3/ But now we have 100s of VCs run by non-entrepreneurs.
These are the MBAs who create funds bc it’s the cool thing to do.
They only make safe bets and can’t empathize w/ the entrepreneur bc they haven’t done it themselves.
They don’t add much value outside their capital.
4/ In crypto, founders are liquid from day one and have most of their money in BTC/ETH.
This means founders can start investing personal capital into the new wave of companies much earlier in the founders’ career.
5/ This has a huge impact on the new wave of startups.
Instead of raising from a bunch of VCs who will negotiate terms until you’re sick and won’t add much value, now you can strictly raise from entrepreneurs who feel your pain… who know the grind of building.
6/ Some of the best crypto investors today are also builders.
They build alongside the companies they invest in.
The simplest explanation of inflation I've ever read comes from a story about cigarettes and prisoners.
It's written by @yanisvaroufakis and it perfectly describes why inflation hurts savers.
Here's a story about a prisoner-of-war camp...
1/ Periodically, the Red Cross would place a few more cigarettes in the prisoners’ packages but keep the quantity of chocolate, tea, and coffee the same.
When extra cigarettes arrived, each cigarette now bought less coffee, less chocolate, and less tea.
Why?
2/ Since a larger number of cigs now corresponded to the same amount of coffee/tea, each individual cigarette corresponded to less coffee/less tea.
The opposite also held true:
The fewer cigs the Red Cross placed, the greater the exchange value (purchasing power) of each cig.