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1/ Some thoughts on “Markets are eating the world”:
Marc Andreessen argued that “software is eating the world” back in 2011.
Why?
Lower start-up costs + a growing market for online services + deep pools of innovation-seeking equity capital
Marc Andreessen argued that “software is eating the world” back in 2011.
Why?
Lower start-up costs + a growing market for online services + deep pools of innovation-seeking equity capital
2/ “Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.”
He was right.
Software ate much of the world. And it’s still hungry…
He was right.
Software ate much of the world. And it’s still hungry…
3/ The internet was THE general purpose technology of the 2000s.
From logistics (optimization software) to agriculture (satellite analysis), and defense (software-powered drones), Software has transformed industries the world over
How? By providing better information markets.
From logistics (optimization software) to agriculture (satellite analysis), and defense (software-powered drones), Software has transformed industries the world over
How? By providing better information markets.
4/ We could now communicate frictionlessly, rate transactions, rate the raters, and provide information liquidity.
What software really did was create markets where they didn’t exist prior.
Dozens of unicorns have emerged from this trend.
What software really did was create markets where they didn’t exist prior.
Dozens of unicorns have emerged from this trend.
5/ E.g:
· Uber creates a market for riders and drivers to facilitate transportation
· Airbnb creates a market for homeowners and travelers to facilitate the need for shelter when traveling
· Ebay and Craigslist create a market for people to sell consumer goods for US dollars
· Uber creates a market for riders and drivers to facilitate transportation
· Airbnb creates a market for homeowners and travelers to facilitate the need for shelter when traveling
· Ebay and Craigslist create a market for people to sell consumer goods for US dollars
6/ Markets and Software are both eating the world together.
"While markets have eaten part of the world without software in the past (global shipping trade, invention of the corporation), almost all new markets now are software-enabled." - @patrissimo
"While markets have eaten part of the world without software in the past (global shipping trade, invention of the corporation), almost all new markets now are software-enabled." - @patrissimo
7/ Markets Eating The World 1.0: online marketplaces that have transformed travel and transportation and commerce and much more.
There are some existing industries where markets haven’t entered at all:
Healthcare, Education, Construction.
There are some existing industries where markets haven’t entered at all:
Healthcare, Education, Construction.
8/ While every other industry gets cheaper, these industries somehow get more expensive& opaque
We need markets to eat these unproductive industries lest they eat the economy + we will have no option but to have government manage redistribution of wealth
We need markets to eat these unproductive industries lest they eat the economy + we will have no option but to have government manage redistribution of wealth
9/ Markets will soon eat these verticals too.
Education - Lambda School. Masterclass. Airbnb for homeschool. Duolingo for Math/Science. Masterclass.
Healthcare - Nurx. Forward. Pillpack. ISAs for healthcare, etc
Education - Lambda School. Masterclass. Airbnb for homeschool. Duolingo for Math/Science. Masterclass.
Healthcare - Nurx. Forward. Pillpack. ISAs for healthcare, etc
10/ Markets Eat The World 2.0 will be when, instead of revolutionizing existing industries, markets create entirely new ones.
Examples:
Prediction Markets — markets for ideas
ISAs — markets for people
Charter Cities — markets for governance
Examples:
Prediction Markets — markets for ideas
ISAs — markets for people
Charter Cities — markets for governance
11/ Crypto, in theory, should usher in a new era for markets by solving 3 problems with existing markets :
1. they remove rent-seeking middle men from taking profits
2.they allow markets to operate without being monitored or controlled by those same rent-seeking middle men.
1. they remove rent-seeking middle men from taking profits
2.they allow markets to operate without being monitored or controlled by those same rent-seeking middle men.
12/
3. "they allow for totally autonomous systems. a machine can now participate in a market without needing a human to intervene. this is one of the really exciting things i think about crypto and machine learning coming into their own around the same time." - @thedanigrant
3. "they allow for totally autonomous systems. a machine can now participate in a market without needing a human to intervene. this is one of the really exciting things i think about crypto and machine learning coming into their own around the same time." - @thedanigrant
13/ “What we call society is a series of overlapping networks. Some networks are physical—roads + electricity grids. Some are digital--internet. Some are mental—religion, nation-states, money. Blockchains will make it possible to convert networks into markets." -@TaylorPearsonMe
14/ When you get in the AV of the future, you may see a sliding scale offering the ability to calculate the cost of the ride.
That AV will manage its own defi bank account and manage its own schedule and routing to optimize its cash flows without human intervention!
That AV will manage its own defi bank account and manage its own schedule and routing to optimize its cash flows without human intervention!
15/ "when the AV needs to be refueled, it drives to the gas station and buys more fuel - no humans needed. when it needs repairs, it drives to the repair place and uses its own funds to buy repairs. no humans needed!" - @thedanigrant
16/ Crypto networks offer the following benefits:
a) Superior governance (by allowing users to fork off into their own governance structure);
b) Superior liquidity (for otherwise illiquid assets via tokenization);
a) Superior governance (by allowing users to fork off into their own governance structure);
b) Superior liquidity (for otherwise illiquid assets via tokenization);
17/
c) superior transparency - eliminates the need for trust Low barriers to entry for market participants;
d) superior autonomy because it is a payment and comms system that works between machines
c) superior transparency - eliminates the need for trust Low barriers to entry for market participants;
d) superior autonomy because it is a payment and comms system that works between machines
18/ “So, blockchain is fundamentally an agoric technology, not a monetary one. Money is an important marketplace, enabler of marketplaces & blockchain's first killer app. But most future growth will be what I call "markets eating the world", not monetary innovation.”-@patrissimo
19/ Courtesy of conversations with + readings from @patrissimo @TaylorPearsonMe @danigrant, and @J_Hallac
More here:
stephanlivera.com/438
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More here:
stephanlivera.com/438
breaker.audio/venture-storie…
