Cryptocurrencies are used to conduct international financial transactions online without interference from financial institutions and governments. The interesting thing about cryptocurrency is that the industry is still very young and that the space is always evolving. New cryptocurrencies are popping up every day with certain projects clearly using blockchain technology better than others.
This webinar was an introduction to cryptocurrency, we talk about the history and background and answered questions like, what is cryptocurrency and why was it invented? We got an insight into the industry and market of cryptocurrency and the difference between fintech and cryptocurrency. We focused in on the largest cryptocurrency Bitcoin, explaingin how it works and why Bitcoin the largest.
The session was moderated by Linda Stanojevic, Director Avenue’s PMO, Sydney and our topic experts were:
- Henrik Andersson, Chief Investment Officer at Apollo Capital, Melbourne
- Eric Wall, Chief Investment Officer at Arcane Assets, Sweden
- Kalle Rosenbaum, Author and Bitcoin Consultant at Popeller AB, Sweden
Here are some more of the questions covered in the session:
- Crypto Currencies have been criticised for having no intrinsic value since they are not backed by anything. However, on a philosophical level, one can argue that gold does not have much intrinsic value either. In the end, the value of something is determined by what someone else is willing to pay for it. However, with Crypto Currencies the situation is more complicated. The barriers to entry are not too high with more than 4,000 cryptocurrencies in existence. In theory, you can have an infinite number of different Crypto Currencies with an infinite number of Crypto Coins created. Does this have an implication for the long-term value of Crypto Currencies?
- While 4,000+ Crypto Currencies are in existence, most of them are micro caps. Is there a long-term argument for having that many Crypto Currencies in the market? In other words, why would you look beyond the largest Crypto Currencies?
- Different Asset Classes appeal to different type of investors. Stocks and bonds are bought by both retail and professional/institutional investors. Investments in Venture Capital, Private Equity and FX (currencies) are usually done by professional/institutional investors. What is driving the investment in Crypto Currencies? What type of investment horizon do investors hold?
- When investing in traditional Asset Classes such as stocks, advanced investors do stock picking while less advanced buy funds or ETFs. Are there fund/ETF equivalents in the Crypto Market? Are they viable investment vehicles considering counter-party risks?
- Similar to the traditional Finance Industry where brokerages have gone bust (Lehman Brothers), so have also Crypto Currency brokerages/exchanges gone bust. What recommendations do you have regarding selecting exchanges/brokerages for Crypto Currency trading? Is a cold wallet a must?
- Currency trading is significant among institutional and professional investors. Besides so-called Stable Coins that have been specifically designed to peg their value against something else (e.g. US Dollars), Crypto Currencies have exhibited extreme volatility over time. Bitcoin value to AUD changed by $4 just in July. Do you see Crypto Currencies such as Bitcoin start stabilising and behaving like normal currencies? In what time frame and why?
Linda has comprehensive experience in financial services, start-ups, and telecommunications. She has worked with technology and product innovation in Telecommunications (Ericsson), traditional Financial Services (CBA, Westpac), FinTech and NeoBanks. She has a Master of Science in Engineering from the Royal Institute of Technology in Stockholm and is currently building a new Australian Business Bank, Avenue, together with a lean start-up team in Sydney.LinkedIn: www.linkedin.com/in/lindastanojevic/
Henrik Andersson, Chief Investment Officer at Apollo Capital, Melbourne
Henrik has over 17 years experience in global financial markets, with almost a decade on Wall Street. Henrik has extensive experience across three continents as a quantitative analyst, senior research analyst and in institutional equity sales. Henrik holds a Master of Science in Engineering Physics from the Royal Institute of Technology (KTH) and a Master of Science in Business Administration and Economics from Stockholm University. Henrik is a CFA charter holder. LinkedIn: www.linkedin.com/in/henrikandersson/
Eric Wall, Chief Investment Officer at Arcane Assets, Sweden
A well-known cryptocurrency expert in Sweden and internationally. He is the former head of blockchain and cryptocurrency at Cinnober. Eric holds a MSc in Engineering, Information and Communication Engineering Technologies from Lund University, and wrote his master’s thesis about blockchain technology. LinkedIn: www.linkedin.com/in/ercwl/