Nov 8, 2021 • Sequoia Managing Partner Doug Leone answers audience questions at Web Summit 2021 in Lisbon. At the 7-minute mark:
I would like to know: What are your thoughts about cryptocurrencies?
I think of crypto as I thought about the ARPANET. In 1988, if I told you about the ARPANET—prior to Netscape, we're talking 1988—you would have thought it's a connectivity network. You would have by no means of envisioned:
A Netscape
and never mind that, Google
and never mind an Uber
or a DoorDash
or an Airbnb
So I think cryptocurrency is the weapons for the young generation to attack the older generation and have wealth transfer.
I think you have now the ability to attack all the systems that my generation have
built. Keep in mind when, my parents were protesting in the 60s—they didn't
protest—but if they protested, they had a sign that said, you know: No War.
You have something far more powerful called blockchain.
I think it's serious.
You also should know that in the early days of of a market, we over estimate its abilities and later on we underestimate it.
So, do I think crypto are in a little bit of a bubble? Absolutely. Do I think NFTs are a little bit of bubble? Yeah, there's really 20, 000 whale users that are buying and reselling apes, you know, and Crypto Punks and so on, but it's going to go mainstream.
And so you have to appreciate all these are extremely real.
I think of it as internet 3.0 and 4.0.
I think the real interesting area of DeFi is going to happen probably next 5 to 10 years first at the front end then on the back end.
I was having a dinner and I want to tell you: the CEO of a major bank, who said this crypto stuff is baloney. We moved three trillion dollars a day.
I asked them: Sir so-and-so, what is your take rate on the three trillion dollars?
He said: 10 bips!
I go: That's exactly why crypto is going to happen.
And so, I think it's real, I think government are going to try to control it through taxation, because the cat is out of the bag already. They do not want a shadow currency. That would be a mistake if the community tries to implement a shadow currency because governments are going to be rejecting that.
It's a way for the West to stay competitive against the East.
China, as you know, has outlawed it. So, it's an opportunity for the West to stay advanced and…
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Doug Leone from Sequoia on Crypto
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Nov 8, 2021 • Sequoia Managing Partner Doug Leone answers audience questions at Web Summit 2021 in Lisbon. At the 7-minute mark:
I would like to know: What are your thoughts about cryptocurrencies?
I think of crypto as I thought about the ARPANET. In 1988, if I told you about the ARPANET—prior to Netscape, we're talking 1988—you would have thought it's a connectivity network. You would have by no means of envisioned:
A Netscape
and never mind that, Google
and never mind an Uber
or a DoorDash
or an Airbnb
So I think cryptocurrency is the weapons for the young generation to attack the older generation and have wealth transfer.
I think you have now the ability to attack all the systems that my generation have
built. Keep in mind when, my parents were protesting in the 60s—they didn't
protest—but if they protested, they had a sign that said, you know: No War.
You have something far more powerful called blockchain.
I think it's serious.
You also should know that in the early days of of a market, we over estimate its abilities and later on we underestimate it.
So, do I think crypto are in a little bit of a bubble? Absolutely. Do I think NFTs are a little bit of bubble? Yeah, there's really 20, 000 whale users that are buying and reselling apes, you know, and Crypto Punks and so on, but it's going to go mainstream.
And so you have to appreciate all these are extremely real.
I think of it as internet 3.0 and 4.0.
I think the real interesting area of DeFi is going to happen probably next 5 to 10 years first at the front end then on the back end.
I was having a dinner and I want to tell you: the CEO of a major bank, who said this crypto stuff is baloney. We moved three trillion dollars a day.
I asked them: Sir so-and-so, what is your take rate on the three trillion dollars?
He said: 10 bips!
I go: That's exactly why crypto is going to happen.
And so, I think it's real, I think government are going to try to control it through taxation, because the cat is out of the bag already. They do not want a shadow currency. That would be a mistake if the community tries to implement a shadow currency because governments are going to be rejecting that.
It's a way for the West to stay competitive against the East.
China, as you know, has outlawed it. So, it's an opportunity for the West to stay advanced and…
It's a hell of a weapon for the young generation.