Bitcoin Killed Venture Capital
Silicon Valley's reign of terror is over. Venture investing will never be the same.
Silicon Valley is burning and you better not look back.
As if we didn’t have enough scamming going on in this world, the Vulture Capitalists of Silicon Valley have created the most beautiful and elaborate ponzi since Enron. Our fake gurus in Patagonia vests larping about unicorns will soon be a thing of the past.
These Venture Communists have managed to confuse and mystify the world into thinking their model of business and life is somehow superior. They have monopolized early-stage investing and derailed value creation entirely. Sadly, the words “entrepreneur” and “startup” have been tainted because of this. Creating giant pools where money is simply being exchanged back and forth until they finally get a buy out (bailout) from some sorry sucker.
Silicon Valley has marketed itself as a hub of innovation. And while plenty of products we know and love call it home, this supposed thriving hub of innovation is riddled with ponzis schemes and wantrepreneurs. A house of cards. Venture Communists are causing more harm than good. They are holding the world back from progress.
Our self-appointed Great Leaders of the Progressive People’s Repbulic of Silicon Valley have created a world of “me too” businesses. Thousands of start ups collectively creating thousands of interfaces that look and function exactly the same way. (Hint: All they are doing is collecting your data and selling it).
Taking VC is assigning a disability to your business
Venture Communism is an investment cartel with no public access. They get exclusive opportunities aided by government regulation to invest in businesses before anyone else. It’s the same companies inverting in the same companies. An illusion of value being created, when it’s simple money changing hands with the same people over and over. This Silicon Valley circle jerk is coming to an end. They simply are out of touch with what value creation really is. Theranos, the $1B revolutionary blood test that never existed is one of many examples.
Venture Communists are actually pre-internet phenomenon, originating from ship owners being financed by government and royalty hundreds of years ago. It’s always been an exclusive right to the wealthy. Venture Capitalists filled a need, no doubt. When an entrepreneur needed capital, they would go ask a bank or family and friends. Venture Capitalists acted as the alternative, offering both capital and networking within certain domains where you may want to grow your business.
The internet should have put VC’s out a job, but there was one problem. The internet lacked a native, global payment system for users to do business directly. Thankfully, we now have Bitcoin to fill this void.
Bootstrapping on Bitcoin
Bootstrapping your business means starting lean and without the help of outside capital. It means continuing to fuel growth internally from cash flow produced by the business.
Bitcoin, in its hyper-capitalist nature, has completely changed the way a business or idea can get started. No longer do we need to bend the knee to our glorified trust fund babies that call themselves Venture Capitalists (oh, the irony). Thanks to Bitcoin micro-transactions, we can start revenue positive projects and businesses from day0.
In a world based on Proof of Work, we are able to easily sift through the noise and confusion that Vulture Capitalism has created to maintain their control. We can value businesses based on their real-time earnings and traction, from day 0.
Bitcoin is the ultimate public company
While discussing the business dynamics of building on Bitcoin, a friend of mine, Mark Wilcox, explained to me how Bitcoin can be seen as the ultimate public company. As an owner of Bitcoin, building a business on one simply makes sense. The value of micro-transactions and data integrity that Bitcoin offers to creative entrepreneurs an obvious competitive advantage.
Bitcoin acts as a inescapable force. GRAVITY. It sucks you in with its ability to improve all aspects of the internet and the world in general. And as such, any business built on Bitcoin has an inherent competitive advantage in the market. Lately, I have found it hard to come up with a single reason why not to build any business on Bitcoin in 2020 and moving forward. Venture Capitalists will see there monopoly on early startups melt away due to the disruptive nature of this model. Early users of a Bitcoin product are motivated by self interest to participate in the Bitcoin economy. When a new Bitcoin business provides a useful service, Bitcoin investors will have no other logical choice but to participate in it over legacy internet services as this reinvests capital in Bitcoin itself, increasing the potential user base of Bitcoin, which increases the value of your Bitcoins.
Bitcoin businesses will spend less time knocking on doors for funds since they are able to earn revenue in denominations of fractions of pennies, real-time, every step of the way. Bitcoin drastically reduces the barrier to entry for product monetization. One example of this is Twetch, a social network built on Bitcoin. On Twetch, if you like a post, it costs 5cents and Twetch earns a small % of the total cost. Even with a small niche user base, the product is revenue positive and most importantly, self-funded. We are able to imagine a world where developers and designers are paid in realtime, based on usage of the app. No longer do we need to raise a million dollars just to go explore a product-market fit. The company runway is extended and equity is kept in the hands of those who are producing the most value (entrepreneurs).
Bitcoin is a market efficiency
Bitcoin businesses are now incentivized to further specialize and not duplicate work being done. Since you all benefit from the growth of the Bitcoin network itself, it’s in your best interest to further specialize and cooperate. Whether that be partnerships or open-sourcing aspects of your business to allow other developers to create onboarding to the Bitcoin network.
We are leaving behind the underperforming world that Silicon Valley has controlled for far too long and taking matters into our own hands. We can now fund our ideas and products starting with our very first customer, no bank account needed.
Venture Capitalism will still exist but they will need to compete and innovate to be effective in the Bitcoin economy.
3 simple steps to becoming a VC in 2020:
- Learn how to code.
- Own large amounts of Bitcoin (By Bitcoin, I mean BSV, of course).
- Fund every company they invest in with Bitcoin instead of fiat currency.