The Visionary
The future, and what is barely possible, reads round the next corner.
Campbell Harvey embodies The Visionary through conviction that DeFi represents civilizational rupture in finance, not iteration. The Duke Fuqua professor and DeFi author dismisses conventional fintech as lipstick on a pig, a phrase that signals a mind oriented entirely toward transformative futures rather than incremental gains.
“And this is in 2014. So it was below the radar screen, definitely, but I'd heard about it. And I just, well, if I'm doing the euro, the pound, the dollar, the yen, why not add a cryptocurrency? So that's where I actually started and I began to research this idea.”
“You would have shorting going on and to bring the stock back down to its fundamental level. But some of these hedge funds, the risk of shorting has gone up dramatically. They've seen what's happened. So when people step out of the shorting, that means that you've got this asymmetry and it's just more likely that you've got misvaluation.”
“And it's like seeing a cockroach in your house. You know when you see one that there's a dozen behind the wall. And that sort of small indication is that this product in the back test has been overfit when it goes to live trading, you're going to be disappointed So, what do you actually want is in the back test not to choose the best one?…”
“I guess what I didn't fully appreciate, and it's kind of embarrassing because when you do economics at the University of Chicago, it's all about economic incentives and how that shapes behavior. And we've talked about this a little bit, that I've really realized that the research in my field is shaped by economic incentives.”
Masters in Business: “Campbell Harvey on the Future of Finance (Podcast)”
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