What the Crypto Shift Means for Your Money, with Tatiana Koffman

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.6 • 3.4K Ratings

🗓️ 3 December 2024

⏱️ 73 minutes

🔗️ Recording | iTunes | RSS

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Summary

#563: Bitcoin is hitting new all-time highs. Is this just another bull cycle, or are we witnessing a fundamental shift in how the world thinks about money? That's the question at the heart of our conversation with Tatiana Koffman, General Partner at Moonwalker Capital and author of "The Myth of Money." Koffman joins us to explain why Bitcoin might be considered "digital property" rather than just a currency. She breaks down how Bitcoin derives its value from mathematical scarcity – similar to how gold becomes harder to mine over time, Bitcoin becomes more difficult and expensive to create every four years through events called "halvings." The conversation moves through several key developments in cryptocurrency. We discuss the recent approval of Bitcoin ETFs and how traditional financial institutions like JPMorgan Chase (whose CEO Jamie Dimon once openly criticized crypto) are now embracing these products. Koffman shares insights about crypto adoption worldwide, from El Salvador's experiment with Bitcoin as legal tender to Dubai's emergence as a crypto hub. When discussing Africa's cryptocurrency landscape, Koffman explains how Nigeria's unstable banking system has driven crypto adoption, with many young people using decentralized exchanges to participate in global markets. She describes how some Nigerians have built significant wealth starting from nothing, using "airdrops" (free tokens given to early adopters) to begin trading. The interview includes a debate about inflation rates and economic data reporting, with Koffman expressing skepticism about official figures, while I push back on claims made without supporting evidence. Koffman also explains different categories of crypto investments, distinguishing between Bitcoin as a potential store of value and what she calls "meme coins" – speculative assets she compares to gambling. She provides context about stable coins, particularly USDC and Tether, and their role during the Silicon Valley Bank collapse. For those interested in investing in cryptocurrency, Koffman suggests starting with exposure to Bitcoin through regulated platforms like Coinbase or ETFs, while emphasizing the importance of proper security measures. She explains concepts like "cold wallets" and "seed phrases," comparing them to different levels of bank security. Looking ahead, Koffman discusses cryptocurrency's potential role in reducing dependence on the U.S. dollar, particularly in developing economies, while acknowledging the challenges of creating stable alternative currencies. Find Koffman's weekly newsletter at mythofmoney.com or follow her on Twitter and Instagram @TatianaKoffman For more information, visit the show notes at https://affordanything.com/episode563 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Today I'm bringing you a conversation that can divide rooms faster than almost any other topic in the world of finance.
0:06.2	And that is a conversation on cryptocurrency. If you want to elicit a strong response from anyone, just mention crypto at a dinner party.
0:15.5	Because some folks are going to get super enthusiastic and others are going to roll their eyes so hard it will get stuck
0:22.6	in the back of their head. Crypto is one of those topics where many people have automatic
0:28.1	knee-jerk reactions. You're either a total skeptic or you're a total enthusiast. It's an incredibly
0:34.0	polarizing topic. But here's the reality.
0:43.7	Whether you're a believer or a skeptic, the reality is that cryptocurrency is a significant player in our financial landscape and we cannot ignore it.
0:48.8	So whether or not you plan to buy cryptocurrency, understanding it, just at a minimum understanding it,
0:58.0	is a core piece of financial literacy. By definition, it's impossible to have an informed take
1:05.1	on something if you lack information about it. And so today's episode is intended to build your financial literacy
1:13.3	by bringing you more information about an asset class that is becoming a bigger and bigger
1:20.0	player in the financial landscape. Welcome to the Afford Anything podcast, the show that
1:26.0	understands you can afford anything, but not everything.
1:29.0	Every choice carries a trade-off. And that applies not just to your money, but to your time, your focus, your energy, your attention to any limited resource you need to manage.
1:37.1	So, what matters most and how do you make choices accordingly? Those are the two questions that this podcast solves.
1:42.5	We cover five pillars, financial psychology,
1:45.5	increasing your income, investing, real estate, and entrepreneurship. It's double eye fire.
1:50.7	And today's episode pertains to that third eye investing with a focus on the subcategory of cryptocurrency.
1:58.0	To aid in this discussion, I have invited Tatiana Kaufman to be our guest on today's
2:02.6	episode. Tatiana is a general partner at the Digital Assets Investment firm, Moonwalker Capital.
2:10.4	She's also the author of The Myth of Money. She has enormous knowledge about the current
2:15.9	cryptocurrency landscape, about its evolving role
	...

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