Research Summary
The report discusses the concept of cryptocurrency as a new planet being settled, with Bitcoiners as the first settlers. It explores the potential of this new world, the challenges it faces, and the role of speculation in its development. The report also highlights the importance of crypto in providing an upgraded financial system and internet platform, especially for those marginalized on Earth. It further delves into the transformative potential of crypto, comparing it to the gold rush of 1849.
Key Takeaways
Crypto as a New Planet
- Conceptualization of Crypto: The report presents cryptocurrency as a new planet being settled, with Bitcoiners as the first settlers. It discusses the potential of this new world and the challenges it faces.
- Role of Speculation: The report highlights the role of speculation in the development of this new world, comparing it to the gold rush of 1849 that transformed San Francisco into a major port.
- Importance of Crypto: The report underscores the importance of crypto in providing an upgraded financial system and internet platform, especially for those marginalized on Earth.
Transformative Potential of Crypto
- Disruptive Innovation: The report suggests that crypto is a disruptive innovation that is rapidly becoming more useful to more people, especially in places where existing systems fail.
- Crypto Financial Services: The report discusses the emergence of crypto financial services that are transparent, programmable, and openly accessible, offering cheaper, more convenient, and more inclusive solutions.
- Resistance to Centralization: The report posits that crypto serves as a bulwark against a world that’s increasingly centralizing, enabling the small and the many to coordinate and counterbalance centralized power.
Challenges and Criticisms
- Speculation and Crypto: The report acknowledges that while speculation is integral to technological revolutions, it can also be unsavory and counterproductive, potentially slowing down the process of building what crypto actually needs.
- Bad Actors: The report notes the presence of bad actors in the crypto world, suggesting that some self-regulation or regulation may be needed.
- Slow Adoption: The report explains that building social consensus around crypto can be challenging, and most people won’t move to the new planet until the infrastructure is mature and it is no longer socially taboo.
Actionable Insights
- Exploring the New Planet: The report encourages individuals to visit the new planet of crypto, looking past the speculative activity to see what substantive builders are building and what real people are using.
- Building for Settlers: The report suggests that a good source of crypto startup ideas is to think about what early settlers on the new planet might need and how the new planet is different, enabling unique products.
- Policy Considerations: The report advises policymakers to take a long-term view, allowing safe harbors and permissionlessness while punishing bad actors when they commit crimes, preserving the openness for good actors to pursue experimentation and innovation.
