SWITZERLAND: the CRYPTOCURRENCY capital? – VisualPolitik EN

Imagine that you could buy stocks from your uncle’s farm. Yes, let’s assume that your uncle has a
farm, a small farm, with some cows, and you can buy stocks from his company. On the stock market, just like you would do
with big companies like Apple, Exxon or Chevron. Do you think I’m crazy? Not at all! At the end of this video, you will see where
I’m coming from. Imagine that you wanna start a company. A traditional company. Let’s stick to the example of the cows farm
to produce milk and Dairy products. What is the first thing you need? Of course, money! You need money to buy the property, the facilities
and the cows. Where can you get that funding? The first option would be, of course, the
bank. But this has many issues. The first one is that, if it was not risky
enough to start your own company, having a loan makes it even more risky. You can end up bankrupt and with debts. Besides, the person in the bank might not
want to give you that loan. If you have ever tried to get a loan to start
a company, you know what I’m talking about! It is pretty hard to convince a banker to
lend you money. So we discard the bank option. The next alternative is a venture capitalist. You know, one of those guys in Silicon Valley. People with lots of cash and willingness to
invest in young talents like you. Who knows! Maybe your small farm might become the nigh
industry behemoth! But… OK, do you know any of those venture capitalist? Chances are you don’t. Specially if you live somewhere in the middle
of India. OK, so no Banks, no venture capitalists… Are your parents Rich? No? OK, so your parents cannot help you either… Hum… wait a minute! I think I have an idea… what if you could
enter the stock market? Yes, you know, something like Wall Street,
where General Motors or McDonalds are… The good thing about the stock market is that
you don’t need to know a millionaire to get funds. There are thousands of small investors out
there who buy stocks every day. So let’s say that you divide your company
in, say, 10,000 stocks. Each of them have an initial price of 10 bucks. And people, no matter where do they live,
can buy those. Maybe there is a guy in Kansas who buys one
stock. And there is a woman in France who buys 10. This way, with no contacts and no bankers,
you can get the funding you need. You just need a good idea and hard work, right? Well, don’t get too excited. There is a big problema. For instance, if you want to get in the New
York stock exchange, your company should have already made, at least, 10 million dollars
in the last 3 years. And this is just the beginning. There are lots and lots of regulations that
you should meet. Well… THIS is the situation where the guys from
the Khokholskaya Agricultural Company were. They lived in Russia, they wanted to start
a cow farm and they had no money… What do you think they did? Well… check this out! Russian-based Khokholskaya Agricultural Company
plans to launch an ICO named MilkCoin to fund a dairy farm. Yes, you heard this right! This farmers launched their own cryptocurrency! This is something like their own version of
Bitcoin. They advertised it on their own website and
they launched the offer of this new coins. This is what we call an Initial Coin Offering
or ICO. And now you might wonder… but… Why should I buy ANOTHER cryptocurrency? Isn’t it enough with bitCoin? Well… you might think you are just buying
coins. But in fact, you are buying stocks. Without going through the tradicional stock
markets. At the end of this video, I will tell you
what happened finally with this company. But the truth is… they are not the only
example… Only 48% of ICOs were successful last year
— but startups still managed to raise $5.6 billion Yes, my dear viewers, there is already a brand
new way of making Money to start a company. And it is available for everybody. But wait a minute because not everything is
so beautiful! As you can imagine, this idea of the ICOs
seems like a scammer’s paradise. So the question is… can we really trust
this brand new way of starting companies? And what does Switzerland have to do with
all of this? Today we are going to answer all of this questions
but, before we do, let’s take a look back at the history. COINS VS TOKENS In the year 2013, all the tech industry was
already pretty aware of BITCOIN. In Silicon Valley they were celebrating all
kinds of events and talks about the future of this currency. In one of them, there was a man called J.R.
WILLET. This man had a very funny idea. He said we could create other alternative
currencies that, using the same tech as Bitcoin, would have different rules. And how are we supposed to pay to the IT people
who would design all of that? They asked him. He said that, instead of looking for a venture
capitalist, he could sell some notes, what we call a TOKEN, that would be exchange for
the coins once they are created. And this is how the first Initial Coin Offering
was created. But before we continue, we must make a parenthesis. Many of you might wonder… What is a TOKEN? Well… Tokens are any kind of element that can be
changed in a blockchain. Cryptocurrencies are one kind of token. But there are many more. On one hand, we have those that give a right
to its owner. For instance, this would be the example of
those notes that you could change by brand new currencies once they are created. On the other hand, we have the tokens that
are based on an asset. This would be the case of the stocks from
the Russian farmers. Having one of their tokens equals to have
a share of their company. This Initial Public Offering of Tokens became
in fashion in the year 2014. Why? What happened in 2014? Well that was the year when the second most
famous cryptocurrency was created. Ethereum: the decentralised platform that
might displace today’s institutions Unlike Bitcoin, we all know who is behind
Ethereum. This is a company that offers way more than
a cryptocurrency. They also offer a system so other people can
