Why I’m Excited About Fintech, Cryptocurrency, and Viable Liquidity

Kumar Thangudu

June 15, 2017

I spend a lot of time talking to top investors and technology luminaries at Equidate. If you’re an accredited investor, you can sign up and learn more about it. After a few months of studying more financial policy, I wanted to share some of the things I’ve learned about US government and finance. You can read my interview with industry titans Tim & Billy Draper on the Equidate blog.

The US government at any given moment has no idea how much money is hiding in how many potential bank accounts and under how many potential couches and mattresses.

This makes it monstrously difficult to know exactly how much currency to print or destroy each month.

Did you know the government arbitrarily destroys and prints hundreds of millions of dollars a month deciding upon an interest rate almost out of thin air?

They do this through 4 complicated mechanisms:

  1. the FOMC(+)
  2. Open Market Operations(+)
  3. Contractionary Monetary Policy(-)
  4. Reserve Requirement increases(-). I don’t know that they’ve ever implemented this one, this would require banks to hold more money.

The US government creates credit out of thin air and just as easily dissolves it.

The USA has a shrinking middle class. In the USA, the thing that keeps the middle class down is a non-viable interest rate.


Africa has the fastest growing middle class on the planet. Their interest rate is 7%-ish last time I checked. Look at these charts of interest rates in African Countries.

The Significance of Cryptocurrency

Remember earlier, when I mentioned that the Government uses their best guesses to add and remove credit from the money supply and afflict the interest rate?

Well that’s where cryptocurrency comes in, there’s no guessing as to how much is out there, you can see everything.

The blockchain reveals an open-ledger of all amounts.

Cryptocurrency to a certain extent has solved some very interesting problems as they relate to the conventional way of banking and solving the question of “How much is out there?” and ”Where is it?”

It topples the way governments traditionally decide upon increasing/decreasing credit out of thin air and to decide the fate of their middle class.

Everyone now knows how much crypto is in how many wallets and exactly how much is in each wallet. You need passwords of sorts to access the wallets.

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