Voyeur (n): a person who enjoys seeing the pain or distress of others. I watched Thursday night football not because I am a fan of either team. I am a Bears fan. I watched to see the Packers suffer & lose. I was a voyeur. I came away quite happy.

I see a lot of voyeurs on LinkedIn & Twitter when it comes to crypto. I'd guess few have any direct interest. They aren'tt short any of the coins blowing up. They are enjoying the pain of others. They are not direct fans. They are voyeurs.

I get it. Terra/Luna, Celsius, 3AC & FTX show that there were flaws/fraud in the system. This validates some bearish arguments. This has set back the industry by yrs. It has cost institutional investors billions of dollars that may never come back into the space. It doesn't mean it all goes away.

Today I show Bitcoin & Ether. Combined they are 53.7% of the $873bb mkt cap of crypto. There are 000s of other coins that make up the balance. Most people think only of crypto as the coins & not the technology disruption behind the coins. The coins are just the funding vehicle for the project, like SAFE notes in angel/seed/VC. Many of the VC deals fail, like 90%. Many coins will fail. That does not mean the technology disruption won't occur.

Bitcoin isnt going away. It may not go to 1mm either. US investors don't understand the use case of Bitcoin. They don't need to as the $ is quite strong & accepted everywhere. However, Bitcoin makes a lot of sense for people subject to fiat ccy that has or will massively devalue. This is no small part of the world. US consumers also do not have a large amount of remittances abroad. Other countries rely on this. Philippines has 10% of its GDP in remittances. Saving fees on this amount of money makes a massive difference. Bitcoin may not be for US investors, but it isn't going away.

Ether is also not going away. The Ethereum network is home to DeFi & smart contracts. I did an entire podcast series on DeFi (link in comments) showing the use case for DeFi. FTX is NOT DeFi. FTX is CeFi. It was an unregulated copy of the TradFi world with exchanges, traders & brokers. It was inferior to the traditional world. DeFi is rebuilding that infrastructure. The industries most likely to be disrupted are those where the customer experience is a pain point. Has anyone had any pain points with their bank or broker? Do people love their fincl services?

NFTs are also not going away. I am not speaking of Bored Apes. I am speaking of the ability of content creators like artists, musicians & writers to connect directly with their fans. I am talking about fans being able to get more value via unique experiences or equity ownership in projects. The content industry needs to be disrupted & it is.

Broadly speaking, web3 is not going away. It is the next iteration of the internet & it needs to be disrupted.

Be careful seeking advice from voyeurs. They don't have skin in the game.

Stay Vigilant

#markets #investing #cryptocurrencies