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#571: Q&A: When Your Crypto Bet Pays Off TOO Well

An anonymous caller’s crypto investments have recently skyrocketed to 17 percent of her investment portfolio. Given the volatility of this asset, should she rebalance it or go all in?

Jocelyn wants to buy a house in three years but she’s reluctant to keep her sizable down payment in cash. What if she splits the difference and invests half the money instead?

Allison feels antsy holding $1 million in cash with falling interest rates on the horizon. How does she optimize this money while keeping it liquid enough to buy a house on an uncertain timeline?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

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

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.

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#498: Harvard Business Professor Explains Investing in NFT’s

Financial literacy includes understanding NFT’s, DeFi, and cryptocurrency. But it’s hard to separate education from hype.

Harvard Business School’s Scott Duke Kominers, a professor in Harvard’s Entrepreneurial Management Unit, and a Faculty Affiliate of the Harvard Department of Economics and the Harvard Center of Mathematical Sciences and Applications, joins us alongside Web3 expert Steve Kacizinsky to explain the financial, technological and social significance of NFT’s.

NFT’s, or Non-Fungible Tokens, are a rapidly growing digital asset. Comprehensive financial literacy requires understanding NFT’s. While NFT’s are emerging opportunity for investment diversification, they are also highly speculative and volatile.

NFT’s also represent how digital ownership is evolving, and have implications for the economic futures of a myriad of industries. These assets stand at the intersection of art, technology and commerce.

This episode provides a deeper understanding of NFT’s, taught by a Harvard Business School professor and a Web3 expert.

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#491: Why Bitcoin is Back in the News | First Friday

Welcome, Emma Chamberlain’s fans!! Thanks for joining the Afford Anything community. You can find out how to escape the 9-to-5 grind at affordanything.com/escape

Once a month, on the First Friday of the month, we explore the hot economic and money stories that are dominating the headlines. These days, Bitcoin is back in the news. As of Friday morning, March 1st, its price ranged around $62,000, which is pretty darn close to its previous all-time high of $68,700.

But why?

Crypto was hot in 2020, but it faded from memory in recent years. What’s behind the comeback? And what does that tell us about how investments become fads?

Find out in today’s First Friday bonus episode.

Bonus listening: https://affordanything.com/325-bitcoin-for-beginners/ for a deep dive into understanding how Bitcoin works.

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