Apple will be Called to Account

Before 2030 Apple will be called to account by the United States government for their willingness to cooperate with the Chinese government.

Readers of no gradient will know that I’ve discussed this in my In 2018 and Facebook’s Feasible Future is Apple’s Fictitious Present posts. I have also tweeted about it several times (copied below).

For this prediction to be deemed correct, Apple must be called to account in some official capacity. That may be, but is not limited to, Apple having to testify before congress or being investigated at the federal or state level. A congress member or president merely making a statement about them is not enough.

Cloudflare, The Most Important Company You’ve Never Heard Of

Nearly a decade ago when it was difficult for small sites to handle large amounts of traffic, especially from DDoS attacks, I remember stumbling on Cloudflare‘s first promotional video. At the time it seemed like magic. No hardware or software configuration needed, and you could ensure your site would stay up using Cloudflare’s infrastructure. Today, they are valued at over three billion dollars and are gearing up for an IPO.

I’ve talked about Cloudflare for some time now and championed their free to use privacy first DNS service and their suite of products and experimentation that are making the internet a better place. But for a company that powers nearly 10 percent of all internet requests you would be hard pressed to find them mentioned next to the cloud services giants of the world like Amazon, Microsoft, Oracle, and Google- that is about to change. With reports Cloudflare is going to IPO at over a 3 billion dollar valuation, it’s prediction time:

Before 2030 Cloudflare will be valued at over $20 billion. This equates to an ~18% growth rate every year.

Microsoft capitalized on software, Google on the internet, Apple on mobile, and Cloudflare will capitalize on cloud services. Unlike the other cloud services providers in the space who have added cloud services to their offerings, Cloudflare has been doing it from the beginning- it’s in their DNA. I’m always bullish on companies that are built to take advantage of a specific booming sector from the beginning- avoiding the pitfalls that come with trying to reorient their business to handle it. Let’s see what happens.

Square, Twitter, and Cryptocurrency

Jack Dorsey, CEO of Twitter and Square, recently made public statements (shown below) voicing his support for Bitcoin while showing his lack of support for other cryptocurrencies. Given Jack is CEO of two publicly traded companies with a combined value of over $50b, it is no small thing for the cryptocurrency space that he is making these statements. I think he is a very intelligent and thoughtful person and I encourage you to listen to him on The Ringer with Bill Simmons or Joe Rogan. It is a great look inside the mind of someone who controls one of the most important public platforms. However, I think he is wrong to think that Bitcoin is the end all be all. Bitcoin as the one and only winner in the space is much more likely if all cryptocurrency amounts to is an internet based currency. But cryptocurrency is more than that and we are increasingly seeing that reality with projects like MakerDAO and Augur. Which leads us to my prediction.

Prediction: Before 2030 Square or Twitter will have integration with a cryptocurrency besides Bitcoin. This could be, but is not limited to, the ability to transact with a cryptocurrency besides Bitcoin in Square’s Cash App or Square’s POS terminal. Currently the only cryptocurrency integration in Square’s products is the ability to buy and sell Bitcoin in Cash App. Or in the case of Twitter it may become possible to easily send cryptocurrency directly to another account. In fact, let’s make that another prediction.

Prediction: Before 2030 Twitter will allow users to transact in at least one cryptocurrency. This could be, but is not limited to, tipping accounts or crowdfunding.

Predictions Scoreboard

I like falsifiable predictions because it forces one to take a stand rather than hide behind vagueness or platitudes. Not only does it make it easy to track how accurate your worldview is over time allowing you to learn. But it also gives an extremely potent dose to the reader of what your worldview actually is. I wish more journalists, writers, thinkers- hell everyone- did this. Take a stand people, no gradient.

That’s 4 for 15 thus far shooter, for a batting average of .250.

Correct

Before February 1, 2019, Bitcoin will at one point trade below $3632, a 10% drop in value. BTC is currently trading at $4,031.13. This price drop will be caused by the fall out from the Ethereum Classic attack as more question the security of other blockchains. E.g. A large portion of Bitcoin is controlled by a small group of mining pools.

