Crypto Success: We All Must Become Venture Capitalists

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The market cap of cryptocurrency is rising. According to Coingecko, the total market cap of the tokens it tracks is now over $1.9 trillion. Of course, Bitcoin still makes up the majority of that value, coming in at over 57% of the total.

Many are starting to realize that Bitcoin was hijacked. With each new story of Wall Street Institutions and companies like Tesla buying, this is no longer the "people's money". Ultimately, we could see a time when the majority of Bitcoin is in the hands of these established entities.

This is not the only way that the established system can control and completely derail the change in financial structure that is taking place.


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Presently, we are seeing billions of dollar pouring in from venture capital firms. They are funding the start up of many businesses.

This is common in the technology world. Noted companies such as Snapchat, Twitter, and Facebook were all started with venture capital funding.

While this certainly can be a rapid way to increase development, it causes problems down the line. Venture capital firms put up that money seeking a return. If a project is successful, they obviously want to get paid.

Certainly, a case could be made that surveillance capitalism is a result of this. Here we see the outcome of the battle between users and the VC funds. In the early stages, growth was sought. Profitability was not the primary motivation. As the user base grew, success was attained.

Of course, here is where the VCs stepped in and pushed things. They were due to get their return, hence monetization of the platform was required. This led to advertising being put on sites and data surveillance which was also sold. We know it is an extremely profitable businesses.

This, naturally, takes away from the user experience.

Are we looking at replicating the same thing in the crypto world?

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Essentially, at this point, we are. The best example is Coinbase. We cannot dispute the success of this exchange. Here is a crypto-based company that is about to go public on the stock exchange. Just that concept alone is rather ironic.

Leaving that aside, the reason why this is vital is Coinbase was funded through VC money. These people have a strong say in what goes on. Often, the reason for hitting the public markets is because the VCs want to cash out.

As we can see, this process ends up creating the same structures as before. Is Coinbase any different than any other company under the control of Silicon Valley investors? Basically, Coinbase is going from being owned by that lot to Wall Street.

There is no freedom in that.

Cryptocurrency is an interesting animal however. The very nature of the asset is money. Thus, those who are holding cryptocurrency have the potential to be involved in wealth generating assets. The tokenization of a project has the ability to fund itself.

This will harken one back to the ICO craze. We still see the SEC going after companies that raised money through this process. Can we all see how the regulators operate to protect the existing system?

Capital raises can occur a couple different ways. A public offering is viewed as a security. There can be, however, private placements. When individuals seek to fund other individuals, the clarity is much less. It is not automatically a security. Tokenization can help to get around this by not actually offering ownership, hence equity, stake. One simply is issued a certain amount of tokens for being involved earlier.

Another change that we see being made is the change in business structure. Often, projects run afoul of the securities laws by promising some portion of future revenues. This is normal since it is how value is often transferred under our present model.


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Tokenization alters this. Here we can see how tokens gives people access to the upside move once they are publicly traded. They do not, necessarily, convey any "ownership" of the project nor do they entitle one a portion of future proceeds like stock does.

It is where the growth in crypto holdings enters the picture. People often wonder what does one do with the crypto once it is accumulated. In other words, what are the sinks where it can be used?

This provides an ideal answer to that question. Cryptocurrency can be used to help other blockchain projects get started. This can be done by individuals on a small basis to help others get developing. Each success will build on what went before.

What makes this so powerful is the projects that are successful will not end up having the users pitted against the early entrants. This is because everyone has the same motive: increase the value of the platform which should push the token price higher.

Essentially, we are looking at becoming our own in-house, control system by keeping our innovation out of the hands of Silicon Valley vultures.

If we do not do this, they will hijack a lot more than just Coinbase. They will end up in control of most of the application related to blockchain that we see out there.

To get an idea of this, research many of the Ethereum projects that are being worked on. If it is well known, look into how it got started. In many instances, it will be venture capital funding.

Even the crypto "elite" that we see are following a similar model. People like the Winklevoss Twins are actually part of the Wall Street ilk. When their firm gets involved in something, it is no different than any other VC firm. Sure they are major proponents of Bitcoin yet they are doing little to alter the system outside their promotion of that. They way the establish their investments/start ups is no different than we saw in the 1990s with Internet companies.

Here is where we all can step in. As we amass greater wealth due to the growth of this industry, we have the ability to get involved with other projects that will further expand what we are doing. Over time, as we keep the money flowing into development that adds to the entire ecosystem (industry) we will see the offering expand. This will, hopefully, produce an increase in the Network Effect, providing more value.

Rinse and repeat.

In the end, we all must become venture capitalists.

None of this is legal or financial advice. Always do your proper due diligence and seek out the expert advice needed.


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33 comments
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Bang, I did it again... I just rehived your post!
Week 49 of my contest just started...you can now check the winners of the previous week!
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The science is improve when the people to learn everything for alive.

