batch of 30,000 at around $600 from the US government.
Upon securing 30,000 bitcoins, Draper told Fox Business:
“[I’m] very excited about bitcoin and what it can do for the world. Bitcoin is as big a transformation to the finance and commerce industry as the internet was for information and communications. If bitcoin were here in 2008, it would be a stability source for our world economy. Everybody should go out there and buy a bitcoin. Every investor who’s a fiduciary should at least be partially involved in bitcoin because it’s a hedge against all the other currencies. There’s a whole ecosystem being built that’s going to make commerce much easier with much less friction and safer.”
Today, Draper’s 30,000 bitcoins are worth $129.9 million. Considering that Draper had spent $19 million purchasing the batch of 30,000 bitcoins in 2014, Draper has recorded a profit of over $110 million in less than three years.
While Draper held onto his investment in bitcoin, the US Justice Department was quick all of the 144,336 bitcoins seized during the Silk Road operation. According to various sources, the US government sold the majority of its 144,336 bitcoins at a price of $336, at $48 million. If the US government had sold its bitcoins in 2017, it would have generated an additional profit of around $573 million, as 144,336 bitcoins at today’s bitcoin price of $4,330 are worth $624.9 million.
Since 2014, in addition to purchasing tens of thousands of bitcoins, Draper has funded some of the most successful bitcoin companies in the cryptocurrency market including Coinbase and Korbit. Earlier this year, Coinbase secured a $100 million investment at a $1.6 billion valuation, while Korbit was acquired by the parent company of a $10 billion gaming company in Nexon at a $140 million valuation.
Furthermore, Draper has not sold his stake in Coinbase and earlier this year, Brian Armstrong, the CEO of Coinbase, revealed that Coinbase is still at an early stage in terms of developing and scaling. Armstrong noted that it will evolve into the safest and most trusted exchange in the global market.
“Digital currencies are having their ‘Netscape’ moment. The pace of innovation has been accelerating and we are now seeing exciting projects and companies being built on top of digital currencies. We’re beginning to transition into phase three of our secret master plan. Our goal is to be the safest, most trusted and compliant, and easiest to use. Not the first to market with new assets. Especially at scale, it takes time to ensure any new asset we add is well tested and secure,” said Armstrong.
Coinbase is also one of the two exchanges in the US market apart from Gemini that is targeting institutional and retail investors by providing sufficient liquidity. As Coinbase and its flagship cryptocurrency trading platform GDAX continue evolve, Draper will position himself at the forefront of cryptocurrency innovation and disruption.
- ICO Analysis: Bloom October 17, 2017
- Daily Analysis: Volatility Near Record Low 30 Years After Black Monday October 16, 2017
- Technical Analysis: Ripple Breaks Out Amid Ethereum Upgrade October 16, 2017
- Jamie Dimon May Hate Bitcoin, but J.P. Morgan Is Embracing Blockchain October 16, 2017
- Ethereum Gets an Upgrade October 16, 2017
- Trade Recommendation: EURJPY October 16, 2017
- Trade Recommendation: Waves October 16, 2017
- A Surprise Turn to the Right October 16, 2017
- Asian Market Update – Monday: Asian Shares Point Higher Ahead of a Big Week in China October 16, 2017
- It’s Decision Day for Catalonia’s President October 16, 2017
Ethereum1 week ago
Ethereum’s Hard Fork Is Coming
Analysis1 week ago
Long-Term Cryptocurrency Analysis: Coins Consolidate But Uptrend Still Dominant
Analysis5 days ago
Analysis: Bitcoin Price at $5200, How Much is There Left in the Tank?
ICO1 week ago
ICO Analysis: TripAlly
Analysis3 days ago
Technical Analysis: Ethereum, Monero, and Litecoin Jump as Bitcoin Goes Parabolic
ICO1 week ago
ICO Analysis: PayPie
Cryptocurrencies5 days ago
Trade Recommendation: Monero
Analysis4 days ago
Technical Analysis: Litecoin Follows Bitcoin Higher as Market Tops $165 billion