Cryptocurrency allows for average investors to have the same opportunity as VC firms, Wall Street and ‘Sophisticated’ Investors. I would argue this is one of the main reasons that most of Wall Street and Silicon Valley figures have dismissed cryptocurrency – they aren’t in control anymore and the very people they profit off (retail investors) are now in the driving seat with respect to being first in the new game.
The saying ‘Rich get richer’ always gets thrown around a lot, this is particularly true with investing. ‘Sophisticated Investors’ are offered investment opportunities that retail investors could only dream of. I always knew about this in the stock market when companies would issue stock placements via brokers to sophisticated investors, however since I arrived in China I have also seen such opportunities with regards to major projects and advanced technology also seeking capital. Most of these projects are no-brainers as they have government support but investment in the projects is only reserved for a privileged few, in some respects I understand not all investments are suitable for the retail channel and there are more regulatory headaches. Cryptocurrency has given me an opportunity to invest in promising projects that I haven’t had before.
Silicon Valley likes to pretend it is about creating technology and enterprise while being very progressive. In theory Silicon Valley should be all for cryptocurrency given its’ ability to liberate people. The issue Silicon Valley has with cryptocurrency is for the most part is about seeking decentralization, i.e not having a company wield all the power over customers/users. All the largest companies in Silicon Valley thrive off having massive amounts of user data that they then use to create products or services to generate substantial profit. The users/buyers of their products and services do not gain any financial benefit by consuming said products or services, have very little power and are taken for granted. Cryptocurrency offers users the chance to be part of the team rather than just a user, giving them financial benefit and a sense of belonging rather than just a customer.
Silicon Valley is also a hotbed for talent, now instead of working in a Silicon Valley startup, the open source decentralized nature of cryptocurrency allows world class engineers, coders etc to work on the same project from anywhere in the world. Companies in Silicon Valley have relied on their engineers and coders to build their companies, the reality is that a large majority of staff did not see requite financial benefits of the startup’s success. Sure there were some that received stock/stock options but that is reserved for the few that were there from the beginning. Cryptocurrency allows engineers and coders to be rewarded by the network for their work, which in-effect is a way for them to be fully incentivized in the success of the network, rather than receiving a paycheck every fortnight and seeing their work go on to be pivotal in the success of billion dollar organizations.
Wall Street since the beginning of time has been reaping the benefits of a market in which they always win. The time they lost, they got bailed out. Stock recommendations, Insider trading, market manipulation, high frequency trading. You name it, Wall Street has used it to profit from retail investors. When you invest in a stock, it is not up to the company if it succeeds, it is up to the market and the market = Wall Street. Make no mistake Wall Street will enter into cryptocurrency in a big way, where there is money to be made, wall street is found and I’m not so sure it’s the best thing, of course it brings with it billions upon billions of dollars but also the same kinds of risks we have seen with the stock market. Wall Street has been negative on cryptocurrency given it detracts money in their playing field, the playing field which they have home advantage. In the cryptocurrency market Wall Street has to start from scratch just like the rest of us in a more level playing field, which of course Wall Street detests. The issuing of futures contracts was the first sign of real Wall Street interest. Couple that with Ex-Fortress CEO Mike Novogratz starting a cryptocurrency bank and Goldman-backed circle buying Poloniex the Wall street Bulls are at the gate.
Next time you see a negative article coming from a Silicon Valley or Wall Street commentator, just remember why they don't like cryptocurrency.
Image Source 1: Techcrunch.com
Image Source 2: Google.com
Image Source 3: Cnbc.com
Now I understand better, been wondering why the soo much dislike is from them
Yep!
I like your perspective on the issue. It is difficult to Silicon Valley to adopt a technology that would also be a risk for them. What if we had a search provider, like Google but based on cryptocurrency...
Yep, that would be ideal.