Invest Like the Best with Patrick O'Shaughnessy
00:41:18 · Patrick O'Shaughnessy, Micky Malka
[00:41:18] S0: What will this mean for Visa and Mastercard and some of the big important incumbent financial institutions that have also been some of the best stocks to own with some of the best business models? [00:41:30] S2: I think for them it's a problem. And people like Visa led by Ryan understand this, and they're probably doing an amazing job on trying to be present in the crypto rails and make the network connect efficiently and tokenize dollars and be part of this and make sure not to lose that business. Time will tell. But they get it, he gets it. But when you listen to the other extreme, to Jamie Dimon saying, this is all evil. This doesn't work. I do it myself. I have our own JPM coin. I can do it on my own system. Well, they're defending [00:42:05] S0: The castle. [00:42:06] S2: The castle, which they have to do. It's their mandate. He's doing what he needs to do. There's nothing wrong with what he says. But that's the battle between the established nation states or to the new network states.
00:42:06 · Micky Malka, Patrick O'Shaughnessy
[00:42:06] S2: The castle, which they have to do. It's their mandate. He's doing what he needs to do. There's nothing wrong with what he says. But that's the battle between the established nation states or to the new network states. [00:42:18] S0: So if we have this grid that's changing on the bottom layer, above that is identity and the incredible important role of data. And then you've talked about compounders as well as a key area of focus for your investing discipline today. What else in that middle piece is most exciting to you? What does it feel like the world needs in terms of technology or companies or products or infrastructure? You and I have talked about a couple of companies attacking the identity piece specifically. What else has you most excited about? Like people that are serving the world's technical mass and giving it what it wants?
00:42:18 · Patrick O'Shaughnessy, Micky Malka
[00:42:18] S0: So if we have this grid that's changing on the bottom layer, above that is identity and the incredible important role of data. And then you've talked about compounders as well as a key area of focus for your investing discipline today. What else in that middle piece is most exciting to you? What does it feel like the world needs in terms of technology or companies or products or infrastructure? You and I have talked about a couple of companies attacking the identity piece specifically. What else has you most excited about? Like people that are serving the world's technical mass and giving it what it wants? [00:42:52] S2: Oh, there's so much. It's such an exciting time to be doing this. I think there's an intersection between AI and crypto that is really exciting to us, how those worlds collide. AI will need crypto. Crypto definitely needs an eye to really build the future because AI in many ways generates so much more content and so much more tokens that you have to be able to regulate and tokenize and use and apply into smart contracts. And there's no tech better than the crypto rails to do that. That intersection is super powerful to us. We spending a lot of time trying to understand who and how and where. And funny enough, follow the young minds. A lot of the young engineers that started with crypto when they were in college are now moving to AI because it's where the attention goes. But both of them combined have the knowledge now. You're starting to see people that understand both worlds and starting to interact in those.
00:42:52 · Micky Malka, Patrick O'Shaughnessy
[00:42:52] S2: Oh, there's so much. It's such an exciting time to be doing this. I think there's an intersection between AI and crypto that is really exciting to us, how those worlds collide. AI will need crypto. Crypto definitely needs an eye to really build the future because AI in many ways generates so much more content and so much more tokens that you have to be able to regulate and tokenize and use and apply into smart contracts. And there's no tech better than the crypto rails to do that. That intersection is super powerful to us. We spending a lot of time trying to understand who and how and where. And funny enough, follow the young minds. A lot of the young engineers that started with crypto when they were in college are now moving to AI because it's where the attention goes. But both of them combined have the knowledge now. You're starting to see people that understand both worlds and starting to interact in those. [00:43:49] S0: What sort of thing could that unlock?
00:43:49 · Patrick O'Shaughnessy, Micky Malka
[00:43:49] S0: What sort of thing could that unlock? [00:43:51] S2: So imagine, let's say Tesla's robotaxis. The car needs to interact with third parties. The car needs to get paid, collect, define hours of work, all of those things. Now their software can do it, but if they're gonna interact with the third world, there's nothing better than a blockchain smart contract to figure this out. Because at scale, you cannot do it any other way. Can the card directly talk to the Visa rails? Not yet. Is Visa trying to do this? Yes. But what are they using? They're using crypto rails to get it done. That's why they're partnering with Solana and trying to tokenize... Tokens on Solana because it's... Those networks are better than the traditional rails to do this. Those other networks are pool networks. This is push. So all of those aspects will come into this world in ways that we just don't imagine. [00:44:38] S0: And so the way to think about it is we're going to need streaming data and money everywhere to enable these automated services. And it's the people that understand the two fields and the intersection of them that can build things to solve that problem. [00:44:50] S2: You said it better than me.
00:44:50 · Micky Malka, Patrick O'Shaughnessy
[00:44:50] S2: You said it better than me. [00:44:51] S0: It's really exciting to think about. One of the things that is amazing is this little napkin at your office. It says the eye of the tiger on it. You're holding up right now. And it's sort of this cheat sheet for what to look for in people, I think. I'm sure both people on your team, people you back, early stage, late stage, whatever. And I'd love to apply some of the ideas actually to you, you personally, and to people in Ribbit itself to gain a even deeper understanding of you and the business and what drives you. And so the five that I wanna ask about are energy, conviction, heart, dreams, and obsession. You say the energy of a scientist, the conviction of a missionary, the heart of a partner, the dreams of an athlete, and the obsession of an owner. I just love this list. At what point in Ribbit's history did you feel the need to inject that energy the most?