Thread by @dunkhippo33

I always learn so much from my chats w @danqing_liu.

This wk we chatted about how he believes crypto enables ppl to layer new economies on top of things.

I think that theory is spot on and some thoughts >>

1) Economies are pretty limited today. The most obvious layer is commerce.

I buy something. You give me that thing in exchange.

2) This works well if you’re in the business of “selling things”.

But there are many jobs that are not related to directly selling things.

3) For example, if you’re a scientist and you come up w e=mc^2, that’s not something you can sell.

It may be useful. It may lead to other things (tenuous maybe) you can indirectly sell. But the formula itself is not directly sellable.

4) But crypto allows you to layer on essentially a derivative economy onto anything. On top of concepts, experiences, and goods that aren’t for sale.

You can create a limited number of nfts for the creation of a discovery that a passionate fan may want to buy.

5) That’s a new product that wasn’t in the market before.

And because it’s digital, it doesn’t have the friction of custody or COGs / shipments / customs / supply chain etc.

6) And IRL, we already know that “derivative products” are popular and sell well.

Commemorative coins. Merch from a concert. Baseball cards. In fact, many of these items can be highly prized.

7) Bringing this layer of derivatives commerce into the digital world - which has way less friction and is not geo dependent - opens up a new economy.

This enables ppl who are not in the business of directly selling stuff to monetize better.

8) For more cool thoughts on crypto, I highly recommend you follow @danqing_liu!