A THREAD on insightful thoughts on crypto by @naval:
1/
The three epochs of the Internet:
1. Web
2. Mobile
3. Blockchains
1/
The three epochs of the Internet:
1. Web
2. Mobile
3. Blockchains
2/
Public blockchains will be the title registries for everything of value.
Public blockchains will be the title registries for everything of value.
3/
Blockchains will replace networks with markets.
Blockchains will replace networks with markets.
4/
The inevitable endpoint of crypto is maximum decentralization and maximum privacy.
The inevitable endpoint of crypto is maximum decentralization and maximum privacy.
5/
Crypto is so unique that it’s not possible to reason by analogy to history.
Crypto is so unique that it’s not possible to reason by analogy to history.
6/
The people working on finance, games, art, social networking, and the metaverse, but who still don’t get crypto, are in for a surprise.
The people working on finance, games, art, social networking, and the metaverse, but who still don’t get crypto, are in for a surprise.
7/
One of the best things about the blockchain space is that it is not concentrated in Silicon Valley.
Most of the knowledge that anyone picks up about blockchain is picked up on Twitter, Email, Documents, White Papers, Slack forums.
One of the best things about the blockchain space is that it is not concentrated in Silicon Valley.
Most of the knowledge that anyone picks up about blockchain is picked up on Twitter, Email, Documents, White Papers, Slack forums.
8/
The best investments feel early and weird when you make them.
To spot the “good weird” early, you need the right philosophy!
For crypto, early adopters were those who believed in the sovereign individual over the sovereign state.
The best investments feel early and weird when you make them.
To spot the “good weird” early, you need the right philosophy!
For crypto, early adopters were those who believed in the sovereign individual over the sovereign state.
9/
Buying Bitcoin is more voting than investing.
Buying Bitcoin is more voting than investing.
10/
This is the last time a fiat currency bubble pops, because it’s the first time we have a viable alternative.
This is the last time a fiat currency bubble pops, because it’s the first time we have a viable alternative.
11/
To the generation born after Bitcoin, it’s as old as gold.
To the generation born after Bitcoin, it’s as old as gold.
12/
Countries banning cryptocurrencies are kicking themselves off of the upcoming decentralized Internet.
Countries banning cryptocurrencies are kicking themselves off of the upcoming decentralized Internet.
13/
It’s easier to build a new financial system than it is to reform the existing one.
It’s easier to build a new financial system than it is to reform the existing one.
14/
Future generations will read history books about primitive societies in which the global supply of money was set at bi-weekly committee meetings.
Future generations will read history books about primitive societies in which the global supply of money was set at bi-weekly committee meetings.
15/
Bitcoin is a tool for freeing humanity from oligarchs and tyrants, dressed up as a get-rich-quick scheme.
Bitcoin is a tool for freeing humanity from oligarchs and tyrants, dressed up as a get-rich-quick scheme.
16/
It’s only a matter of time until the narrative-industrial complex comes after crypto.
It’s only a matter of time until the narrative-industrial complex comes after crypto.
17/
If you’re new to cryptocurrencies, Bitcoin is just the entrance to the rabbit hole.
If you’re new to cryptocurrencies, Bitcoin is just the entrance to the rabbit hole.
18/
Anyone who’s interested in the intersection of politics, economics, technology, and finance will just find cryptocurrency and blockchains to be this really interesting rabbit hole.
Anyone who’s interested in the intersection of politics, economics, technology, and finance will just find cryptocurrency and blockchains to be this really interesting rabbit hole.
19/
After just few years, the Crypto Financial System offers fundraising, trading, lending, derivatives, payments, contracts & insurance.
Its solutions are trustless, global, extensible, and 24/7.
This is the power of being able to program money without permission.
After just few years, the Crypto Financial System offers fundraising, trading, lending, derivatives, payments, contracts & insurance.
Its solutions are trustless, global, extensible, and 24/7.
This is the power of being able to program money without permission.
20/
Work on a crypto-system, and your work may last lifetimes.
Work on a walled garden, and your work will land in the dustbin of history.
Work on a crypto-system, and your work may last lifetimes.
Work on a walled garden, and your work will land in the dustbin of history.
21/
Three advantages of decentralized crypto protocols over centralized companies.
• Permanence (censorship resistance)
• Payments
• Permissionless programmability
Look for crypto protocols in finance, social networking, gaming, and more.
Three advantages of decentralized crypto protocols over centralized companies.
• Permanence (censorship resistance)
• Payments
• Permissionless programmability
Look for crypto protocols in finance, social networking, gaming, and more.
