No I’m not exiting blockchain investments. The industry will 20x in the next decade and more. I’m only exiting bitcoin.

Before the maxies dunk on me, I’m not saying bitcoin would go to zero. It won’t. It would probably go up, a lot. But that doesn’t change what I’m saying below.

If you’re a farmer, you 1) collect this year’s harvest —> 2) use that money to buy seeds, fertilizers, machines —> 3) plant more crops for next year.

Step 2) is where magic happens: you invest in productive assets creating more outputs tomorrow—> the total economic pie 🥧 gets bigger over time.

Imagine if the farmer says, “Looks like the world is going to hell. I don’t want to buy a new tractor. I’ll buy gold and sit on it to be safe.”

If everyone thinks that way, sooner or later there will be no 🥧 for anyone. Economy stagnates.

It’s a fiduciary duty of an investor / capitalist to allocate money where you think more pies can be created for tomorrow.

How is that related to bitcoin?

When I first heard of bitcoin, I was like “Whoa, this is amazing new tech going to change the world 😻”.

But as I learned more about blockchain, and what else are being built on chains like ethereum and solana, I realized the amazing things in crypto are all happening outside bitcoin.

Bitcoin is comfy in its store-of-value narrative. But any “store of value”, like gold, does not create more 🥧. They sit in a vault (or a Ledger Nano) and look pretty.

You say, I don’t care about this investor-fiduciary-duty bullshit. I hodl bitcoin because it will go up.

The thing is assets that create bigger 🥧 beat assets that sit pretty over time.

In the last 30 years, gold price went up 5x, while S&P went up 10x and NASDAQ 23x.

Why? Companies make 🥧s. Growth companies make bigger 🥧s.

Sure there’re periods when gold / commodities outperform stocks. But in the long run non-creative assets are bound to underperform creative assets.

A revolution is happening in crypto. DeFi is overhauling finance. Community tokens are reinventing creator economy. So many smart people are working to invent new use cases using blockchain.

All that 🥧 enlarging activities are happening outside bitcoin.

Do I want to be part of the once-in-a-lifetime pie creating evolution, or do I want to sit idle in Gold 2.0?

I pick the former.