Two firms, Paxos and Gemini (backed by the Winklevoss twins of Facebook fame), received regulatory approval for their stablecoin this week. What are stablecoins and why does this matter? Should you invest in them? Let’s take a look. What Is a Stablecoin? A stablecoin is a cryptocurrency pegged to a more stable asset like gold or … Read more
The end of the summer means a couple of things aside from cooler weather. One of those things is the fall conference season in fintech. Are you going anywhere good? This time of year also means lots of news in the industry so I thought I’d review some of the news I found particularly interesting. … Read more
One of the best use cases for Bitcoin and cryptocurrency is its use as a ‘crisis’ currency. A crisis country with hyperinflation, like Venezuela, has a currency (the Bolivar VEF) that is a ‘softer’ form of money than harder forms of money like fixed supply cryptocurrencies. Gresham’s Law is an economic law that states that … Read more
Hong Kong-based Bitcoin exchange OKEx has a big problem. And this problem reminds us about exchanges. Whether decentralized or not, there is a potential risk with exchanges from the exchange itself, like when Bitfinex was hacked back in August of 2016 when 120,000 BTC were stolen. This is known as counterparty risk and we always have … Read more
The mantra in marketplace lending is to build, buy or partner. When people say this they are talking about fintech firms and banks and how they should work together. One side left out of this equation is fintech platforms getting into lending for their own customers like Amazon, Paypal, or EBay. All are or soon … Read more
Most people think if you want exposure to the cryptocurrency markets or blockchain, you have to buy Bitcoin or Litecoin or Ethereum, or all 3. While I would start there, this is not the only way to get exposure to these markets. The biggest thing that marketplace lending and the cryptocurrency world have in common, … Read more
Bitgive is a long-running Bitcoin-based charity since 2013. Brian Armstrong, Coinbase CEO (link down the right side if you want to use CB to buy or sell crypto) just announced his crypto-based charity fund GiveCrypto. The Pineapple Fund distributed millions in crypto to various charities. What does this have to do with a map of Puerto Rico? … Read more
Marketplace lenders are having a tough time getting a combination of consistent volume and good loan portfolio performance from business lending. Why is small business lending so difficult to master? Is it tougher to understand than consumer lending? Most people say yes. When I was at Lend360 in Dallas last fall, I heard a presentation from … Read more
Did you know that one US city handles 70% of all credit card, debit card, and loyalty rewards program card transactions for the whole country? And do you know what city it is? That city, Atlanta, GA was the host of the Fintech South conference this week in the new Mercedes Benz Stadium downtown. Atlanta is … Read more
The drop in Bitcoin and altcoin prices in 2018 has done nothing to dampen the frenzy around the cryptocurrency markets. Those already invested in cryptos of some kind may be inclined to ask the next question. How do I get more at these lower prices? To get more, would mining be a good choice for … Read more