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I love investing in small ventures @taskmaster4450. Even an average user can contribute to the development of any ecosystem. Hive DHF is a great example to fund projects through public money. All Hive users can support & fund various projects from different domains, increasing our 'Range' in the market. A brilliant use case of Crypto. Obviously, we can make this system a bit more Decentralized. It will eventually happen in due time.

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We all can make a difference. Even if it is giving a few tokens to a friend we have who is building something. That can really have a large impact.

As we each get more in our bags, we are able to partake in more. Hopefully this will result in more applications and projects.

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Crypto is doing well and saving lot from debth provided greed is not involved

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Very good text! I agree! Venture Capital is invariably centralizing. On the one hand it accelerates development, but on the other, as you wrote, there is no freedom. Anyway, having companies like this helps in the development of the blockchain universe. But virtual communities are only advancing with decentralization... Awaiting Network Effect! ♨️🦁🚀🚀

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We all have a role to play in this. Yes, virtual communities can fund themselves.

This means we have the ability to operate on a different level than we are witnessing in the present system.

We are all venture capitalists now, both with our money and out activity.

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I was just saying in an earlier comment that I need to be a little less conservative with my investments. I implied that I needed to adopt a bit more of a VC mindset. I need to be willing to take some risks or I am never going to see the kind of returns that I am hoping for. At least short term anyway.

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Well it is a high risk game. That is why VCs look for the major success in 1 out of 10 projects.

But there are plenty of options out there. It also depends upon the amount of resources we are dealing with in compared to what our present financial system is.

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Becoming venture capitalist through growth in other projects on the blockchain is the key here because this is definitely the way we can keep money in circulation while adding to the value of the ecosystem. Great piece @taskmaster4450

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i think this narrative applies to a project like hive. many of us started out as hive stakeholders and now we have diversified into other projects helping them grow and increase the value of our crypto holding. it is one of the easiest and potent ways of generating wealth and keeping it within the community.

many people wonder what they would do when their crypto holdings increase significantly. some hope to sell and take profit. i am doing something similar but in my case, I am trying to invest in other projects and diversify my crypto holding. we all need to aspire to become crypto venture capitalists. unfortunately, we still think in fiat, not crypto. hopefully when that narrative changes we will have more people inclined on holding their crypto.

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For the longest time, for most of us, our input was our activity. Now, we can move it to a different level as some of the projects we are in start to excel.

Things are changing very quickly.

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Really quick. Quicker than I expected and it is sometimes hard to grasp. But I am enjoying the whole experience.

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I think its good for everyone to think of them as venture capitalist. If we have enough numbers even if the amount is small, it will be match the what a rich person can put in. This is the great thing about crypto, we have small portions of a token and be considered as part of the investors. This portion could be as small as 0.001 of a token or even less than one cents.

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Each of us, no matter the stake, can do our part. The more of us, the greater the impact.

We also can enhance all of this through our activity. Thus we are also a part of the network effect we need to really push things forward.

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The secret to crypto's success is its openness to the world to a great extent and most satisfying

  • Emerging currencies for aviation and ticketing
  • NFT for graphics and value stuff
  • Defi turns bank borrowing into a joke and changes the direction of users
  • Here we are changing the concept of social media

And he measure on that thousands of currencies

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I wonder if Hive can do anything like dash Investment Foundation in which the coin holder can decide to vote on proposal either to support a project or just to have a share on the real life company.

At least we are the one controlling the decision not by those high capital elite, but by all of the user no matter how small is one holding.

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The DAO already does part of that without the option of having shares in a real life company. The later might get one into security trouble with the regulators.

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I compound everything that I earn, the investment wehicle has to circulate. The opportunity cost is to damn big to play it passively.

As for coinbase, fuck 'em!

The worst exchange on the planet.

The World largest wealth distribution has begun!

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The World largest wealth distribution has begun!

Well it is likely going to be the largest wealth creation ever.

As for coinbase, fuck 'em!

We really need to see decentralized exchanges explode. This is where the future lies. Hopefully we keep seeing this progressing to a much greater level.

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yeah, wealth creation fits better!

Dex-es will explode over time, there will be no exponential growth as people feel anxious transferring their wealth in digital form.

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Investing in cryptocurrencies is a risk, because just as cryptocurrencies go up and give an extremely high profit, they can also go down and if you as a buyer give in to FOMO you have a higher risk of losing.

In fact something as simple as a worldwide power outage or total disconnection of the internet can end with cryptocurrencies, but as human beings love to take risks, here we are investing in cryptocurrencies.

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In fact something as simple as a worldwide power outage or total disconnection of the internet can end with cryptocurrencies

If that were to happen, cryptocurrency would be the last thing on people's mind. It would also take down not only the present financial system since that is mostly digital (at least in the West and East Asia) as well as the global economy.

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It is true, people do not think much about cryptocurrencies, but it is true that not only the decentralized economy but also the traditional one would fall and we would go back to the stone age.

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As America's founders warned, freedom is a constant struggle. People want to consolidate power in institutions. Individuals must be vigilant in defending their freedom from central control by a few.

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