📊 Briefly on the market situation from the a16z Foundation
5 main talking points:
1️⃣ We are in the middle of a price-innovation cycle.
All markets are cyclical, even the crypto market. Price is the key factor that attracts developers and investors to a project. Next, new ideas and startups are born.
As Benjamin Graham said, "Better to build." Whoever left the market after the dot-com bubble lost the boom in social networks, streaming services, games, etc.
2️⃣ Web3 is times better for creators than Web2
YouTube, AppStore, Meta take 30% commission from earnings of contentmakers. At the same time, OpenSea charges only 2,5%.
Let's calculate earnings per creator:
Web3 at $174,000 per creator, Meta at $0.10 per user, Spotify at $636 per artist, and YouTube at $2.47 per channel.
"You realize there's something deeply wrong with our economy, Big Tech is taking more % than the mob."
3️⃣ Crypto affects the world
More than 1.7 billion people don't have bank accounts. Demand for DeFi and Stablecoin has increased dramatically over the past few years, even with the recent downturn.
Certainly there is a risk in the form of UST/LUNA. But a SCAM of some African bank has the same probability.
4️⃣ Ethereum is the clear leader but faces competition
ETH's leadership is due to its early launch and the trust of more than 4,000 developers. Ethereum sacrifices transaction speed and cost in favor of decentralization [and security].
The scalability problem is solved by layer-2 solutions: optimistic, zk-rollups.
5️⃣ We are at an early stage
As of today, there are 7-50 million Ethereum users. That many users were on the Internet by 1995.
If the trend continues, we will have 1 billion Web3 users by 2031. This is along the lines of the Internet of 2005, when the industry giants YouTube, Facebook began to emerge...
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