1/ @elonmusk's realization that he can't cut enough govt spending mirrors the insight that led us to go all-in with crypto at @ElectricCapital in 2018.

The simple framework we used to grow from $0 to $3 billion in assets under management is below.

👇

https://twitter.com/elonmusk/status/1925975507759243741

2/ The macro lens: Western govts carry $36 Trillion in US federal debt and face aging populations (or $175 Trillion if you follow @balajis math -- )

The world has flipped from monetary dominance (rates) to fiscal dominance (deficits).

Demographics + debt > Fed tweaks.balajis.com/p/americas-175…

1/ The 2nd San Francisco gold rush has finally come to an end.

Gone is era of walking into a $200K job at 22 and saving a million by 30.

For decades, a 70th percentile engineer was guaranteed multiple offers as soon as they interviewed in SF.

That era is over.
2/ Software engineers were top of the world from 2000-2020

But the easy path to wealth for the median software engineer is over

There were 100k+ people laid off from big tech in 2024, with more layoffs coming. Remote work has globalized salaries, AI is automating more jobs.

1/ This screenshot is floating around and I know the back story.

How did a Groupon PM go on to build a supersonic airplane company?

Here is the little-known and tremendously inspiring story of how @bscholl started @boomaero (and my very small part in it)

👇 2/ How Blake started Boom is one of the most inspiring founder journeys I know.

It’s proof of what’s possible if you:

a) Think from first principles

b) Find something you believe in so much that you'd be proud to try - even if you might fail (a Blake quote)

🚨1/ President Trump just issued a MAJOR executive order that touches on everything crypto.

This is a BIG deal: stablecoins, Operation Chokepoint, developer protections, a new Crypto Task Force, and a Digital Asset Strategic Reserve

A breakdown of what @realDonaldTrump signed: 2/ Protecting economic liberty

Americans are guaranteed the right to:
Use open blockchains without fear of persecution.

Self-custody digital assets.
Develop and transact freely.

This directly counters tactics like Operation Chokepoint

There were several new sections in the @ElectricCapital Developer Report this year, beyond the high level developer stats

I'm highlighting a few below, segmented by area of interest (NFT, DeFi, Stables, L1s, Geography) for ease of access

👇 Where is on chain innovation happening? Who writes the most new, unique code? From @0xren_cf

https://x.com/0xren_cf/status/1867607959712195014

1/ The US House is voting on FIT 21 today.

Biden just said he wants comprehensive crypto regulations.

Time for another explainer thread.

+ What is FIT21?
+ Why is this bill important?
+ What does FIT21 tell us about shifting political alliances and power in the US?

🧵👇 2/ What is FIT21?

FIT21 is the "Financial Innovation and Technology for the 21st Century Act"

You can read it here:

FIT21 is the 1st bill that tries to comprehensively define how the crypto market should be regulated in the USrules.house.gov/bill/118/hr-47…

1/ The US Senate just voted 60-38 to overturn SAB 121

This is a BIG deal!

It is the 1st crypto bill to get to the President

It also sends a message to @SECGov that they are screwing up

What is SAB 121?
Why is this vote a big deal?
How did the banks help crypto win here?!

👇 2/ SEC Accounting Bulletin 121 was released in 2022.

It required digital asset custodians to treat digital assets as liabilities and hold them at fair value on their balance sheets.

Why is this a problem?

1/ The US has lost its global lead in crypto & blockchain developers.

This is a policy disaster for the US.

Almost every other region understands the potential of these technologies and how to regulate reasonably.

We see this daily. Amazing founders are leaving the US 👇

https://twitter.com/MariaShen/status/1639327629517160448

2/ In the @ElectricCapital portfolio alone, founders of companies/protocols worth $5B+ have left the US and given up permanent residency.

@solana, @NEARFoundation, @cosmos host their developer conferences outside the US

The center of gravity of @Polygon is in Dubai and India

1/ People are surprised to learn @ElectricCapital's team is 68% software engineers and designers

Why does a VC firm need engineers?

Because Crypto will do to TradFi & venture capital firms what the Internet did to retail & media companies.

🧵👇

mirror.xyz/electriccap.et… 2/ When @pmarca wrote "Why Software is Eating the World" he noted every business must become a software business

Software companies deliver better products, have big moats, acquire customers at lower CAC, and have better margins.

To compete, every company must be software-first

1/ @ElectricCapital has raised $1 billion in new capital, our largest fundraise yet.

The web3 economy built on top of the programmable money stack will be one of the defining disruptions of the 2020s.

Where are we going to invest $1 billion?

mirror.xyz/electriccap.et…

🧵👇 2/ We believe five key trends will define the 2020s:

i) DAOs will empower global communities to allocate resources in new ways

ii) NFTs will form a new asset and infrastructure layer for Web3

iii) DeFi will democratize access to financial products

1/ Time for @ElectricCapital's Annual Developer Report:
medium.com/electric-capit…

We analyzed 150m+ repos & xM code commits to produce these 100+ charts.

This was a community effort: 150 people contributed via email and Github! Thank you everyone who helped.

