A THREAD on most thought provoking insights on crypto by @balajis:


Crypto is just another asset class = the internet is just another TV channel.

It’s more than an asset class because it transforms the custody, trading, issuance, governance, and programmability...
...of anything scarce. It’s a new financial system.

Fiat company

- paper incorporation
- paper contracts
- paper payments
- paper accounting

Crypto company

- on-chain incorporation
- on-chain smart contracts
- on-chain payments
- on-chain accounting

It feels like a generational shift from internet to crypto, just like the desktop to internet shift happened ~20 years ago.

A fundamental backend and cultural change to how software is developed, funded, monetized, and used.

On disk, online, on-chain.

It’ll take a while, but the entire tech industry will ultimately be rebuilt on public blockchains.

Incorporation, funding, payments, employee equity, user incentives, encrypted messaging, identity, accounting, M&A, governance, all can be automated with crypto.

Just like the internet turned every form of information (news, books, music, movies) into packets online, the blockchain turns every form of scarcity (gold, stocks, bonds, loans) into transactions on-chain.

That is, genuinely, an innovation on par with the internet itself.

We can't just shoehorn new technology into century-old policy frameworks.

We need to think from first principles, or else every livestreamer in the world would have needed a television broadcast license.

Once payments go on-chain, all higher order data structures derived from payments go on-chain.

Contracts of course, but also financial statements, companies themselves, conglomerates, and M&A.

It's not just about digital currency, but digital corporations.

Farming was the 1800s.

Manufacturing was the 1900s.

Counterintuitively, could investing become the most common "job" of the 2000s?

Reason: crypto and fintech are turning everyone into an investor, just like the internet turned everyone into publishers...
...It doesn't mean they'll all be *good* investors.

But it does mean everyone will be in the game, in some way.

Silicon Valley is the new Redmond, and Crypto is the new Silicon Valley.

If a company is still doing pure-cloud-no-crypto by 2025, that will be like doing desktop-only software late into the 2000s.

An Indian can use defi protocols without a Bloomberg Terminal.

A Nigerian can create defi contracts without paying for American lawyers & a Filipino can computationally verify that defi code is fair without trusting American politicians.

Many government services can be put on-chain eventually, things like property registries and birth/death/marriage certificates.

Citycoins (and their associated DAOs) may eventually become the way jurisdictions of the future allocate funds and manage governance.

If web1 led to new technologies (Linux, open source), and web2 led to new markets (Airbnb, Uber), web3 leads to new polities (crypto tribes, DAOs).

The primary risk in web3 is political risk.

As such, you need to remain abreast of politics, economics, and foreign affairs.

Crypto regulation is not consumer protection.

It is bank protection, it is incumbent protection.

The core competency of banks is regulatory compliance, not technological innovation.

They have a license to print money.

Opening them up to crypto is like subjecting the USSR’s state owned enterprises to the free market.

Most won’t make it long term.

IMF pretends to make countries independent.

BTC actually makes countries independent.

I'm in favor of crypto-civilization, not crypto-anarchy.

Crypto as a tool to reform the system, not to raze all systems.

Decentralization restores the consent of the governed.

If you care about free speech and privacy, if you care about free trade and rule-of-law, if you care about provable fairness and economic stability, then you should care about cryptocurrency.

Exit enables alternatives. Alternatives enable reform. Satoshi didn't run the ball up the middle. He didn't join the state to fix it, nor did he hold up an ineffectual placard. He built a better alternative that anyone could choose. And millions who chose it enabled reform.

Blockchains are hubs for digital communities that give contract enforcement, digital rule-of-law, identity, encrypted messaging, property rights, birth/marriage certificates, historical archives, a constitution, etc.

Apart from the new digital gold standard, the SWIFT replacement with 17 second clearing times, the 10X improvement in crowdfunding, and the creation of the first internet-wide system for property rights and contract law — what has the blockchain ever done for us?

Technology is already international, decentralized, capitalist.

Crypto just turns these pre-existing values into code.

It might take 10-20 years, but as blockchains scale every centralized service can become a monetizable decentralized protocol.

A decade of disruption followed by a decade of decentralization.

Crypto, while still in its infancy, is the basis for digital laws for virtual realities.

Every single moment we spend looking at a screen will be partially or wholly governed by a network of blockchain-like systems on the backend.

Crypto is internet-native, transnational, voluntary law.

It’s money, but it’s also decentralized financial services (defi), identity (ENS), property rights (private keys), art (NFTs), writing and hosting (decentralized media), and more.

The arc of technology is long, but it bends towards decentralization.

Decentralization: P2P, internet, domain names, startups

Counter-Decentralization: MVC, tech giants, usernames, state regulation & censorship, getting cancelled

Redecentralization: CBC, blockchain, crypto domains, remote work & digital nomadism, going pseudonymous

The ongoing Counter-Decentralization will be harsh — but because it won't fully snuff out liberty worldwide, its net effect will be to increase the global demand for Decentralization.

