Two VCs on Why This Is the Perfect Time to Invest in Crypto - Ep. 522

55 snips

Jul 25, 2023

Chris Burniske and Joel Monegro, partners at Placeholder VC, discuss their bullish outlook on the crypto market despite recent turmoil. They explore why now is a prime time for Web3 investments due to favorable macroeconomic conditions and technological advancements. The duo reflects on past cycles of crypto, including Bitcoin's influence and the implications of interest rates. They also analyze the Ripple ruling's impact on the industry and share insights on potential self-regulation within crypto, urging optimism as the market evolves.

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INSIGHT

Crypto Cycles

Crypto cycles are influenced by Bitcoin halving, macro factors, and product cycles.
These factors affect liquidity, interest rates, and risk asset pricing.

INSIGHT

Tech and Financial Cycles

Crypto's value is tied to government interest rates, like other assets.
It also follows technology cycles with distinct phases like installation, frenzy, and deployment.

INSIGHT

Crypto Carnage of 2022

The year 2022, marked by collapses like Terra Luna and FTX, highlighted systemic risks in crypto.
This period, dubbed "crypto carnage", prompted reflection on building and investing practices.

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Despite the doom and gloom, Placeholder VC partners Chris Burniske and Joel Monegro are highly bullish on the present moment. “We’re all going to look back on this period and remember it as fondly as we remember ‘18 and ‘19,” Monegro tells Laura Shin. The two long-term investors explain why the confluence of macroeconomic factors and crypto-native (and AI) innovations make this the ideal time to invest in a Web3 future. They cut their teeth on Bitcoin, they grew up with Ethereum; hear what they think is next.

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Show highlights:

why Chris says crypto’s four-year cycle will likely play out once again
the role of interest rates in asset valuation
whether the crypto industry has learned its lessons from the “crypto carnage” of 2022
whether there’s a future for KYC’d DeFi
when failing in crypto should be considered a crime, as in the Do Kwon case
what could happen with the rate hikes and how the macroeconomic environment affects the markets
how the ruling in the Ripple case impacts the development of new crypto companies and user adoption
whether Joel felt relieved by the ruling, considering Placeholder has invested in many tokens that were named as securities by the SEC
what Joel thinks of the new crypto bill in Congress and how he wishes that smart contracts were used to self-regulate the industry
what Joel and Chris think of the delicate situations of crypto giants such as Binance and DCG
whether the fat protocol thesis still holds up and whether it colors Placeholder’s current investment thesis
why most of the Layer 1s will become rollups, according to Chris
why Chris is bullish on Solana, despite the massive collapse in value following the FTX debacle
how NFTs will play a significant role in “establishing the provenance of content”
whether AI agents will become crypto power users

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Guests:

Chris Burniske, partner at Placeholder VC
Previous appearance on Unchained:
2022 in Review + How Cobie and Chris Burniske Are Playing the New Year
Cobie and Chris Burniske on How to Navigate a Crypto Bear Market
How To Value A Crypto Asset
Joel Monegro, partner at Placeholder VC.
Placeholder’s Joel Monegro on the Fat Protocols Thesis

Two VCs on Why This Is the Perfect Time to Invest in Crypto - Ep. 522

Crypto Cycles

Tech and Financial Cycles

Crypto Carnage of 2022

Show highlights:

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