Mind your step.

Sunday, 28 April, Year 5 d.Tr. | Author: Mircea Popescu

Consider first the woes of democracy and open markets :

The problem at hand is huge:

  • VCs continue to engage in cronyism and fund their friends’ startups with crappy, undeveloped business models
  • Those crappy startups are cluttering the ecosystem
  • Those crappy start-ups are causing VCs to shy away from consumer investments to the detriment of other better consumer start-ups that need funding
  • and, of course, The Series A Crunch: the crappy start-ups that got funding at high valuations are struggling and are unable to get Series B funding, dropping like flies, creating a tech bubble.

The worst part of this problem is again that many non-crony, first-time entrepreneurs, regardless of how compelling their business model is, how great their margins are and how great their team is, still get a hard time and struggle to get funding. VCs would rather fund Home Mint with Justin Timberlake even though Justin Timberlake is a ridiculous brand ambassador choice for an e-commerce home goods company.

via Sindhya Valloppillil.

Now let's contrast and compare to bring those benefits in the title clearly within focus. Everyone knows by now about the herpderp brigade getting really excited about Bitcoin going over 9000 and the painful asskicking they received. Bitcoin price bubble ? Not so much. Not anymore, anyway, not for now anyway.

Few people know the exact same was happening in the Bitcoin equity market, a couple of months prior. Coin-whatever was "bringing Wall Street to bitcoin", Coin-whatever (different one) was going to whatever in the US, Coin-whatever (yet another one) received 500k in funding and was therefore taking over the world. On and on and on.

Then the kaibosh, and then silence. Bitcoin equity bubble ? Not so much. Not anymore, anyway, not for now anyway.

People being people are still trying, of course. To this day people are trying to pump the price and turn Bitcoin into the get-rich-quick Internet crapola they like because they can readily understand. To this day people are trying to pump imaginary equity, as if some T-shirt printer or investor-owned-but-operator-controlledi mining farm are in any way equitable, assets or investments. Anywhere else all this nonsense would have succeeded. In Bitcoin it does not stand a prayer of a chance. (This, obviously, is one of the top reasons I like Bitcoin).

That's the whole story : investors following Max Keiser will realise a loss. Investors following Trilema will make gains. VCs dealing with freakshow "start-ups" will never see a liquidity event. VCs dealing with MPEx approved start-ups will make a killing. Noobs with entrepreneurial delusions will continue to feed the market for Internet comedy. Competent entrepreneurs willing to put the work in, come up with actual business plans and then actually execute those plans will be getting rich. They are getting rich already.

This trend will continue. This is all.

  1. After the PMB got killed last year the entire horde has moved to this model, which is not significantly different but I guess enough so to be sold as different. []
Category: Bitcoin
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5 Responses

  1. [...] you'd want to be using as a proxy for your own experience anyway. The people who could be adequate proxies for your own experience are generally busy with other things. To approach this Bitcoin thing with any level of seriousness [...]

  2. [...] sparse (500k does NOT constitute an investment round) and poorly directed (more on this topic from Sindhya Valloppillil, if you really need more on this [...]

  3. [...] lightly and mind your step. There are far too many clueless people involved in Bitcoin, and of the rest far too many don't [...]

  4. [...] So : welcome new people! Have fun. Mind your step. [...]

  5. [...] Bitcoin's resistance to people's pressure towards making it more of what they are familiar with, contrasted with the troubles the same sort of pressure cause in fiat systems and illustrated with [...]

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