This Week in Fintech ending 26 November

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote VC money bets on crypto

One way to understand how big crypto has become is to look at the prices of coins and at the industry’s market cap. But then when you check a few minutes or days later you might see a completely different picture because of the crypto industry’s volatility. In the last 10 days, bitcoin’s price dropped as low as $52,000 a coin, after hitting a record high of almost $69,000 in the run-up to bitcoin’s taproot upgrade being deployed. On the other hand, you could look at the market in a completely new way, and instead of worrying about prices and volatility, you could check out if accelerators and VCs are supporting early-stage crypto companies and if they are investing to help them grow and scale. In 2021 we saw an influx of major investment organizations entering the crypto world and so far this year has turned out to be the biggest year for investments in crypto startups. In my book, this is the most important factor on whether to invest in any market, especially in volatile crypto assets. As long as VC money keeps coming in and growing, I wouldn’t be worrying about volatility. Just buy what you can afford to lose, hold on to it and you’ll be a winner in the long run.

Editor note: The virtuous circle is more VC money in crypto leads to more product which leads to more adoption which leads to more VC money in crypto which…

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Part 4 Has to work with both small & large amounts of capital

The law of large numbers is brutal in investing aka pity rich Mr Buffet and Mr Munger.

Think about what it takes to go 10x from:

  • 10k to 100k
  • 100k to 1m
  • 1m to 10m
  • 10m to 100m
  • 100m to 1b
  • 1b to 10b
  • 10b to 100b

All numbers assumed in US$ but actually the principle and math is the same in any currency.

Editor note: This is Part 4 of a series on Low Cost Alpha.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote his weekly roundup of Stablecoin news.

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: The Climate Change Conundrum Part 1: Insurers’ Maneuvers

A study of insured losses over the last half century reveals that weather-related events have significantly escalated compared to non-climate perils. Between 2010 and 2019, global insured losses from wildfires increased by 500%. On the other hand, the humanitarian aid deficit grew from a little under a billion dollars two decades ago, to $4 billion a decade ago and is now estimated to exceed $20 billion. As much as $1.5 trillion of total pension fund capital would need to be deployed in (re)insurance to bridge this gap. In 2018, natural disasters decimated more than 10,000 people, leaving millions more homeless and caused economic losses to the tune of US$160 billion. The vast majority, 95% of the registered events were weather related.

Editor note:How Insurance companies handle climate related losses matters a lot to every human on the planet.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote his weekly roundup of XBRL news.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote his weekly roundup of Alt Lending news.

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