The Crypto Landscape with Arianna Simpson [Invest Like the Best Ep. 84]

My guest today is Arianna Simpson, who has spent her career in an around the world of technology working at startups, Facebook, and now in venture capital as an investor focused on the world of cryptocurrencies. I met Arianna when I hosted a panel at a big investing conference in New York City and she was one of the panelists. On the panel, I found her style to be very straightforward and compelling. It is clear that she loves to learn and that the best manifestation of her style of learning is investing in technology.

In our conversation, we discuss broad trends in crypto that we haven’t spent much time on before: decentralized versus centralized exchanges, privacy coins, and evaluating a founder or early team. We build a framework for learning about this new asset class, discuss the importance of travel, and the value of pushing oneself outside of comfort zones.

Please enjoy our conversation

 

Show Notes

2:12 – (First question) – How to teach someone else to build an investing philosophy around crypto

 

4:00 – The major risk factors to investing in crypto

 

6:28 – best practices for mitigating risk

 

7:39 – What factors to think about when it comes to whether a token will lose all value or not

 

8:39 –  Taking a pulse of the investment community on crypto

 

11:36 – How she heard about and became interested in crypto currencies

 

12:34 – Are people really using crypto currency as a hedge against rampant inflation

 

13:52 – Investing thesis in the space

 

14:07 – Arianna’s systems for learning about cryptocurrencies and staying up to date on them

 

15:19 – Arianna’s take on the issue of increasing transactional through put

 

16:49 – Layer 1 solutions and making it all scalable on a blockchain

 

17:56 – her take on the fat protocol thesis

 

20:32 – Defining utility vs security tokens

 

21:54 – evaluating different coins

 

21:02 – Why cross currency swaps are important and how they work

 

26:17 – What are the chances of a scenario where there’s just one token and everything is built off of that one

 

28:02 –  Comparing centralized and decentralized exchanges

 

29:47 – How the traditional investing world is going to regulate transaction involving cryptocurrencies and view security around those transactions

 

31:54– Impact this will have on capital formation

 

33:44 – Evaluating teams behind crypto companies

 

35:48 – The importance of gut when evaluating people

 

38:47 – How Arianna’s global upbringing impacts her thinking on the technology

 

39:51 – What countries or regions have had the largest impact on Arianna’s investing philosophy

 

42:41 – Doing things you’re not qualified for

 

43:59 – Gender imbalance in crypto and what can be done to shift that

 

45:28 – Most recent thing that has gotten Arianna excited in the crypto space

 

46:15 – Explaining Zero X

 

47:33 – How her views on reading have evolved

 

48:54 – Kindest thing anyone has done for Arianna