Cryptocurrencies were all the rage in the past few years on account of rising asset prices and volatility. Now, they are going through a bear market that has witnessed some popular currencies going totally bust. This phenomenon of an “asset class” going from hot to untouchable is not new. We’ve seen this again and again in different forms and proportions.
The current bear market in cryptos certainly impacts the investors, start-ups, promoters, and VCs who are directly involved in the crypto business. But, this bear market has second-order effects that may impact you as well. Listen in, as Deepak and Shray discuss the nuances of how the crypto bear market impacts you.
Show notes & references:
01:40 -How does the crypto bear market have an impact on stock markets & economy?
08:30 – The indirect knockdown effects of crypto bear markets
10:00 – Digging deeper which other segments of the economy will face a slowdown due to crypto?
15:30 – The trickling effect of hot money going away from crypto startups
16:30 – Misunderstanding of risk by crypto investors
20:30 – The debacle of fancy virtual assets – Luna & Terra
Refer: Terra’s stablecoin UST collapses, LUNA falls 99%
24:50 – Learnings from Zee TV & Dish TV saga of taking loans from Mutual Funds via bonds
Refer – Capitalmind post on Zee FMP Saga
34:00 – New investors moving to crypto with leverage and family savings basis TV marketing
39:00 – Why VCs don’t let failed crypto companies die? – No, it’s not for the right reasons.
48:00 – By Now Pay Later – bad small loans of small ticket size are a similar problem.
50:00 – Promotor fraud is now called Rug Pull.
Refer – What is a rug pull?
51:30 – The case for printing more money
54:30 – The commingling problem that stock exchanges have already solved. Crypto exchanges still fight that problem.
Refer: Deepak Shenoy tweets about these issues in Dec 2021
56:40 – Will Deepak one day invest in crypto someday in the future?
58:30 – One great thing that has come out of crypto markets
