Tech companies and crypto networks, contrast.
Tech companies
What we learned about tech companies is that they can scale internationally, therefore network effects can be selected as a higher metric to optimise for than revenue would be.
Many companies have raised money and have been valued based on their pursuit to monopolise an entire global market. The way the company will make money will be decided later.
There are tech companies that make money but don’t make a profit because of scaling, like Amazon, but even so, there are companies that capture users and don’t charge money at all. Whatsapp is a good example. Sold to Facebook for ~$19bn. Obviously, the company who bought them where not buying them based on cashflow, but on the ability to leverage the number of users, and their message data (yes messages! check the terms and conditions), so that they can get to know each user so well so they can place ads in front of you so they can increase their revenues.
Crypto Networks
The difference between tech companies and the state of crypto networks is that crypto network valuations are based on network effects, but it seems there is no intention to ever create revenue, and there is no exit. There is this idea that because networks are decentralised then they have this new magical sort of property where as it grows it will grow in price but also grow in some kind of real value. People struggle to put all the pieces together, and what they are blocking out in the lacuna of their mind is that the great phenomena they are thinking about is something that has already been done, its called a ponzi.
Bitcoin is the exception?
Perhaps Bitcoin is an exception to being a ponzi, because it has a chance at being gold or whatever it is. But everything else is a ponzi scheme, unless it provides a product or service and can make revenue from it. But, you maybe Bitcoin is also a “shitcoin” if we are to be really objective about it.
Someone said,
“Ethereum has value because people are willing to build smart contracts products on top”.
Haha…What, so that more ponzis can build on top of a ponzi? Name me something that is usable from Ethereum, that isn't a made up of a group of degenerate circle jerkers, coming together in one mindvirus worldwide las vegas mentality of adolescence? It’s just trusted casino games. You may not trust online roullette, but you trust a blockchain, so you can get rugged in an honest way.
Crypto has little to no women, the same reason why casinos don’t. Its degenerate, mastabatory and gaming for little boys.
Market Making is fake it till you make it.
Anything that has market making is synthetic. It’s fake.
Market making was used to be a negative word, now it is a normal word.
“DAOs” vs Crypto Networks
DAOs are better than crypto networks because they at least try to do company activities and create some revenue, or at least acquire assets.
Reflecting with empty pockets
Currently i'm writing where crypto prices have been annihilated, and got me thinking what really motivates me? why i am still here in crypto land? and why i am not really feeling unhappy even though a large portion of my crypto holdings have been wiped away?
This is an unintentional vow of poverty. I’m a monk who can see and think clearly. An honourable judge, and distinguished gentleman surrounded by total degens, barring a few.
I didn't come here for the multi level marketing pyramid ponzi state of affairs, i came here to create different (better) realities, ones that has more sanity and clarity baked into it.
We’ve got to create real value, otherwise the winds will sweep all this away…