create their own cryptocurrencies and tokens. For example, do you remember this other video
where I told you how a Spanish bank is using blockchain to give corporate loans? So well… Ethereum is the platform they use. And we are not talking only about Spanish
banks! Ethereum has made it really easy to lots of
people to start creating different financial products on blockchain. The Ethereum rush has been unleashed: ICOs
are on fashion in the tech investment world Since then, lots of companies are getting
finance this way. For example, SIRINLABS is a Swiss company
that is about to launch their own smartphone. This company has gotten more than 118 million
bucks thanks to one of the most successful ICOs of history. And, of course, there are all kinds of Internet
companies that have been born with this system. But hold on just a second because not everything
is so beautiful! ICOs have no regulation whatsoever. So you can imagine the rest. How to create an ICO Scam in 5 simple steps So now you might wonder… what is the difference
between and ICO and, for example, a website like Kickstarter? Easy! If you support some Kickstarter project, you
cannot sell any share. On an ICO, you can buy a token or a coin and,
if it goes higher on the market value, sell it to another investor. The only problem is that here, there is no
financial police or SEC that running against the bag guys. So imagine how many people thought they would
get rich in a matter of months and they lost tons of money, instead. For example, SAVEDROID was a German company
who wanted to make a cryptocurrency based credit card. It had all the buzzwords to make speculators
happy. Everything seemed beautiful, technological
and disruptive. Specially disruptive. They got 50 million dollars to launch it. And once they got them… what do you think it happened? Well, they just disappeared. And since there was not public register whatsoever,
it is almost impossible to find the owner. I’m sure all of you have already seen lots
of ads about tokens, coins and lots of things that promise a lot of profit. For a better understanding, even the CEO of
Ethereum, VITALIK BUTERIN, recognized that most of the ICOs are scams. As you can imagine, governments have already
started to act. China has banned ICOs. America seems to follow a similar way. Other countries like Estonia said that it’s
OK to invest in ICOs for everyone except by EStonian citizens. This is something like… ‘Oh, yeah man, you can scam whoever you
want but not my people!’. Nonetheless there is ONE country that has
found an intermediate solution. They will not ban it but they will not let
it go as it is today. Which country am I talking about? Here is a clue! We talked about it in one of the most viewed
videos here at VisualPolitik. Do you already know it? Of course, we are talking about… SWITZERLAND, THE CRYPTO NATION Do you remember that video we made about Switzerland? There we talked about a canton called ZUG,
which has the lowest taxes in the country. So… guess where Ethereum has its headquarters! Having the biggest crypto currency company
in your country means that you also have the biggest experts on the matter. So most the of ICOs are done in Swiss servers. And, of course, the Swiss Government soon
realized that, with or without scams, this was a millionaire industry. Switzerland Wants to Be the World Capital
of Cryptocurrency Four of the 10 biggest initial coin offerings
last year were in Switzerland, more than any other country This is why, some Swiss municipalities let
their citizens pay taxes or even fines with cryptocurrencies. Zug, having less than 30,000 inhabitants,
is already the home for 400 blockchain based companies. And their regional government is already doing
trials to use this technology to organize the referendums. You already know that referendums and direct
democracy are essential in the Swiss political system. So well… now they wanna do them with blockchain. And, of course, Switzerland wants to become
the pioneer in ICO regulations too. Swiss Financial Authority Releases ICO-Specific
Regulatory Guidelines For example, any company who wants to make
an ICO in Switzerland, will have to do it with a Swiss company. This means they will have to register, give
their name and have a physical address. This way, it will be easier to chase terrorist,
narcos or scammers. As you can imagine, this regulations are starting
to work. And many companies have already gone to other
tax havens like CAIMAN islands, that offer a complete dog-eat-dog scenario where you
can do whatever you want. This is the short term price you have to pay
in order to have a stable environment. We are talking about a world that still needs
a lot to become a mature market. But it has plenty of possibilities. Many more than scams, money laundering or
easy money. So the Swiss way seems to be the smartest
so far. Yes, a new technology has come: it is risky
but it has many possibilities too. Instead of banning it or, let it completely
free, the best is to regulate it. This way we take the good and avoid the bad
part. By the way, going back to our Russian friends…
those who wanted to finance their farm with cryptocurrency… well… I have bad news for you. Unfortunately, since MilkCoin raised only
2% of the Softcap, we are giving back all funds that we received. We will start the return on the 21st of November. Huge thanks to our backers! Now the question is… Do you think other countries will follow the
Swiss example? It is clear that we still need more time for
the ICO market to grow and become mature but… Do you think it can be that capitalist revolution
that will open the entry barriers to start a company? Please, leave your answer on the comment section
below. And please, do visit our friends from reconsider
media, the podcast that provided the vocals on this episode that were not mine. Also, don’t forget that we publish brand
new videos like this one every week so hit that subscribe button, the bell icon, and
you will not miss any post. If you want yo, you can support us on Patreon. And, as always, I see you next time.

