There is No Bubble


John Paulson, the billionaire investor who accurately predicted the subprime mortgage crisis in 2007 thinks cryptocurrencies are a vacuous financial bubble bound to eventually collapse. Paulson believes, the industry will ultimately prove “worthless” in the long run, he said. 

Paulson is not the only one making this prediction. Lots of other big successful business people like Jamie Dimon and Warren Buffett, share the similar theories about a coming token-fueled financial meltdown. 

When similar notions were shared about social media platforms like pre-revenue Instagram being bought by Facebook for $1 billion, there was some serious doubt whether silicon valley found themselves in another bubble. 

We all know how this turned out…Less than a decade later in 2019 Facebook reportedly collected $9.45 billion USD in ad revenue from Instagram alone.

Marc Andreessen, the man who invented the web browser and Silicon Valley’s highest-profile venture capitalist of the moment with Andreessen Horowitz, was the first to share the notion that there is no tech bubble long term. 

Marc Andreeson is known for betting on big ideas which will reshape the industry

‘I am investing because I don’t think we are in a bubble.’ — Marc Andreeson 2012

Andreeeson Horowitz (a16z), is known for making loft bets on platforms of the future, even when other investors think it’s overvalued. What makes a16z special is they predict the future and invest in projects which will reshape the tech landscape and be platforms for innovation over the next decades..

The main thing we try to do is be as opportunistic as possible, so when the next Zuckerberg walks through the door we’re ready,” Andreessen says. “Having too many theories upfront rules out all the disruption. We try really hard to not have too many theories, that said we have about 18,000.”

Channeling venture capitalist John Doerr who one claimed the internet was under-hyped, Andreessen pointed to the smartphone as similarly under-hyped. “We have never lived in a time with the opportunity to put a computer in the pocket of 5 billion people,” Andreessen says. “Practically everyone is going to have a general purpose computer in their pocket, it’s so easy to underestimate that, that has got to be the really, really big one.”

The same thing holds true for crypto and blockchain. Historically, new models of computing have tended to emerge every 10–15 years: mainframes in the 60s, PCs in the late 70s, the internet in the early 90s, and smartphones in the late 2000s. Each innovation cycle is exponentially larger than the one previous, which makes crypto ripe for massive value returns over the next decades. We will likely see a dip in crypto prices but the projects who bring real utility to the market will come out far ahead of any valuations we are currently seeing.

A16z has already made a massive bet of crypto with a size-able portfolio of which they are constantly looking to grow. Blockchain is still unused by the vast majority of the world’s population with the average person not knowing what Ethereum is. If this is the case, there is ton of room in this industry for projects that provide real value to billions of people around the world. We have never been in a more opportunistic period for startup growth.

Check out a list of some of their top investments below:

Coinbase: 

The largest centralized crypto exchange in the U.S.

Dapper 

Creators behind CryptoKitties, NBATopShot and Flow

Ava

Building an internet of finance where developers can build their own custom blockchain.

Arweave

Arweave enables you to store documents and applications forever.

Maker

World’s first unbiased currency

Opensea

The largest NFT marketplace

Phantom

Solana wallet built for DeFi and NFTs

Solana

Solana is a blockchain network focused on fast transactions and high throughput. 

Uniswap

Swap, earn, and build on the leading decentralized crypto trading protocol.


John Paulson, the billionaire investor who accurately predicted the subprime mortgage crisis in 2007 thinks cryptocurrencies are a vacuous financial bubble bound to eventually collapse. Paulson believes, the industry will ultimately prove “worthless” in the long run, he said. 

Paulson is not the only one making this prediction. Lots of other big successful business people like Jamie Dimon and Warren Buffett, share the similar theories about a coming token-fueled financial meltdown. 

When similar notions were shared about social media platforms like pre-revenue Instagram being bought by Facebook for $1 billion, there was some serious doubt whether silicon valley found themselves in another bubble. 

We all know how this turned out…Less than a decade later in 2019 Facebook reportedly collected $9.45 billion USD in ad revenue from Instagram alone.

Marc Andreessen, the man who invented the web browser and Silicon Valley’s highest-profile venture capitalist of the moment with Andreessen Horowitz, was the first to share the notion that there is no tech bubble long term. 

Marc Andreeson is known for betting on big ideas which will reshape the industry

‘I am investing because I don’t think we are in a bubble.’ — Marc Andreeson 2012

Andreeeson Horowitz (a16z), is known for making loft bets on platforms of the future, even when other investors think it’s overvalued. What makes a16z special is they predict the future and invest in projects which will reshape the tech landscape and be platforms for innovation over the next decades..

The main thing we try to do is be as opportunistic as possible, so when the next Zuckerberg walks through the door we’re ready,” Andreessen says. “Having too many theories upfront rules out all the disruption. We try really hard to not have too many theories, that said we have about 18,000.”

Channeling venture capitalist John Doerr who one claimed the internet was under-hyped, Andreessen pointed to the smartphone as similarly under-hyped. “We have never lived in a time with the opportunity to put a computer in the pocket of 5 billion people,” Andreessen says. “Practically everyone is going to have a general purpose computer in their pocket, it’s so easy to underestimate that, that has got to be the really, really big one.”

The same thing holds true for crypto and blockchain. Historically, new models of computing have tended to emerge every 10–15 years: mainframes in the 60s, PCs in the late 70s, the internet in the early 90s, and smartphones in the late 2000s. Each innovation cycle is exponentially larger than the one previous, which makes crypto ripe for massive value returns over the next decades. We will likely see a dip in crypto prices but the projects who bring real utility to the market will come out far ahead of any valuations we are currently seeing.

A16z has already made a massive bet of crypto with a size-able portfolio of which they are constantly looking to grow. Blockchain is still unused by the vast majority of the world’s population with the average person not knowing what Ethereum is. If this is the case, there is ton of room in this industry for projects that provide real value to billions of people around the world. We have never been in a more opportunistic period for startup growth.

Check out a list of some of their top investments below:

Coinbase: 

The largest centralized crypto exchange in the U.S.

Dapper 

Creators behind CryptoKitties, NBATopShot and Flow

Ava

Building an internet of finance where developers can build their own custom blockchain.

Arweave

Arweave enables you to store documents and applications forever.

Maker

World’s first unbiased currency

Opensea

The largest NFT marketplace

Phantom

Solana wallet built for DeFi and NFTs

Solana

Solana is a blockchain network focused on fast transactions and high throughput. 

Uniswap

Swap, earn, and build on the leading decentralized crypto trading protocol.


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