Let's dig in👇 2/ Our methodology:
We focus on open source code, so we undercount total developers in web3.

We focus on unique code and do not count purely copy/paste code.

These are all imperfect measures but directionally useful to understand web3 growth. Feedback is appreciated!

1/ Loot is like @ethereum. It has ignited the imagination of a community by giving us some basic primitives.

It is clunky and limiting, but it is a working MVP.

If the community energy persists, it is a BIG breakthrough. It is the first truly community-owned gaming platform

🧵 2/ Quick @lootproject primer for those new to it.

A Loot bag is an NFT that contains text. The bag is a collection of items each with a known rarity -- think @Wizards_DnD, Magic the Gathering, or Pokemon

It is now up to the community what games to build on top of Loot items.

1/ Some friends and I are trying an experiment:

$400k for 7% on a SAFE, *before* you've picked an idea for a startup

medium.com/south-park-com…

I've done this w/ 3 founders since 2017. 100% of the companies have raised a A and they are worth ~$200M

Details on the $400k👇🧵 2/ @southpkcommons, @rsanghvi, @adityaag, @jubos, @tfmeeks22, and I are coordinating this experiment.

More important than $400k is the South Park Commons community -- 250+ founders, domain experts, authors, researchers, intentionally exploring together: southparkcommons.com/faq

1/ Q: What has 126 slides based on 89M code commits across 270k repositories?

A: The 2020 @electriccapital Crypto Developer Report!

A herculean effort by @MariaShen, data infra built by @jubos and @puntium.

The full report:
medium.com/electric-capit…

Some highlights below👇⚡️ 2/ There are 1500 new developers coming in to crypto every month!

The number of new devs is growing for the first time since 2017.

15.3k new devs through Oct 2020, compared to 12.6k in all of 2017 and 27.5k in 2018.

Dev growth follows price so perhaps we see more devs in 2021

🐂🚀
The # of people asking me for "crypto 101" reading is skyrocketing

🔎 What are the best "intro to crypto" articles for smart laypeople?

+ what is Bitcoin and the case for investing?
+ why crypto unlocks innovation (and disrupts FAANG)?
+ what is DeFi?

Kicking it off👇 2/ One of the best of all time:
"Institutional Investor's Take on Crypto Assets" medium.com/john-pfeffer/a… by @jlppfeffer

1/ Currency wars are going digital.

In this new world:
+ For the USD to remain the global settlement currency, the US govt must embrace crypto
+ For crypto to survive, the crypto community must help the US govt

@ElectricCapital article w/ LOTS of data: medium.com/@ElectricCapit… 2/ A US govt and the crypto community collaboration is not about ideology -- simply game theory and self-interest.

Why? China is swiftly embraciing digital currencies and the degree to which they can influence crypto creates a common adversary for the US govt and crypto.

1/ Today we are unveiling @ElectricCapital Fund II, a $110M crypto-focused fund!

We're fortunate to partner with world-renowned endowments and philanthropies on Fund II.

We invest $250k-$10M in tokens and companies.

Need an idea? Here are 16 we are excited about👇🏽 2/ DeFi
--
+ Decentralized Market Maker: Can we build a decentralized Jump trading?

+ DeFi Insurance: Risk mitigation is key as capital locked in DeFi grows

+ Credit Scoring: Is there a way to do unsecured lending in DeFi?

+ Robo Advisors: Wealthfront for DeFi

1/ I did an interview with @eladgil prior to COVID lockdowns with a number of crypto founders.

Elad is one of the best investors of all time (@stripe, @Square, @coinbase, & @Airbnb and more)

Full interview:

Some highlights 👇 2/ ✅ How Elad Gil makes investment decisions:

1/ People look for a new job completely backwards, e.g. "I want to be a PM at these 3 companies"

How people prioritize:
A/ Role
B/ Company
C/ Manager (sometimes)
D/ Market (almost never a consideration)

How people should prioritize:
A/ Market
B/ Manager
C/ Company
D/ Role 2/ Market -- In 1985 you should have worked in PCs, 1995 Internet, 2000 eComm, 2005 Social, 2010 Share Economy, 2020 Crypto and Remote Work

Just as in investing, the market dominates everything else.

Pick the right market and success will eventually find you.

1/ The demand shock in travel, restaurants, events, retail, etc. is already bad and likely about to get much much worse. [This is not financial advice.]

OpenTable is -36% globally already -- before mandatory quarantines kicked in. These numbers are going to get much worse soon. 2/ Food service, retail, and hospitality employs 26.5M people. That is almost 1 out of every 5 jobs!

What happens to these people when demand drops by 50% for 2 months?

Most of these employers are small businesses, likely with few cash reserves.

Sharing lessons from running a startup through 2008. Hope it's useful to founders.👇

1/ Most important: prioritize your health and family. It's clearly stressful as the world feels like it's falling apart. If you are healthy and have your loved ones, you will be fine long term. 2/ Duration -- this will last a lot longer than you expect. From peak S&P in 2008 to bottom was 500 days. We are only 20 days in to this correction.

Maybe it's different this time...more likely we have a long way to go. And it will feel a lot worse than it does right now.