Web3 Wednesday: Crypto Investing Wisdom, The Great Online Game, 2022 NFT Predictions, & More 💰 🎮
Issue #2
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My goal is to bring diverse minds together to accelerate our web3 education to build a better future. My hope is that these recaps will be in service of that objective.
Here is today’s roadmap:
Tweet: punk6529 with investing wisdom 💴
Article: Playing the Great Online Game 🎮
Podcast: 2022 NFT predictions ðŸ’
P.S. If you are new here, take a look through this web3 starter guide to get caught up to speed :)
Tweet:
Investment advice in crypto is hard to understand and harder to provide. The space is volatile and figuring out where to put your money can be scary. This Twitter thread from punk6529 is important for the following people:
If you are thinking of investing in crypto.
If you are thinking of increasing your % allocation in crypto.
If you are thinking you are over-allocated in crypto.
Here are a few takeaways:
Today about 0.5% ($2T) of global asset value is represented by digital assets. If you believe this will increase over time, investing in web3 may be your best bet.
If you are just starting, ‘blue chip’ tokens like Bitcoin and Ethereum are recommended. Although given their scale and maturity, the crazy 100x-1000x returns you hear about are unlikely.
Be mentally and financially prepared for a 50%-80% drop in your assets in the short term. This has happened before and could happen again. You have to know how much risk you can handle and keep sizing down until the point you can live through downturns without the need to sell.
Personally, I have been thinking about investing in crypto like venture capitalists invest in start-ups. Make a series of bets, expect 70% to lose money, 20% to provide a decent return, and hope that 10% of them go 10x-100x. Unlike venture investing, a lot of information on the growth of web3 projects is public. If you want to go deep, there is minimal information asymmetry between yourself and a professional investor.
Today you can own a web3 project’s tokens just like any early employee or investor of a start-up would. Investing at an early stage web3 project would be analogous to you being able to invest in Uber’s Series A. The future regulation in this space is uncertain, but at the moment, the opportunity to identify the right projects and invest accordingly for retail investors is powerful (if you are aware and comfortable with the associated risks).
Article:
The Great Online Game - Packy McCormick
I will be sharing a lot of Packy’s writing. He has become a leading writer in web3 and his thoughts have shaped my thinking in this space. ‘The Great Online Game’ is one of my favorites.
Here are a few takeaways:
People underestimate how powerful the Internet is. Through writing, podcasting, and posting on social media, you can meet new friends, mentors, and colleagues that can change your life for the better.
The Great Online Game is also an Infinite Game. The Infinite Game includes infinite players who have authentic interactions, care about long-term relationship building, and play for the purpose of helping others win the game. On the contrary, a finite player seeks power, displays self-sufficient strength, are theatrical, dramatic, and plays at the expense of other players.
Web3 and crypto supercharge the game. Cryptocurrency is money for the online game. NFTs are the property rights for the online game. DAOs are the way to coordinate players in the online game. This game is becoming enticing for new participants due to the decreasing friction of creating digital wealth through web3 native products.
I have been a participant in the Great Online Game for years through posting on social media, writing a newsletter, and podcasting. I have benefited from chance encounters, built strong relationships, and learned more about myself and the world around me.
Anyone can play the Great Online Game. All you need is knowledge and curiosity.
Podcast:
What to Expect in the 2022 NFT Market | Overpriced JPEGs
This podcast brings on NFT experts to get their 2022 predictions. Here are a few that stood out:
A strong belief that many NFTs will fall in price this year.
Layer 2 solutions like Matic will host the next wave of NFTs.
OpenSea will face increased competition by Coinbase NFT, marketplaces hosted on Solana, and other decentralized marketplaces launching this year.
Listen to it on Apple Podcasts or Spotify.
Bonus:
A few other articles and Twitter threads from this week:
Optimal Token Distribution - Cooopahtroopa
Web3 people know that the industry has flaws - Patrick Rivera
Trading the metagame - Cobie
The Laboratory for Complex Problems - Packy McCormick
That does it for this week of Web3 Wednesdays.
Till next time,
Jay 💕