The Critical Path of Funding Future Technology
Here in the United States, we often talk about our right to free speech. Originally intended as a way to limit the powerful from stifling the conversations of everyone else in their favor, we might now regret the fact that anyone can say pretty much anything. After all, some things might be better left unsaid, and other things are simply untrue and yet they can be broadcast through a megaphone as large as you can afford. Either way, the cat is out of the bag.
It might sound odd to talk about something so fundamental as free speech as a kind of innovation or even technology, but essentially that’s what it was - a breakthrough in societal technology. Of course, some types of innovation are pretty cut and dry. For example, most of us can see that manually driving an automobile powered by fossil fuels will soon become outmoded now that electric cars exist that are capable of driving themselves. The details around which brands and the exact date of mass adoption could vary one way or another. But in general, we can all see where this is going.
Other types of innovations are harder to reason about and have a lot more edge cases and complexity. And indeed, ideas have a way of changing the world in unimaginable ways. For example, the free speech topic we discussed a moment ago. It’s one thing when you live by yourself on a farm or in a cave, or even a small hamlet. It’s another thing when a radio broadcast can transmit one person’s speech for hundreds of miles nearly instantly. And another still in the age of the internet, in which all of us are in contact with each other using devices in our pockets that are always on. The reality is that today, the genie is out of the bottle and good luck putting it back in.
Now what about the ability to transact freely? After all, transactions are a form of communication. The difference is that we’re communicating value along with our ideas, needs and desires. For example, I value an apple but how much do I value it? Well that’s the price you're willing to pay. Two-hundred years ago, this might have amounted to the ability to purchase what you want or need from a shop in town. But as time went on, bartering and trading got more complex with global supply chains and digital transmission networks where oftentimes the only good being exchanged is information itself and the payment method might also only be a stream of 1’s and 0’s.
This is where we get to the world we live in now. It might not seem like we’ve crossed into the blue yonder with digital assets just yet - but some things have fundamentally changed. For example, not only is it now possible to own something scarce and digital; but anyone can try their hand at creating a value transmission network or building a piece of infrastructure that connects different parts of these vast and disparate systems.
Why is this such a big deal? Or is it?
I believe that in much the same way that we underestimated the importance of the internet at its onset, we are still at the knee of the curve in understanding just how much the world is changing, and that the pace of this change is still accelerating.
While speculation on future prices of digital assets may be the dominant topic of conversation in some circles - we would do well to set that aside even for a moment and think about what’s underneath. I’m speaking here of human nature, behavior, and the powerful trends of increasing digitization and hyperconnection. It’s for these reasons that I continue to be compelled by the transformative power of digital assets and to believe that the role of the investor is second to none.
Ask yourself these questions and ponder your responses.
In the future, do you think there will be more computers or less?
In the future, do you think the world will be more complex or less?
In the future, do you expect people to become more trustworthy?
In the future, do you expect tyranny to exist?
In the future, will the most powerful have the best interests of everyone else in mind?
In the future, will there be more innovation or less?
It’s these very questions that drive home the need for permissionless networks, not beholden to any geographic area, government, or political agenda. Distributed Ledgers combined with public key cryptography provide one possible path forward. There are implications here for Venture Capitalists as well as innovators and investors who are looking for a seat on the bus; wherever the winding path it might follow.
Cheers,