32 thoughts on “SWITZERLAND: the CRYPTOCURRENCY capital? – VisualPolitik EN

  • Factually there are a few mistakes. Savdroid did disappear but was a fake disappearing act. The company is real and so is the money behind it. They pointed out how easy it is for fake ico's to raise money then disappear. Love your vids but be sure the research is better. A simple Google search would have been enough to get the correct info.

  • I can Imagine this working for African Startups who need Venture Capital but have no means of acquiring it, however you are right, things like this do need to be regulated, I myself, having spent a lot of time assessing the internet and it's flawed security could see many opportunities for thieves to break in and fool unsuspecting users

  • Now is the best time to invest/mine your bitcoin now the price is down and the market value is high, why save your bitcoin? i advice any miner or investor to start investing now rather then losing all your coin, i will show and guide you through the crypto mining investment platform as they are good btc miners, i gain up to 1.5 btc per day and up to $6000 from ETH to month. A good business man should know that bitcoin would become very expensive, and now should be the right time to invest. well Interested parties can contact me for more info at [email protected] WhatsApp number: +1 (559) 295- 2596

  • Simon – you videos are awesome but are you so negatively biased on India.. you should do a little more research on India..

  • OK so Israel grows on internet security and Switzerland on Cryptocurrencies. Please give me an idea for Slovenia.

  • I can't get those subscribers on this channel. Why they always complaining about loud music? I saw only one or two videos on this channel with bad sound, but generally in all videos I didn't notice anything abnormal with a sound or loud music.

  • small but important thing that you didnt mention is that startups funded by VCs fail at an incredible rate (around 80%). So before drawing a picture of scam or non-scam, you got to also recognize that not all ICOs are only about scaming people. Failed ICOs like the Milkcoin or even just a farm that didnt get their trageted returned maybe through industry changes or whatever could not be a scam but the system worked but the timing failed (for example).

  • This is an interesting ICO review https://www.youtube.com/watch?v=T4E633WFVdk a lot ICO reviewers seem to be talking about Nuggets

  • Crypto = universal laundering. It will undermine central banking influence. Not good me thinks.

    Don't ever be the last one out.

  • 💰Read the post to get BTC Bonus: 10-2 | List of accounts in violation of the Pivot Rules https://www.pivot.one/share/post/5bb492e002b87509ef17f01a?uid=5bb4404883c829248bd1139d&invite_code=KXCYEC

  • great video! ICO would change the world we live together with the honest government but since the government is corrupt whole around the world we will only see the end of the crypto revolution… the only revolution will be for people that want it to manipulate the society

  • You are so wrong about SAVEDROID. It was a publicity stunt gone wrong. They are still active with their tokens traded on a number of crypto exchanges. @visualpolitik

  • Simin is wearing pink lipstick fosho!! Its a nice change. Keep the videos rolling. Glad the loud music is out the door.

  • "The best choice is to regulate it, like this you can get the good part and get rid of the bad" Applies for any Drug market as well! 🙂

  • The music is so much better than in your early videos. It's fun when you do nationally themed music in different videos too. Such an interesting channel, well done!

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