By 2025 Coinbase will release public APIs for businesses to accept cryptocurrencies as payment online.

In Android P, the UI to indicate battery saver mode will be replaced with something less garish.

Google will leave the low end Android device market to other manufacturers.

Incorrect

A 51% attack is currently being carried out against Ethereum Classic. ETC is currently trading at $5.05. Before February 1, 2019, ETC will at one point have a market price below $2.50. The goal of a blockchain is to maintain consensus. Once that’s gone, the value is gone.

By 2019 the Facebook Messenger platform will be huge, absorbing what would normally be stand alone apps.

In 2019 Google built Android devices will be the most prevalent in developed nations.

In the Pixel 3 phone, Google will release a Face ID equivalent that utilizes less specialized hardware than the iPhone X, but makes up for it in software. Similar to Portrait mode now.

Google will release the Pixel phone through all major US carriers in 2018.

Google will release an Android Wear watch in 2018.

The one year adoption rate for Android Oreo will be 9% (+/- 2.5%).

By 2030 there will be a financial services company offering a fully managed investment solution (e.g. saving for retirement, portfolio diversification) that charges no fees.

Google will release a Pixel device with Google designed silicon in 2019.

Google will release the first Pixel phone in 2017.

The Nexus program will end in 2018.

Periscope is going to be huge. Streaming of protests, sports events, disasters etc. Making tv networks even more redundant.

Tesla Predictions

Was riffing with some brothers on Tesla and some predictions came out of it. We’ll check back on this in one in a few years.

Pat Daly: Before 2025 Tesla will be bought, likely out of bankruptcy or extreme financial duress, for less than their current market price of $53 billion.
“A lot of their growth that’s priced in is predicated on their ability to deliver an affordable, mass market, fully electric vehicle and they haven’t been able to do that.”

Tim Ferris: Before 2030 Tesla will either be bankrupt or worth $300 billion as an independent company.
“Either it’s going to the moon or it’s finished, there is no middle ground.”

Me: Before 2030 Tesla will be worth $100 billion as an independent company.
– Elon Musk has an air about him, he will always be able to raise money.
– Their vehicles offer an unparalleled experience. Take a test drive, use the app, and tell me another automaker comes even close.
– Tesla is more than just an automaker- their innovations in solar roofing and energy storage will prove to be very successful.

Sawyer Billings: Before 2030 Tesla will be worth $100 billion as an independent company. Automobiles will account for less than 25% of revenue.
Side prediction: By 2025 the minimalist dashboard (i.e. no buttons, knobs or dials) with a single display that operates the entire vehicle will be the norm across all major automakers new vehicles.

Greg Raiz: Before 2030 Tesla will be worth $500 billion as an independent company.

James Newhouse: Tesla will maintain >50% share of battery electric vehicles for another 4 years, through 2022. After 2022, Volkswagen, GM, and a subset of the Chinese startups will make the U.S. BEV market much more competitive.

Ethereum Classic 51% Attack Fallout Predictions

A 51% attack is currently being carried out against Ethereum Classic. ETC is currently trading at $5.05. Before February 1, 2019, ETC will at one point have a market price below $2.50. The goal of a blockchain is to maintain consensus. Once that’s gone, the value is gone. Incorrect. ETC dropped as low as $3.84 on January 28 2019 but not quite the drop I predicted. I wrote about some things I learned from the attack, one of which why the price didn’t drop as much as I expected.

Before February 1, 2019, Bitcoin will at one point trade below $3632, a 10% drop in value. BTC is currently trading at $4,031.13. This price drop will be caused by the fall out from the Ethereum Classic attack as more question the security of other blockchains. E.g. A large portion of Bitcoin is controlled by a small group of mining pools. Correct: On January 20 2019 $BTC traded below $3632, falling to $3410 on January 29th. I’ll consider this prediction correct, but it would be a stretch to definitively claim this was a result of the $ETC attack.