For the last few weeks, I’ve been working with one of my classmates (Matt Cantor, @mattycantor) on a bitcoin research project for a local fin-tech focused VC. The general idea is to figure out why normal people might use bitcoin and how they would go about actually using it.
We started by learning quite a bit about bitcoin, its origins, the architecture and theory behind it. Note, this is not part of the scope of this project, but we at least needed somewhat of a knowledge base to ask the right questions.
Over the next few weeks, we did a bunch of stuff with bitcoin that a normal person may presumably want to do, including:
- Figure out what a wallet is, determine which one to use and deposit money into it
- Transfer money between wallets
- Use wallet to pay for an item online and then return the item (though the item we bought was pretty awesome)
- Dig into the various exchanges and trading platforms and tried to figure out why they exist. My work in fin tech PE at BAML helped here as I’ve done a ton of work on equities, fixed income, FX and commodities exchanges.
- Send/receive money between a domestic and foreign bitcoin wallet
Throughout the process we’ve been taking a bunch of notes on UX, exchange rates, hidden fees and any IRS issues.
The final product is a presentation to LPs and maybe some added bonus TBD.
It’s been quite an interesting project- will post again when we’re all done.