Is this the crypto inflection point we’ve been waiting for? 

May 07 12:05 2020 Print This Article

If you spend a lot of time in crypto (like we do here at V1), it can be easy to lose sight of how non-crypto investors and entrepreneurs think about the space. The huge ICO run-up in 2017 brought a lot of attention to the vertical. Since then, many have stopped following the progress or have become downright negative about the space.

But I see three big trends that everyone should be paying attention to right now – these could serve as inflection points for the whole space:

The economic fall-out from the COVID-19 crisis in emerging markets will drive adoption of digital currencies.

Emerging countries will be hit much harder than developed countries from the economic fall-out of COVID-19. They don’t have the fiscal and monetary power to counter the economic problems which will in many cases result in a currency crisis. Such events will push a lot more people to put their money in easy to buy digital currencies, either native cryptocurrencies (BTC – this might already be happening in Argentina) or digital versions of the USD (like USDC or USDT). 

Read More

About Article Author

Version One VC Blog

Version One is an accelerator for innovative start-ups with a fresh approach to solving important and difficult problems. They invest in category leaders that leverage network effects to build a defensible product. Version One has invested in over 50 internet companies such as Frank and Oak. Angel List, Booster, and more.

  Categories:

Related Items

The state of COVID-19 testing

In these unprecedented times, we know that controlling the spread of novel coronavirus requires social distancing and testing. While all of us are doing our parts to stay at home, there’s a lot of confusion, chaos and frustration surrounding coronavirus testing in the US.  Before going further, ...

Security tips for work from home

With many companies moving to work from home (WFH) over the past few weeks, our portfolio company Kobalt (which provides security as a service for small-and mid-sized companies) has been getting a lot of calls from organizations that have had suffered incidents related to remote work. This is not o ...

Version One quarterly news and COVID-19 response

This has been the longest quarter ever. Early January seems like an eternity ago. Countries, communities and households have been turned upside down.  This time of year, we normally provide a portfolio update that highlights the various product launches, accolades and funding announcements from th ...

Thoughts on the State of DeFi

The last couple of weeks have been quite a test for cryptocurrency markets in general and DeFi in particular. On Black Thursday (March 12), BTC/ETH prices declined by ~50% and DeFi’s flagship project, MakerDAO, ended up with ~$5 million USD in unbacked DAI. You can read Tom Schmidt’s excellent ...

BTC + DeFi = FTW

I recently shared some thoughts about DeFi in light of recent market turmoil. While I remain extremely bullish on p2p finance in the long run, I believe there are at least 3 major questions to answer in the short term: 1) what blockchain/layer is most appropriate for DeFi scalability, 2) what use c ...

Is this the crypto inflection point we’ve been waiting for? 

If you spend a lot of time in crypto (like we do here at V1), it can be easy to lose sight of how non-crypto investors and entrepreneurs think about the space. The huge ICO run-up in 2017 brought a lot of attention to the vertical. Since then, many have stopped following the progress or have become ...

Question and Answer session on The Citizen’s Guide to Climate Success

Here is the video recording of my Question and Answer session on The Citizen’s Guide to Climate Success on May 12, 2020. Thank you to the group, Climate Crisis Legislation Needed Now, particularly Ken Johnson and Kathleen O’Hara. ...