"The Riff" with Byrne Hobart and Erik Torenberg

E39: Mental Models and Financial Infrastructure with Patrick McKenzie

Aug 1, 2024

01:03:12

Snipd AI

Patrick McKenzie, known as patio11 and host of the Complex Systems podcast, joins the conversation to delve into the fascinating world of financial infrastructures. They explore the historical evolution of financial products and the precarious balance between security and usability in transactions. McKenzie uncovers unique aspects of financial fraud, including quirky laundering methods, and reflects on the collapse of FTX. The discussion also highlights innovative recruitment strategies and emphasizes the importance of networking for talent discovery.

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Quick takeaways

The podcast discusses the historical evolution of financial products and the complexities of trusting financial infrastructures.

It highlights the challenges of patient acquisition in digital health, emphasizing the need for effective engagement strategies for providers.

The conversation explores the distinct funding strategies of venture capital and private equity in the rapidly changing landscape of healthcare innovations.

Deep dives

Navigating Digital Health Conversations

The podcast highlights the dynamic discussions happening in the realm of digital health, focusing on the challenges and advancements within the industry. Key topics include the emerging field of biosecurity, which addresses the vulnerabilities in health data amidst increasing digitalization. The conversations also delve into the struggles of patient acquisition, shedding light on the complexities that health providers face in engaging with patients effectively. By featuring insights from entrepreneurs and investors, listeners gain valuable perspectives on the evolving landscape of health technology.

Changes in Society and Security Measures

01:20

The Art of Cold Emailing: Connecting with Successful Individuals

03:10

Trust Reduces Market Friction

01:47

Seek Discretion, Not Burdensome Gold

00:59

Intro

2min

Evolving Financial Infrastructure and Trust Dynamics

18min

Evolving Transactions and Educational Opportunities

3min

Unveiling Financial Fraud

24min

Game-Changing Recruitment

7min

The Art of Networking and Talent Discovery

4min

The Art of Cold Emailing: Connecting with Successful Individuals

3min

Managing Information Flow and Introductions to New Insights

3min

This week, Byrne Hobart is joined by Patrick McKenzie (patio11), host of the podcast Complex Systems, to discuss the complexity and endless fascination of financial infrastructures, the role of fraud in finance, talent spotting strategies and the importance of building networks.

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LINKS:

Byrne’s writing: https://thediff.co

Patrick's Newsletter: https://www.bitsaboutmoney.com/

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X / TWITTER:

https://x.com/patio11 (Patrick)

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

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TIMESTAMPS:

(00:00) Intro

(00:20) Historical origins of financial products

(01:22) Old infrastructure in finance

(05:02) Security vs Usability trade-off

(10:49) Trust dynamics in finance

(11:58) High-trust vs Low-trust environments

(15:26) Market dynamics and reputation systems

(19:41) Sponsors: Babbel | Beehiiv

(22:15) Who's your favorite fraudster?

(25:10) Crypto and money laundering

(30:31) FTX and money laundering theory

(36:59) Collapse of FTX

(40:55) Normative Aspects of Trust

(46:27) The Starfighter Project

(53:33) Value of networking and cold emails

(58:00) Managing information flow

(01:02:31) Outro

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"The Riff" with Byrne Hobart and Erik Torenberg

E39: Mental Models and Financial Infrastructure with Patrick McKenzie