Blockchain Holds the Key to a Better Financial System | #𝗦𝗔𝗟𝗧𝗡𝗬

TL;DR

Peter Smith, co-founder of blockchain.com, discusses the ups and downs of the crypto market, the challenges of being an operating business in the space, and the importance of long-term thinking in building an enduring crypto company.

Transcript

foreign wild year in crypto I think here in 2022 obviously a lot of ups and downs which is kind of the norm I think actually in crypto um so it's good to be joined up here for this uh little Fireside here with a man who has been around for a lot of those ups and downs as a co-founder who's been building in the space since 2011. uh Peter's good to c... Read More

Key Insights

• 👨‍💼 The crypto market is known for its volatility, which presents both challenges and opportunities for businesses operating within it.
• 🏛️ Building an enduring crypto company requires navigating market fluctuations, mitigating risk, and prioritizing customer safety.
• 🤔 Long-term thinking is crucial in the crypto space, as it aligns with the vision of creating a sovereign financial system on the internet and digitizing assets.
• 💗 The interest in NFTs is growing, and with matured understanding, they are expected to become more attractive to retail customers.
• 😤 Regulatory considerations and navigating different markets globally require a dedicated regulatory and licensing team.
• 👾 Focusing on institutional products and automated services can help meet the demand and keep pace with the evolving market.
• 👻 Expanding into different markets, including Europe, Nigeria, and Latin America, allows blockchain.com to meet the crypto adoption needs of diverse regions.

Questions & Answers

Q: How does the volatility of the crypto market impact operating businesses in the space?

The high volatility of the crypto market poses challenges for operating businesses, as their cost structure is in fiat currency while their business performance is linked to the crypto market. This makes it difficult to navigate market fluctuations and assess the profitability of the business.

Q: How did blockchain.com manage to weather market shocks better than others?

Blockchain.com took a more conservative approach compared to its competitors, which helped them mitigate risk. They also proactively reduced the size of their lending book before the market shock, which made it easier for them to navigate the subsequent volatility. Additionally, they had a risk model in place that prepared them for worst-case scenarios.

Q: Who bears the responsibility for situations like the three arrows Capital collapse and the risks associated with it?

The responsibility for such situations can be attributed to various parties, including exchanges, projects, and even the individuals involved. There is an ongoing debate about the role of regulation and whether it should intervene to protect users. Overall, blockchain.com prioritizes customer safety when deciding which assets to offer on their platform.

Q: How does blockchain.com approach marketing and attracting new customers?

Blockchain.com recently formed a partnership with the Dallas Cowboys, as they identified the team's popularity and the high percentage of crypto-interested fans as a strategic opportunity for marketing. They aim to educate and empower retail customers, focusing on building a long-term relationship rather than optimizing for short-term revenue.

Summary & Key Takeaways

• Peter Smith reflects on the volatility of the crypto market, noting that it is both familiar and new. He highlights the challenge of being an entrepreneur in the crypto space and the high volatility that comes with it.

• He discusses blockchain.com's journey and the importance of iterating and evolving to adapt to market conditions. He specifically mentions the company's focus on institutional products and crypto lending, which has helped them weather market shocks.

• Smith emphasizes the need for long-term thinking and sustainability in the crypto space, as well as the importance of keeping customers safe and educated. He also mentions the potential of web3 and the growing interest in NFTs.