In the pseudonymous economy, you can reboot under a new name if your status is unfairly set to zero by discrimination or cancellation.

This seems like part of the long-term solution to the single global panopticon that is today's social media.

Decentralized media provides the all-important new feature of digital property rights.

And has the additional features of token upside, censorship-resistance, pseudonymity, etc.

After fintech and VC, social media is the next major area for crypto to disrupt.

Internetification is like electrification.

We're still digesting it.

The digital native era is just beginning.

Crypto is the financial internet.

It’s not a small thing.

Right now we don't really think of digital realities as competitive with the physical world.

But add up all the time you spend online.

Now imagine virtual realities with social networks, smart contracts, embedded commerce — & telepresent actuators for the physical world.

Once payments go on-chain & become cryptographically verifiable, all higher-order things derived from payments do too.

For ex: you get trustworthy financial statements for small companies in distant countries. That allows global investors to put money into poorer places.

A non-obvious aspect of crypto is that it enables automated accounting, & therefore much more complex models for economic alignment. It's the better information from public on-chain data that permits economic alignment. Symmetric information, as opposed to asymmetric info.

Stripe is the fiat Ethereum.

That is a compliment to both Ethereum and Stripe.

And USDC starts bridging the two.

Every function of Stripe is in theory doable with a USDC backend on Ethereum (or another chain).

Block explorers are dark horse disruptors of search engines, just like decentralized media is gradually disrupting social networks.

To see what I mean by "blockchains are hardened by constant economic attack", go to rekt.news.

So many post-mortems!

Crypto devs operate in a live fire environment.

No security = project dies.

Those that survive are hardened infosec vets.

Buy five minutes of advertising time as an NFT.

Use it now, or hold it for later if you think the show will get more popular.

One of the many great things about crypto is that anyone can now do empirical, large scale, opt-in experiments in macroeconomics.

Bitcoin proved that a deflationary reserve currency is viable.

Many other experiments are being run today, & everyone involved has opted in...
...It used to be that testing out macroeconomic theories required winning a war, a revolution, or an election.

Now a college dropout can start a new economy from a laptop for free, if they can find users.

The reduction in upfront cost is so immense that it’s a true 0-to-1 leap.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Rohit Jindal 📚

Rohit Jindal 📚 Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @rohit_jindal29

28 Sep
A THREAD on insightful thoughts on crypto by @naval:


The three epochs of the Internet:

1. Web

2. Mobile

3. Blockchains

Public blockchains will be the title registries for everything of value.

Blockchains will replace networks with markets.
Read 39 tweets
27 Sep
A THREAD on insightful ideas on crypto shared by @rleshner:


@compoundfinance has already surpassed the entire existing banking system in terms of transparency, fairness, accessibility, user empowerment (and ownership), and most importantly, interest rates.

"Fintech is focused on disrupting the front end of the financial system--DeFi is focused on disrupting the back end of the financial system" @alpackaP

My favorite part about crypto is that anyone, anywhere can become a part of it, no questions asked.
Read 22 tweets
24 Sep
A THREAD on insightful thoughts on crypto by @santiagoroel:


I don’t think the world has realized the power of capital moving at the speed of information. #DeFi

DeFi is democratizing finance.

DeFi is the global payment & financial rails of the future.

Most don’t know it yet.

Crypto is still not obvious to most. Neither was the Internet as late as 2001. Yet here we are - most can’t live without the Internet.

Make no mistake, crypto will be as transformational. We’re headed to a world where you’re in control of your capital, data & digital assets.
Read 37 tweets
25 Jun
A THREAD on key ideas from "Range: Why Generalists Triumph in a Specialized World" by David Epstein:


You have people walking around with all the knowledge of humanity on their phone, but they have no idea how to integrate it.

We don’t train people in thinking or reasoning.

A rapidly changing, wicked world demands conceptual reasoning skills that can connect new ideas and work across contexts.

The more constrained and repetitive a challenge, the more likely it will be automated, while great rewards will accrue to those who can take conceptual knowledge from one problem or domain and apply it in an entirely new one.
Read 18 tweets
23 Jun
A THREAD on key ideas from the book "Think Again: The Power of Knowing What You Don't Know" by Adam Grant:


We listen to views that make us feel good, instead of ideas that make us think hard.

The less intelligent we are in a particular domain, the more we seem to overestimate our actual intelligence in that domain.

How do you know? It’s a question we need to ask more often, both of ourselves and of others.
Read 16 tweets
1 Jun
A THREAD on insightful ideas by Brian Greene:


Cosmology is among the oldest subjects to captivate our species.

And it’s no wonder.

We’re storytellers, and what could be more grand than the story of creation?

When kids look up to great scientists the way they do to great musicians and actors, civilization will jump to the next level.

Physicists have come to realize that mathematics, when used with sufficient care, is a proven pathway to truth.
Read 16 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!