Avichal Garg, Managing Partner at Electric Capital, argues on 20VC that Silicon Valley's network effects and tribal knowledge on scaling companies will draw crypto projects back.
Prediction Not checkable as stated
Garg: Crypto dApps and computation will not create most long-term value
“Even though most of the dollars today, I think, are going towards those last two buckets of distributed computation and distributed applications, I don't think that's actually where most of the really new value will get created in the long term.”
Opinion
Garg: The real threat to crypto is authoritarian adoption, not bans
“The real risk, in my opinion, therefore, is not that the government bans this stuff. I think the real risk, actually, is that nefarious governments fully, fully embrace it.”
Insight
Garg: Fully decentralized teams cannot effectively scale complex tech projects
“Yeah, I generally think decentralized teams won't work. I think in the very, very early days of any platform, they can work, and it's because there is not that much competition, and a lot of what you need to build out is infrastructure, and you have a small nu…”
Prediction Not checkable as stated
Garg: Mid-tier venture firms face severe disruption from on-chain capital competition
“The people I think should be worried are if you're like VC firm, 15 through 1000, right? Like I think you get disrupted because capital, as it becomes a commodity, if you're a venture firm, 25 and you're like not breaking the top decile in terms of returns, An…”
Prediction Not checkable as stated
Garg: Bitcoin could become a central bank reserve larger than the yuan
“Could Bitcoin actually be a Reserve currency that central banks are purchasing that could be bigger than the yuan or the euro in central banks. I don't think that's crazy, actually.”
Prediction Not checkable as stated
Garg: Ethereum could become a neutral $1T GDP digital settlement layer
“Creates this opportunity for a third system, right? An incredibly neutral third system, which might be Ethereum, which effectively starts to behave like a digital economy and a digital settlement layer for all the transactions that need to exist in a third pla…”