Panic with Friends – Investing for Profit and Joy
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I’m really excited to have Tushar Jain on the pod. He’s the co-founder and managing partner of Multicoin. We talk about the current crypto market, what it was like in the 2018/19 bear market, and what we can expect with crypto/web3 on a 2 to 5 year time horizon. We discuss The Graph, Helium, and Render. We’re still in the early innings of the crypto markets, which means volatility will remain high. We have been in a blackberry moment and web3’s iPhone moment is coming. This current tech bear market may be the catalyst that gets people focused on the next big thing.
You can listen to the podcast here on Spotify or Apple podcast and now all the episodes are on my YouTube channel as well.
You can also listen right here on the blog:
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Guest: Tushar Jain
Profile: Co-founder Multicoin
Where to Find Him: LinkedIn
What’s Tushar Panicked About?: Authoritarian laws being spread in the guise of public health
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The Takeaway:
The Crypto Winter of 2018/19 was a brutal lesson in chasing the market. Crypto tops and bottoms can’t be done. The market is a complex, emergent phenomenon. There’s a lot of chaos you can’t predict. The trick is asset selection. Make bets on specific projects you’re bullish on for fundamental reasons. This could be indexing or compute (decentralized networks of GPUs for rendering) or storage networks that can’t be censored or telecom projects. Web3 holds the promise of software that is credibly neutral, meaning no one owns it, no one controls it, and you don’t need to trust anyone to trust the software. You end up with software that is censorship resistant, permissionless, and fair to everyone. It won’t be upgraded without your permission, and there’s no toll or excess rents like the web2 business model. Since everything is open source and permissionless, you will need alternative business models. The most important thing will be your private key; it’s kind of like your identity. Your private key will allow you to move your assets around, and that means wallets will be important for UX purposes. The bottom line is we’re still early into web3 right now. What comes next will be profound.Â
Show Notes:
- (00:37) – Intro
- (02:21) – Schmuck insurance
- (05:30) – Accelerating the adoption of sovereign software
- (07:28) – Ethereum – First big aha moment
- (10:02) – Starting an investment firm
- (14:41) – Timing crypto tops and bottoms
- (16:58) – Betting on The Graph
- (24:55) – Defining web3
- (25:28) – Censorship resistant, neutral, permissionless
- (25:44) – No toll, no excess rents
- (27:12) – Your private key is the most important thing
- (29:37) – The Helium business model for deploying networks
- (40:04) – Everyone’s trying to build the smartphone equivalent of web3
- (40:35) – A clear vision for cryptoÂ
- (43:24) – Excited about UXD
- (44:56) – Semiconductors, Mining, and Compute
- (47:00) – Closing thoughts
