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Jul 25, 2022

Crytocurrencies were all the rage in 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 pehnomemnon 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 crpto bear market inpacts 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

If you loved listening to Deepak talk about money and finance. You'll also find his book quite interesting - You can buy the book here – Money Wise.