Network effects in Crypto and Crypto economy – how does it work and why it’s at the heart of everything with Jordan Stoev from Paysafe Group

Next on The Recursive podcast we welcome a business development professional who got fascinated with the world of crypto. Jordan Stoev is the Head of Crypto & Trading, Skrill & NETELLER at Paysafe Group, one of the biggest IT employers in Bulgaria. 

In the past five years, he’s been investing, valuating, analyzing, advising, and implementing solutions in crypto. 

With a background in business analysis and finance, Jordan graduated in the US, an experience that helped widen his perspective.

He later came back to Bulgaria and kickstarted his career in the banking industry. His passion for technology led him to the world of crypto. 

In his conversation with Irina, Jordan shares how he tried to mine bitcoins on his personal computer and later teamed up with some friends to buy a mining hardware. 

“Тhat’s how we sort of went down the rabbit hole and started understanding what bitcoin actually is, what is its economic impact, what we can create with it. Then there was no turning back. I’ve been in this for 5 years now, almost daily”, Jordan says. 

In the episode he reflects how bitcoin was created as a response to the 2008 global financial crisis and in an effort to build a more fair and open financial system. 

“Bitcoin is an addition”, Jordan says. “It cannot replace the payment networks that we have today like the digital wallets, the cards that we use everyday. But what Bitcoin does very well is to preserve purchasing power and store value.” 

The ethos of the ownership economy 

Jordan also talks about the idea behind Web 3 and the ownership economy. “You own your own data. You are part of the protocol and the actual tech that you use. The ethos of Web 3. is that it’s open. It’s permissionless. It’s fully transparent and the users can actually participate financially in the data they produce. In a decentralized social network, the more the users contribute to the network, the more they get rewarded and the more the network will grow”, he explains and adds. “We can participate in the growth of the pie. We are not just users of a centralized entity that monetizes our data.”

The role of Paysafe in the financial services of tomorrow 

Reflecting on the role of Paysafe Group as a payment company in high-risk verticals like crypto, Jordan stresses that their competitive advantage lies in compliance and managing risks. 

“There’s a whole new financial system that is being built on crypto rails and a lot of people would like to participate in that, but it’s very difficult. We are trying to bridge the gap between the huge network effects that crypto creates and the normal world that we transact in everyday. And bring some of the benefits of the crypto financial services that are available out there”, he explains. 

As Paysafe Group is one of the biggest employers in the IT services in Bulgaria, Jordan is certain that there’s a lot of talent in the crypto space in the country.

In the episode Jordan also gives some useful tips on how to start in the world of crypto, how to stay at the top of your game in an industry that is changing so quickly and how to crack the culture codes of the crypto communities. 

If you are hungry for more, watch the previous episode for some cool insights into the Greek startup ecosystem with Niki Karali from Mantis Business Innovation.