On Competing Cryptocurrencies

Physical media (record, laserdisc, 8-track, cassette, CD, Betamax, VHS) have switching costs which become barriers of entry and create lock-in/loyalty. Various forms of money have similar properties but as it digitizes, regulations and laws are needed for the same purpose.

Cryptocurrency has no such barriers. That means, over time, the best forms of money will prevail as people seamlessly transition to something better (much easier and faster than physical media transitions). It also means there is no lock-in between different cryptocurrencies.

Which tells me your maximalism is misplaced. Your level 2 or level 3 solutions won’t help you in the long run. The best technology will be used because the costs and usability pains for switching are decreasing.

That also means your new shiny coin with new features won’t take over the market and be the one ring to rule them all. There’s always some new, better shiny around the corner.

What matters is story. Story creates shared belief which underpins the network of trust and usage.

Strong stories mean competing currencies will survive and thrive in an ever-changing landscape of coopertition (competing as we cooperate). Cultivate and share great stories backed by superior technology. Be open to learn, reevaluate, and change. End tribalistic thinking.

(Original tweet thread here)

---

On a personal note, I’m still in Vegas with the family advising on a very interesting project which somehow involves Lambos, McLarens, and Teslas as you can see here

Last night we had a dinner and show at Excalibur which was a blast. The kids love eating with their hands. :)

We also went up in High Roller and Aria and I did the zip line.