Crypto Investing is Tech Investing
Crypto investing is tech investing and this evolution is happening now.
Crypto allows innovations to develop and launch without the need for centralized organizations or processes.
When we think about tech investing, we think mostly about public companies like Apple, Microsoft, Google, and Meta.
But with crypto, tech investing means we’re buying tokens, not stocks.
Thinking about crypto investing as tech investing takes some fleshing out. So let’s dive in.
Crypto is Bigger than Bitcoin
In the early days, Bitcoin investing seemed like speculation to those on the outside looking in, but there was a lot more going on.
Bitcoin was created to remove third party intermediaries traditionally required to transfer funds.
It was perceived as digital gold – more scalable, efficient and transferable. A better store of value.
Bitcoin served as a leaping off point, a beginning where other technologies could be built that take blockchain and add layers of functionality.
Today, crypto is much bigger than a store of value and we’re getting advances at an accelerating rate.
New functionalities that are recognizable to a broadening group of adopters include; CBDCs, DAOs, DeFi, and NFTs. And there will be more in 2022 and beyond.
Crypto is Just Tech
Crypto investing is tech investing because crypto is just tech.
Bitcoin ignited today’s crypto innovation. It has the potential to be a superior global monetary network.
On the shoulders of this giant, new technologies are getting built which add more efficient infrastructure and processes for everything from ownership, contracts, payments, currency, organizational structure, community and cultural development, secure information sharing, and more.
Even Bitcoin is evolving. The Lightning Network, a layer-2 protocol built on Bitcoin, provides fast and cheap money transfers world-wide.
Digital wallets, CashApp and Strike, on-board new users to Bitcoin daily. CashApp recently integrated The Lightning Network on its platform and Strike launched in Argentina providing access to the network there.
Institutions are Greasing the Wheels
Institutions are beginning to understand that crypto investing is tech investing and are allocating capital accordingly.
Institutional investment is critical to the larger adoption cycle and it does two things:
- It adds the perception of credibility to the new technology.
- Capital ushers in new entrants. This incentivizes talented technologists and entrepreneurs to develop in this space.
Capital propels the technology forward and institutions stepping up greases the wheels.
Osprey CEO Greg King on Yahoo Finance
Osprey Founder and CEO, Greg King, discussed many of these themes on Yahoo Finance last week.
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