Robert is joined by Justin Ridgely to unpack the contentious field of Cryptocurrency. An illusive topic to many, Robert and Justin flesh out why cryptocurrency is simultaneously such an important evolutionary milestone in the modern world, while also posing deep concerns for how this particular phenomenon will impact people, culture, and the world.
Disclaimer: Nothing in this (or any) episode is financial advice. #nfa
Some of the topics we explore include:
- The principles and fundamental value-proposition of cryptocurrency
- ”Sound money” vs. state-backed fiat currency
- The drawbacks of "being your own bank" and other noteworthy concerns
- Crypto-mining and the environment (not an open and shut case)
Show Notes:
1:40 - Introducing Justin Ridgely
4:08 - Big pros of cryptocurrency
7:20 - At its core is the value of freedom
7:38 - “Sound money” as the opposite of state-backed currency
9:11 - Departure from the gold standard
11:16 - Implications of cryptocurrency being sound money
14:50 - Different categories of cryptocurrency
19:13 - Conversation around CBDCs
21:07 - The success of stable-coins
24:49 - Pros and cons of an evolving and growing infrastructure
26:18 - Crypto-banks, i.e. BlockFi
31:14 - This is not financial advice
32:00 - Ethereum and smart contracts
38:18 - Decentralized finance
48:00 - The cons of cryptocurrency
50:00 - The drawbacks of being your own bank
56:07 - Crypto mining and the environment
56:27 - Proof-of-work consensus
58:28 - Forcing the industry to look at using energy in a clean way
58:40 - Does this have enough utility to justify the environmental impact?
1:00:46 - There are more “disasters”...
1:01:00 - Scalability
1:04:49 - We are still in the early-adoption phase
1:07:44 - Common criticism of Ethereum: might be too expensive
1:08:30 - Scams
1:09:29 - Scams are separate from criminal activity, like ransomware
1:11:19 - And then there are scams, like “pump and dump” schemes
1:15:14 - Sometimes it’s not a conscious scheme, but then reality happens
1:17:43 - Regulation
1:19:19 - Anyone can have access to risky investments
1:20:00 - What’s the balance between protection and freedom?
1:21:27 - With radical freedom comes radical exposure
1:22:59 - Hopefully this will play out in a way that promotes compromise and collaboration
1:26:12 - Decentralized Autonomous Organizations (DAOs), from "Smart Money" to "Smart Companies"
1:28:50 - Do your own research (DYOR)
Justin Ridgely is currently Head of Finance and Operations at the Syndicate Project, and was recently Director of Operational Finance at BlockFi. Previously he was Director of Finance at Fundera, a fintech startup acquired by Nerdwallet. Earlier in his career, Justin led his own startup, was an investment banker, and also served in the Army as an Infantry Officer. He holds a BA from Emory University and an MBA from the University of Virginia.