An insightful, and very balanced, synopsis from the FT of the most divisive debate in Fintech at the moment - Cryptocurrencies.
On one side we have banking aristocracy such as Jamie Dimon, CEO of JP Morgan, declaring that Bitcoin is a fraud and that he will fire any employee who trades it. On the other, are world renowned Venture investors, such as Sequoia Capital. Who is right?
In our modest job as investors in the London Fintech scene, we work hard to maintain an open mind and try not to think we can predict the future. We prefer to back great entrepreneurs on their journey, and solve problems as they arise. The finished product is often quite different to that first envisaged, but no less exciting when it works.
In unofficial online markets where these and other digital tokens are traded, the mania has hit even more bizarre levels. The value of Ripple — at five years, a cryptocurrency veteran — soared this year on a wider boom that was led by bitcoin. Ripple’s notional value, including coins held by the company for later sale, jumped from $500m at the start of the year to more than $35bn, before falling back to $19bn.