Loading...
Answers
MenuWhat do finance professionals want to know about bitcoin and cryptocurrencies?
I'm creating an “Intro to Cryptocurrency and Blockchain Technology” talk to help educate family offices and traditional finance professionals about the risks and benefits of bitcoin and blockchain technology.
I'm not a finance guy, so I'm curious what Qs people in this field have re BTC.
Answers


I have NO idea BUT...
Here's a couple of things I would do if I were in your position and trying to find out.
1. Look at the questions on Quora related to this topic.
2. Look at the questions and topics being discussed in LinkedIn groups.
3. Survey the people you intend to give your talk to before creating the talk.
4. Search for the topic using Twitter search and Facebook search.
5. Go to Amazon, search the words "Crytocurrency" etc. and see what books have recently been released about the topic.
6. Find a really popular website for finance professionals and ask to run a survey to their audience through their mailing list, website etc. re Bitcoin.
Use this survey info to inform your talk.
If I were to pick just one, I'd go with the last one.
Good luck with your talk.


Probably the most interesting aspect in Bitcoin or blockchain for finance folks is the concept of payment channels and how they work and how will that change the perception of cash flow and micro payments.


First, you need to understand which financiers you are applying to: bankers, investment bankers, financial directors of companies, insurers or project financiers?
But one way or another, there will be two main questions: How much will it cost our company and How much money will it bring to us?
Any technology should solve some problem of customers and solve as cheaply as possible. Then it will be in demand and the company will get a significant competitive advantage.
Meanwhile, the Crypto-currencies and everything around them can be compared to the opening of the Old World of America - We know that there is something there, but we can not yet estimate the scale.


I was a licensed financial advisor for many years and served as a partner in a boutique hedge fund. I am also a Bitcoin and crypto investor.
I educated financial advisors and family offices on various investment ideas for 15 years and heard many questions along the way about bitcoin.
Their primary concerns centered around:
1) is it real and lasting technology or just a fad?
2) why is it necessary when we already have free payment systems like Venmo and Zelle?
3) will the various central banks and regulatory bodies around the world allow it to succeed?
4) how do I provide some exposure to portfolios in a safe manner?
I'm happy to schedule a call to help with crypto and other investment questions you may have. Hope this helps!
Related Questions
-
Do companies in the U.S. have to charge a sales tax on digital products, e.g. Info products?
There are a lot of moving parts to this question. First, you need to determine in which states you have "nexus" and then determine do those states require you to charge sales tax, as each state has different rules. As an example, MA requires salesforce.com to charge sales tax to MA customers but does not require newyorktimes.com to charge sales tax. The difference is that users can manipulate data on salesforce.com vs. neworktimes.com is read only. This example can only be applied to MA, Arizona, Illinois, New York, Texas, Pennsylvania and Washington State (as of now). There are also "click-through" and "affiliate" nexus rules that need to be considered. Be careful, as state and local taxation has become a very hot due diligence issue in M&A transactions. So, if you plan to sell your business in the next few years, you want to get this right. Also, the Officers and Directors are personally responsible for uncollected Sales tax. You are best to get an expert to review your sales tax compliance, as it is a very specialized area and changing constantly. I am not an expert, but know of some firms that offer this service at a very reasonable rate. Feel free to call me. Thank you, Joe Faris Accountalent Management Corp. 45 Prospect Street Cambridge, MA 02139 Tel (978) 621-0759 Fax (978) 278-1517 Website: www.accountalent.com LinkedIn: www.linkedin.com/in/farisjoe/ Twitter: @accountalent
-
When recording income for a marketplace startup, is it typical to use the gross transaction or just the fees collected per payment?
You usually only recognize the commissions as revenues and use the term "Gross Merchandise Value" (GMV) to describe the size of the marketplace (value of all transactions going through the site)
-
In what moment I inject capital to the startup?
The other answers are good, and here is one practical approach to handling this. First, the accounting capitalization (10m x $0.001 = $10k) is really irrelevant. In fact, we went for 10m x $0.0001 = $1k. Whatever you pick, your company after formation will show $X of assets (the cash in the back) and $X of shareholder equity. So far so good. You then need to start spending money through the company. Rather than issue more shares, you can lend the money to the company; write out a loan agreement (probably something like a balloon payment 10 years out with 0% interest) and deposit the check. If you're doing everything at the same time, and want to have $1k of shareholder equity with a total of $25k to spend, then deposit the $25k check and call it $1k to purchase the founder's shares and $24k loan. In this case, your company now has $25,000 assets/cash, $24k liability (to you) and $1k shareholders equity: assets = liabilities + shareholder equity. Hope that helps clarify things a bit...
-
Payroll is killing me/wasting my time. What inexpensive small businesses can help consultants manage payments to freelancers/consultants?
In normal cases each subcontracting partner is self responsible for its accounting. Depending on the country you are and kind of business you running, you need to find out what possibilities are possible. For sure there are services you can use, check out payroll.intuit.com for example. There they offer accounting/payroll services for small businesses. Hope I could help you! If any further help needed, let me know! Regards Behzad
-
What's a "meta coin" in the Bitcoin world?
Meta coins are just another name for altcoins that are issued on the ledger of another coin or cryptocurrency platform. IE Ripple, Mastercoin, Ethereum, NXT are example of standalone blockchains/legers where you can issue new coins that transact on top of that network. metacoins can also be referred to as Digital Assets, Smart Contracts, DACs, DAOs, etc. There's a lot of buzz words around altcoins, the terms are fragmented since the industry is just starting.