Evan Luthra: Digital Assets Investment is Not For Everyone
Evan Luthra says digital assets are by far the best investment class for those with a high-risk appetite.
Serial Innovator and Angel Investor Evan Luthra told Cointelegraph that digital assets are by far the best investment class. He makes this assertion because of the outsized returns compared to traditional asset classes. However, Luthra notes that it is a sort of investing that is generally not for everyone. The high-risk appetite necessary is only shared by a very small group of investors who tend to be young, successful, ambitious and have access to lots of capital without huge responsibilities.
Cointelegraph talked to Luthra about his resilient attitude towards innovation, his Blockchain interests and the investment opportunities that are emerging in the industry.
Cointelegraph: You are popular for the works you have been involved in over the years in the IT industry. Can you please highlight a few of those and your motivation behind these works?
Evan Luthra: I have been a serial entrepreneur for a long time and embarked on my first digital endeavor at 12-years-old by curating technology-related news, and I garnered a notable quarter of a million readers in doing so.
I then began developing mobile apps at the advent of mobile app popularity. Always being on leading edge of new trends and innovations, I become a true innovator and recognized name in the world of startups. Then I started various technology companies and managed products used by millions of people.
I have extensive knowledge and experience in mobile apps and my company has developed and delivered mobile apps for major Fortune 500 companies. My strategy follows a simple, but proven formula: conceptualize, innovate, execute.
More recently I am heavily involved in the crypto industry working with companies such as GazeCoin.io, Hashgraph.com and others. I have been regarded as a Blockchain expert and pioneer by the world's leading organizations and publications.
I believe in using technology to disrupt existing industries and have companies in a diverse set of industries from food tech, fintech, marijuana, travel, nightlife, food and beverage, lifestyle, social, AI, VR, AR, MR, entertainment, fashion and more.
I have been a featured speaker at different universities and conferences around the globe and mostly speak about Blockchain, apps, entrepreneurship and trending tech topics. I have spoken for TEDx, United Nations, Google, Nielsen and have done guest lectures at Delhi University, Washington State University, San Francisco State University and more.
CT: The emergence of Blockchain technology is influencing the trend of developments in various fields, causing some major disruption. What is your opinion about this developing trend?
EL: The underlying technology under Bitcoin - Blockchain is very impressive and is going to change the world. With a focus on decentralization, Blockchain wants to give power back to the people. We saw how apps came and changed the world in a big way and now we can't imagine a world without all our apps - with Blockchain we are looking at a future of decentralized apps.
Blockchain is slowly taking over every facet of our lives and entering all kinds of industries. It is not just an industry by itself but is disrupting all other industries. Blockchain has a viable application and utility in nearly all industries. That's why we have seen over 2,000 ICOs [each] month trying to fix problems in all kinds of [industries]. These range from banking, financial services, insurance, logistics companies, retail giants and governments. Everyone seems to be in a race to implement it first. The early adopters are going to have a huge competitive advantage.
Bitcoin is just one application of Blockchain [technology], but the overall potential is huge. With Bitcoin, we have seen what's possible, and now with time we will see how Blockchain disrupts all other industries. I believe this is going to be more than Internet 2.0. Since Blockchain is already a validated technology, it would be interesting to see its impact at scale.
Power of decentralization
CT: Have you picked up any particular interest within the Blockchain ecosystem yet?
EL: My major interest lies in the transparency and power decentralization that Blockchain is going to introduce. Industries like adtech or fintech - which are laced with fraud - would highly benefit [from the benefits] Blockchain provides.
I am already involved in multiple facets of the industry from investing in decentralized ledger companies to working with governments from UAE, Dominican Republic, Fiji and others helping them implement e-governance using Blockchain.
[One of my companies] focuses on investing in and executing ICOs for a variety of companies with our strong team of Blockchain engineers and strategists. Having already helped raise over $50 mln over three different ICOs, we are on track to raise another $100 mln in the next 12 months for our partners.
CT: There’s been a lot of opinions about Bitcoin, Blockchain and cryptocurrencies regarding their present state of development and future projections. What is your opinion about the industry?
EL: I am a firm believer in the idea of decentralization and Blockchain is going to grow by leaps and bounds. The recent growth has been phenomenal, nothing like anyone has seen before. Although it would take a few years before things get rational, especially the prices of cryptocurrencies, with Wall Street expressing interest in Bitcoin, it is a clear statement that Bitcoin is here to stay.
I am very bullish on the industry in general and I am building and investing in many companies in the space. We are launching our own ICOs to putting up Bitcoin ATMs to promote the growth of cryptocurrencies. I know Bitcoin (and many other cryptos) and Blockchain is here to stay and I believe in five years Blockchain will be running a large part of our world and Blockchain based solutions would have replaced older models of operating businesses.
Digital assets a great idea - for some
CT: What do you say about investors who are moving into digital assets…. Smart move or dumb move?
EL: It depends on the investors and what risk appetite they have. A dumb move for an old retiree who is looking to invest his life savings may be the smart move for a young person who can take bigger risks.
If you look for minimal returns and very low risk, digital assets are probably the wrong choice.
Having my investment grow 20x in under 18 months, I am all about digital investments! If you want fast growth and are willing to take higher risk, there is no better asset class then digital investments.
For someone like me who is OK with taking very high risk - digital assets are by far the best investment class considering the returns are unmatched by traditional asset classes.
There is a reason why the five biggest companies in recent years are all technology companies because there is huge potential to grow big very fast.
Extreme risk, potentially huge reward
Early stage startup Investing has always offered great multiples from 3x to even 50x in a few years and now with cryptocurrencies the market moves so fast that with the right bets you could 2-3x your money in 24 hours. But you have to remember with high reward comes risk and you can also lose your whole investment very fast.
This sort of investing is generally not for everyone and the high-risk appetite is only shared by a very small group of investors who tend to be young, successful, ambitious and have access to lots of capital without huge responsibilities. I personally have seen my investments return me 500 percent in 24 hours but then again I also lose on over 50 percent of my investments!
I alway suggest people to do value-investing, so invest in assets/companies/coins you think will create value and hope for the best. Read and understand as much information as possible and make calculated decisions and be willing to lose your full investment.
CT: Do you have any more comments?
EL: With the pace the technology world is changing its possible to make lots of money really fast. There has never been a better time to be alive and to make a positive difference while making lots of money doing it.
Lower barriers to entry
The technology industry has very low barriers to entry and everyone can find opportunities, come up with solutions and launch a business. You could come up with an idea, partner with the right people, build a good product and launch it to the whole world all while sitting on your couch. And now with the advent of ICOs, you could even raise money really fast for your products!