- Databases vs Blockchains – this post explains the fundamental differences between databases and blockchains.
- A 5 minute video on how blockchain technology works – if you are still curious after this video, watch this 22 minute version that goes into more detail.
- This is another great video that helps visualize how blockchain works.
Cryptoasset prices and valuations
- What drives the value of crypto-assets – This post explains how crypto-assets are a new form of money and goes into detail about the strengths and weaknesses of crypto-assets vs. fiat currency (dollars, euros, etc) vs. commodities (gold, wampum, etc.). There is also a great explanation about the network effect that is driving the massive increase in value for this asset class.
- Crypto bubble – This article explains why our traditional mental models of valuation do not make sense for this asset class. Our past experience has shown us that companies can only grow so fast and when people see the incredible returns on crypto-assets they think it must be a bubble. But crypto-assets do NOT equal equity and blockchain networks are NOT companies. This post explains why the value of crypto-assets can grow faster than any company ever could. The most important takeaway from this post is that unlike buying stock in a company, when you invest in a crypto-asset you are actually increasing the value of the underlying asset. When you buy stock in a company, you are not actually making the company more valuable via your investment. However, when you invest in crypto-assets you increase the legitimacy of that asset and therefore increase the value of that asset – which then causes more people to invest and the cycle continues.
- How an alt-coin could displace Bitcoin – Some investors have asked us if they would be better off just investing in Bitcoin rather than a diversified portfolio of crypto-assets. This post explains the weaknesses of Bitcoin relative to newer blockchains and why it is worth it to diversify your investments.
Ways cryptoassets capture value and align market participants
- The effects of crypto-assets on our economy – A partner at Andreessen Horowitz writes about what cryptoassets are, why they will profoundly impact our economy, and why cryptoassets are the future of fundraising.
- Fat protocols – This post explains how in the current internet, value is captured at the application layer (Facebook, Google, Uber, etc.) rather than at the protocol layer (TCP/IP, HTTP(S), SMTP) even though both of the layers are necessary for the end product. With blockchain technology, much more value gets captured at the protocol layer than in the past – this post explains why.
- How tokens rethink age-old problems like financing and participant value alignment – a quick history of how the tech industry has involved through the lens of networks and value creation, and a discussion of how that will be different in a world of blockchains