22/
Legacy apps: unsecured data, closed source.
Decentralized apps: secured data, open source.
Legacy apps: unsecured data, closed source.
Decentralized apps: secured data, open source.
23/
Crypto is spawning a generation of programmers that understand the fundamentals of game theory, finance, and governance.
Crypto is spawning a generation of programmers that understand the fundamentals of game theory, finance, and governance.
24/
The first generation of the Internet was partially decentralized and built upon stateless open web protocols (HTTP, SMTP...)
The second generation of the Internet will be fully decentralized and built upon stateful open web protocols, aka public blockchains.
The first generation of the Internet was partially decentralized and built upon stateless open web protocols (HTTP, SMTP...)
The second generation of the Internet will be fully decentralized and built upon stateful open web protocols, aka public blockchains.
25/
On the web, every page has a unique address & any other page can link to it.
On public blockchains, every application has a unique address, and any other paying application can incorporate it.
The future is a network of permissionlessly composable & secure applications.
On the web, every page has a unique address & any other page can link to it.
On public blockchains, every application has a unique address, and any other paying application can incorporate it.
The future is a network of permissionlessly composable & secure applications.
26/
Smart contracts are castles made of math, freely trading with each other.
Smart contracts are castles made of math, freely trading with each other.
27/
A firm is just a "nexus of contracts."
Payroll contracts with employees, profit contracts with shareholders, debt contracts with lenders, delivery contracts with customers, tax contracts with the state.
Blockchain-based "smart" contracts will eventually reinvent the firm.
A firm is just a "nexus of contracts."
Payroll contracts with employees, profit contracts with shareholders, debt contracts with lenders, delivery contracts with customers, tax contracts with the state.
Blockchain-based "smart" contracts will eventually reinvent the firm.
28/
Bitcoin is an exit from the Fed.
DeFi is an exit from Wall Street.
Individuals are leaving institutions.
Bitcoin is an exit from the Fed.
DeFi is an exit from Wall Street.
Individuals are leaving institutions.
29/
A Central Bank Digital Currency (CBDC) is the opposite of a cryptocurrency.
It is the complete centralization of money, with no intermediary banks or monetary instruments, under the all-seeing state.
A Central Bank Digital Currency (CBDC) is the opposite of a cryptocurrency.
It is the complete centralization of money, with no intermediary banks or monetary instruments, under the all-seeing state.
30/
The metaverse isn’t a 3D world owned by some corporation.
It’s a permissionless market-network which respects & interconnects all user-owned & cryptographically-secured digital identities, reputations, wallets, communities, spaces, and objects. It’s bootstrapping right now.
The metaverse isn’t a 3D world owned by some corporation.
It’s a permissionless market-network which respects & interconnects all user-owned & cryptographically-secured digital identities, reputations, wallets, communities, spaces, and objects. It’s bootstrapping right now.
31/
The most valuable spaces in the metaverse will hold the top NFTs.
They’re natural Schelling points for communities connecting creative and wealthy people.
The most valuable spaces in the metaverse will hold the top NFTs.
They’re natural Schelling points for communities connecting creative and wealthy people.
32/
In the physical world, every object is scarce.
In the digital world, every object is abundant.
In a digital world made of NFTs, every object is scarce again.
In the physical world, every object is scarce.
In the digital world, every object is abundant.
In a digital world made of NFTs, every object is scarce again.
33/
NFTs tokenize all the things.
We are going from a world where every protocol has a token, to where every (decentralized) application has a token, to where every valuable digital representation of an object or person has a token.
NFTs tokenize all the things.
We are going from a world where every protocol has a token, to where every (decentralized) application has a token, to where every valuable digital representation of an object or person has a token.
34/
The inflation hedges are shifting from gold, art, and farms, to Bitcoin, NFTs, and tech companies.
The inflation hedges are shifting from gold, art, and farms, to Bitcoin, NFTs, and tech companies.
35/
The next stage of the web is the decentralized creator economy.
The next stage of the web is the decentralized creator economy.
36/
Decentralized social networking is waiting for its Satoshi moment.
Decentralized social networking is waiting for its Satoshi moment.
37/
There will be as many viable crypto assets as there are online communities.
There will be as many viable crypto assets as there are online communities.
38/
Every digital object with a credible fan base will be used to store value, not just Bitcoin.
Every digital object with a credible fan base will be used to store value, not just Bitcoin.
39/
If your idea of money is what it was yesterday, you will lose it to the people who know what money will be tomorrow.
If your idea of money is what it was yesterday, you will lose it to the people who know what money will be tomorrow.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
