82 - Investing in the Future | Cathie Wood, Chris Burniske, Yassine Elmandjra
Sep 13, 2021
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Cathie Wood, Founder and CEO of Ark Invest, shares her visionary insights alongside Chris Burniske, a crypto pioneer and partner at Placeholder VC, and Yassine Elmandjra, lead analyst at Ark. They discuss the clash between traditional finance and the innovative spirit of cryptocurrency, unpack blockchain's transformational potential, and explore the evolving landscape of DeFi and NFTs. The trio passionately advocates for a shift toward forward-thinking investment strategies that embrace the future of assets like Ethereum and the disruptive power of technology.
Invest in the future with exponential growth and technological advancements.
Ethereum's proof-of-stake disrupts traditional financial perceptions and introduces new asset valuation standards.
Ether's evolving role as a productive financial asset reshapes investment paradigms and challenges traditional banking stability.
Deep dives
Discussion on Impact of Crypto Adoption on Traditional Financial Institutions
The escalating interest in yield and Ethereum's robust decentralized finance landscape have started to concern traditional banks, reflecting in negative loan growth forecasts by leading banks like J.P. Morgan. The search for yield beyond the traditional bond market and the growth of DeFi is beginning to challenge mainstream banking models, potentially hollowing out banks and impacting their growth expectations.
Ethereum's Role in Shaping Global Yields and Investment Appetite
Ethereum's proof-of-stake mechanism offers a risk-minimized yield, disrupting traditional financial perceptions of asset valuation and capital coordination. As Staking provides a risk-free rate in crypto terms without nation-state dependencies, it introduces a new standard for valuing internet-native assets, potentially influencing the global economy's yield ecosystem.
Strategic Evolution of Evaluating Ether as an Asset
The evolving perception of Ether as a productive financial asset beyond Bit Coin has shifted the narrative to Ether as a distinct commodity. The focus on Ether's generative capabilities through staking introduces a novel economic guarantee, diverging from traditional monetary norms and establishing Ether as a new form of economic institution within the digital landscape.
Crypto's Disruption and Changing Investment Perspectives
The growing interest in Ether's yield mechanisms and Ethereum's unique capabilities are reshaping views on investments and risk metrics traditionally based on bond market yields. The expansion of DeFi opportunities, especially in borrowing and lending, along with the development of risk-minimized rates in crypto is forming a new frontier that challenges conventional investment paradigms and traditional banking stability.
The impact of Asia on companies like Boeing
Asia's impact on companies like Boeing where a small percentage of sales but a significant percentage of growth is discussed. When Asia experienced a downturn, Boeing's earnings suffered due to the substantial growth impact. This scenario highlights the importance of considering growth percentage, not just sales percentage, when assessing market exposure.
The evolution and impact of FinTech in the banking industry
The evolution of FinTech and its disruptive effect on traditional banking is explored, with a focus on companies like Visa, Mastercard, PayPal, and Square entering the crypto space. The rise of digital wallets and their comparison to traditional bank branches as well as the changing dynamics in customer acquisition costs are highlighted. The discussion delves into the role of digital wallets in reshaping the banking industry and the potential dominance of companies integrating FinTech and DeFi solutions.
Cathie Wood is Founder, CEO and CIO of Ark Invest, the investment management firm specializing in disruptive sectors. Yassine Elmandjra is an analyst at Ark, and Chris Burniske is the former blockchain lead at Ark and is now a partner at Placeholder VC. We’re incredibly excited to bring Cathie on the podcast for her industry-leading insights and perspective on the innovative investing space.
The thesis is simple: invest in the future. As a society, we are entering a new age of exponential and unprecedented growth, afforded by compounding technological advancements and a turning point of innovation. Ark Invest is poised to capitalize on these opportunities and has eyed cryptoassets as an important vehicle for this substantial, societal change. Dive in and learn about Wright’s Law, managing haters, Ark’s thoughts on the triple point asset, and DeFi.
----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures
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