David Rosenthal: belief

Transcript context

…Why would you use this thing as a currency right now when it's appreciating so much? You understand the hodler mindset, which we haven't talked about yet and I think we'll get into in analysis. You can't really spend your Bitcoin at any retailers. Of course, you can't because who is going to spend these things right now? What is the price? It's the intersection of supply and demand. You've got these huge new chunks of demand, blocks of demand sizes that have never been seen before in the asset class, $100 million, $200 million at a time that wants to come in and buy. You've got not a lot of supply willing to sell, of course, the price is going to go through the roof. That's what happens. David, as we catch up today, I want to point out there's one institutional firm, Paradigm, that is cofounded by (I think) Fred Ehrsam and Matt Huang. Matt, of course, is a former Sequoia partner. Fred of Coinbase cofounder, definitely the President. Yeah, he was Brian’s cofounder. The two of them co-founded it. Matt has made this really great point. If I could tell you to do things to follow up, one is obviously the Bitcoin white paper remarkably cogent. The other is actually reading Matt's piece about his summary of Bitcoin. It's at paradigm.xyz and sort of why we're doing what we're doing. Why do we think it's interesting? What the trade-offs are. Where it could go wrong. Where it could go right—really a cogent analysis. One of the things he points out is of course Bitcoin has these bubbles, but as David mentioned, every time they pop, it plateaus at a higher level than the previous bubble. Because Bitcoin requires this network effect to be valuable—it is a self-fulfilling prophecy in a lot of ways—it actually uses bubbles as a go-to-market strategy. Where every time there's a run-up, there's more and more legitimate players and more and more institutional capital that piles in, more infrastructures get built up. When the bubble pops and you have a lot of the late-coming speculators that of course lose money, what is left there is all that infrastructure and all that advancement that was made from the mania and the hype. It's just really interesting to see that it really is a go-to-market strategy.…

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