Bitcoin and Promises.
Current State of Crypto.
I bought my first Bitcoin in 2012. It was a mining contract at a 25% discount of the current price at the time, which was $30. The Bitcoin mining company was being paid now at a discount for what I would receive in the future. Needless to say, I never got my Bitcoin on that transaction, the mining company never delivered… it would have been my most lucrative investment ever if they had.
Bitcoin itself wasn’t the problem in this transaction - it was that the company I made a deal with didn’t deliver on a promise.
The first time I met Brian Armstrong at Coinbase he said,
“At some point, the world will be on one financial infrastructure.”
And THAT mission is what we in crypto are building towards. We at Boost VC are a decade into that global mission of bringing Peer to Peer Finance to everyone. Boost VC has invested in 170+ Bitcoin related startups, and that’s the direction the world is headed.
Yesterday something happened with FTX, one of the most crucial exchanges. A $32B company evaporated over night. Very few people know what actually happened, and I’m not going to be the one to speculate.
My Dad says “All your debts will come due at the same time.” and I never knew what that meant until now. As far as the market has fallen, it can always fall another 80%, and it will be right when you need to pay the promises you have made.
I feel bad for those impacted, and those who have promises to pay at a time when you really needed the market not to fall, crypto or otherwise.
In 2017 Vitalik Buterin, the creator of Ethereum, once said:
“So total cryptocoin market cap just hit $0.5T today. But have we *earned* it?”
If we are going to build a P2P financial infrastructure for the planet, set backs will come, but we have to earn it back:
2011 Silk Road crash
2013 Mt. Gox crash
2017 ICO Crash
2022 FTX Crash
Each crash has been driven by actors over-promising, and pushed by individuals driven by the desire to make a short term dollar. And every time this has happened, we have new people who truly believe in the long term vision, and those people end up building new great technology that encourages the vision of P2P finance.
Funding will dry up for startups in the next year. Revenue will be lower because of this event. The next few years will be hard for founders in this market. However - if you make it the next two years, you will be one of the largest companies in the world in the next twenty.
You will notice, I generally write the word “Bitcoin” or “Crypto”. It’s a habit. I see no difference between Bitcoin, crypto, web3, blockchain. They are all encouraging the same mission of One Financial Infrastructure.
Let’s Buidl together. Now we get to see whether or not you want to do what you are doing.
Crypto’s not sexy any more. Time for Boost VC to invest.