This Week in Fintech ending 19th February 2021

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This Week in Fintech ending 12 February 2021

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

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Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote Tesla buys $1.5 billion in bitcoin. Are you buying?

Today is Valentine’s day and many people around the world are celebrating the day with their loved ones. HODLing bitcoin is like being in a relationship, with its share of ups and downs. But on this day, like on past Valentine’s days, bitcoin once again showed us some love. The price of bitcoin today reached a new record above $49k, rising as high as $49,344 on Coinbase. Bitcoin’s market cap stands at $910 billion, with the entire cryptocurrency market valued at $1.5 trillion. There is a momentum in the cryptocurrency market, that’s been building up for a while now. We’re seeing more apps that let users buy and sell cryptocurrencies using their dollars, fund managers moving more money to cryptocurrencies and big corporates using cash reserves to hedge their risk with bitcoin. An SEC filing by Tesla, which became public knowledge last week, kicked off bitcoin’s new price highs. Bitcoin, which was already climbing, soared after Tesla announced it had purchased $1.5 billion worth of bitcoin, with the company’s funds. The company also said that it plans on accepting bitcoin for payments in the future. Tesla made it clear in its filing, that it sees bitcoin as a chance to diversify its cash and cash-equivalent holdings. Tesla’s move confirmed, once more, what we already know: Bitcoin has finally moved from Silk Road to Main Street.

Editor note: Bitcoin bears need to ask if they are comfortable betting against Elon Musk and many other smart entrepreneurs and investors.

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote:   Part 3: Shorting can be a valuable price discovery mechanism if done right.

Hedge Fund used to have a precise meaning. Limited Partners (LPs) invested in Hedge Funds who were bearish in order to “hedge” the rest of their portfolio which was long ie bullish. Hedge Funds then later came to simply mean a bunch of very smart people getting paid a lot of fees by LPs to make them a lot of money.

Editor note: At the risk of sounding like an apologist for the reviled hedge funds, this post explains how shorting can sometimes be valuable service.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 17 February 2021.

This weekly snapshot is the news that matters in the Stablecoin market.

Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Bitcoin hoarding aka HODL is logical but prevents it becoming a medium of exchange.

Tesla Model 3 price was shown above Bitcoin on CoinMarketCap for many days. A few months ago, you needed two Bitcoin to buy one Tesla Model 3. As I look at CoinMarketCap today I can see selling one Bitcoin , buying one Tesla Model 3 for $37,990 and having lots of spare change. Or should I HODL Bitcoin and delay gratification on Tesla?Bitcoin bulls such as myself think you will be able to buy two Tesla Model 3 cars with a single Bitcoin in the near future.

So we hoard rather than spend.

Editor note: Some entrepreneur somewhere is figuring out how to fix this. This post outlines one technically and commercially feasible solution. 

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: The Internet Of (Insured) Things Part 2: Connected Homes

Savvy consumers are cozying up to “Internet of Things”, welcoming smart doorbells, access controls and monitors that report incidents. These devices autonomously control parameters, bolster security and delight through optimizing home entertainment. Insurance carriers’ prognosis is that such gadgets can unlock pent-up policyholder satisfaction while simultaneously lowering risk. Market research characterizes the global smart home market as a $78.3 billion market that will grow at 11.6% over next 5 years.

Editor note: Read this Part 2 to understand the future of home insurance.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote: XBRL News about trade reporting, legal identifies and risk management

Editor note: This weekly snapshot is the news that matters in the XBRL market.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote: Alt Lending for week ended 19 February 2021.

Editor note: This weekly snapshot is the news that matters in the Alt Lending market.

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