Insider Insights February 2021 Issue

New Heights for Bitcoin Price and Adoption, Paving the Way for Altcoins

February marks another wild ride for Bitcoin, starting the month at roughly $34,000 and reaching an all-time high of $58,641 with a pullback to approximately $50,000 as of the writing of this article. This has resulted in a concomitant rise in chain activity, with a matching all-time high of unique addresses sending and receiving Bitcoin. This has resulted in institutions bringing Bitcoin access into both the virtual world through platforms and physical, real-space kiosks to drive further adoption.

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Insider Insights January 2021 Issue

Bitcoin Accessibility Marches On as Rally Continues

Bitcoin’s Rally Continues On Unabated

Bitcoin’s massive rally at the end of 2020 and proceeding into 2021 is no accident. One of the most common phrases among investors when comparing it to 2017’s rally is “this one is different.” 2017’s infamous rally and then crash was driven by speculation – when the house of cards fell, there was no real weight or backing behind it. What makes 2020 different is that the house is built on rock rather than sand, with an ever-swelling user base and the financial investment of some of America’s biggest institutional players.

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Insider Insights December 2020 Issue

Bitcoin Reaches New All-Time High, Altcoin Spring is Near

Bitcoin continues its frenzy, reaching yet another all-time high above $28,000 on December 27, 2020. This represents a gain of more than 200% year to date, and one of the best years for the asset to boot. However, the digital asset sphere is more than just Bitcoin, despite how often it takes the spotlight. Other coins have different value propositions and fill certain needs more effectively than Bitcoin, and the rising tide generated by Bitcoin will lift all boats in the system. Often dubbed “altcoin season” by its proponents, the positive press and movement generated by Bitcoin will inevitably spark research and interest in lesser-known coins.

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Insider Insights November 2020 Issue

Bitcoin’s Historic Bull Run – Uncharted Territory and New Highs

Digital assets are finishing off an incredibly turbulent year with a bang, with both Bitcoin and altcoins finding new highs and old favorites climbing closer towards previous highs. Positive pandemic news in the form of extremely encouraging vaccine results was released which sent traditional markets soaring. Despite this, digital assets markets did not lose their edge, even though they were positioned as a safe haven asset to sit alongside gold over the prior year. The strides that digital assets were making in accessibility and investment levels over the year have finally paid off, which led to an explosive price gain once all the underlying factors were finally realized.

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Insider Insights October 2020 Issue

 Digital Assets Vie for the Safe Haven Throne

As economic uncertainty lingers, several large institutional investors have made not-entirely-expected purchases of Bitcoin, helping to buoy an already bullish market. Fiat currency devaluation has driven investors to seek new avenues to ride out the storm. Although Bitcoin has made inroads into this space in the past, it has enjoyed several new votes of confidence as a long-term asset class over the prior month.

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Insider Insights September 2020 Issue

September 2020: Liquidity Miners Chase Rewards and Drive Competition Within DeFi

Decentralized finance (DeFi) is an extension of the original use case for cryptocurrency and digital assets: a means to transact value without the interference of third party middlemen or governmental systems. While digital assets have performed well in peer to peer transactions, performing wider services such as credit and lending have since eluded cryptocurrency developers. As the pandemic has constrained access to credit and caused banks to lower interest rates, customers have begun searching for alternatives, leading to the explosive growth of decentralized currency; banking services provided more cheaply and transparently on the blockchain.

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Insider Insights August 2020 Issue

Decentralized Finance: An Explosive New Paradigm Challenges Existing Finance Systems

 person using smartphone and MacBook Pro

Decentralized finance (DeFi) is an extension of the original use case for cryptocurrency and digital assets: a means to transact value without the interference of third party middlemen or governmental systems. While digital assets have performed well in peer to peer transactions, performing wider services such as credit and lending have since eluded cryptocurrency developers. As the pandemic has constrained access to credit and caused banks to lower interest rates, customers have begun searching for alternatives, leading to the explosive growth of decentralized currency; banking services provided more cheaply and transparently on the blockchain.

 

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Insider Insights July 2020 Issue

Artificial Intelligence is the Future of Venture Capital

 

The amount of available data to make decisions continues to explode with each passing year and threatens to overwhelm human operators. After spending decades as a niche field in academics, over the past twenty years AI has finally reached the hands of the general public through hastening compute power and freer exchange of information over the Internet. While it won’t strictly do your job for you, it still is an invaluable tool that should be put to use whenever applicable.

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Insider Insights June 2020 Issue

Fintech’s Priorities Shift Due to Market Winds

 

Fintech is a sector that encompasses a bevy of offerings, from credit and lending, regulatory compliance, personal finance, insurance, capital markets, money transfer, to real estate. This umbrella consists of industries with wildly different priorities and needs, so shifting market conditions could benefit some industries and harm others. The pandemic has changed the course of how business is done, which will have knock-on effects throughout the entire sector

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Insider Insights May 2020 Issue

Insider Insights May 2020: Opportunities in Essential Businesses Abound

 

Although the effects of the COVID pandemic are not over, over the past month there have been several signs that the picture has been changing for the better. On May 26th, 2020, the New York Stock Exchange trading floor re-opened after two months, after which the Dow Jones jumped 530 points. Non-essential businesses across America have begun to reopen with distancing guidelines in place, and testing has doubled over the past month while nationwide cases continue to slowly decline.

DJIA Year in Review (Source: MarketWatch)

Previously, it was discussed that much of the economic damage was caused by logistics problems and impediments to business operations rather than wider systemic depression. As businesses reopen and restrictions begin to slacken, there appears to be optimism in the economy, evidenced by the Dow Jones having clawed back many of its losses over the prior two months, although more work remains to be done. Nevertheless, the pandemic will continue to operate how businesses operate for the foreseeable future, which will change the venture capital map significantly.
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Insider Insights April 2020 Issue

Insider Insights April 2020: COVID-19 as a Black Swan Event, and How to Navigate It


 

The pandemic qualifies in the strictest sense as a “black swan” event – an extremely rare event with severe implications for an economy’s function. They are destructive, uncontrollable, and unpredictable, although many will incorrectly claim in hindsight that they should have been seen coming. Black swan events can come from many sources, whether they are geopolitical, economic, or natural; previous examples included events such as 9/11 and the dot-com bubble.

By any definition of the event, COVID-19 fits the bill, but where it differs from other events is in both the size of the event and the number of industries that it touches. The pandemic has affected economies in a heretofore unique way in that it has prevented labor from being accomplished in an asymmetric and uneven way. Although workforces have moved to adapt and workers have been able to accomplish job duties from home, the scale and amount that can be done remotely varies widely between industries. This has caused either weakening or complete breaking of supply chains in some cases. Services and tourism industries in particular have been the hardest hit, and unemployment has spiked to a higher point than the 2008 recession at the steepest rate on record.
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Insider Insights March 2020 Issue

Insider Insights March 2020: COVID-19 Upends Markets and Provides Digital Asset Opportunities

The COVID-19 outbreak has temporarily upended life across the world, radically altered how businesses operate, and left global markets reeling. It is projected to be the largest epidemic the United States has faced in a generation, and as such, there is a great deal of uncertainty about the long-term implications for the economy and investment ecosphere. Fortunately, there remain options in these uncertain times, and despite economic turmoil, digital assets have a center-stage role to play in how things shape up.
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