Everyone Will Be an Investor
By the end of this decade, almost everyone who's online will become an investor.
We’re entering an era of unprecedented accessibility. The number of internet users in India has more than doubled since 2015 to a total of 760 million. That number is projected to reach a billion by 2025—and that’s just one country.
New technologies emerge every day, bringing with them novel liquid assets available to anyone, regardless of age or location. Meanwhile, amidst rampant government money printing, people’s dollars grow less valuable day by day.
Traditional methods are fading, and people are looking for new places to protect and grow their hard-earned savings. Today, as old barriers come down and new investments appear daily, anyone can—and will—be an investor.
Market barriers are coming down
Everyday people have more access to markets than ever before. The blockchain has torn down traditional barriers.
Recent phenomena like Dogecoin and Gamestop prove this. The GME pump can only happen when markets are innately accessible and vast numbers of small time traders can coordinate regardless of timezone, nationality, age, or any other consideration. The small plebes' can now take on the big bad hedge funds.
Blockchain bring markets to everything
When Satoshi created Bitcoin, they effectively brought markets to everything. We’ve already seen financial coins like BTC, programmable ones like Ether and Stacks, memecoins like Doge, and municipal coins like our own CityCoins.
Soon, we’ll see Affinity Coins—tokens designed to signal support of a particular belief. Perhaps you’re vegan, and you want to showcase and promote that ideology. With a token, you can.
Like iron filings to a magnet, every new token gathers a market around it. With their lower cost of entry, there’s virtually no limit to how many of these new markets one person can invest in.
This is more than just a pastime.
Necessity drives behavior
People are exiting into crypto, stocks, and real estate, (at least partially) as a response to trillions of dollars of new money created out of thin air by the US government. Faced with an uncertain future, savvy investors are moving into hard assets that are more likely to retain their value—or, at the very least, hedge against inflation.
Why keep your money in USD or fiat when you can park it in much higher-performing assets like BTC whose supply remains fixed, or BTC-yielding assets like Stacks?
Monetary policy is out of date
Many experts view the economy as a contained fish tank. They discount things like capital flight, migration, and other factors that undermine the extent of control they think they wield over inflation and the money supply. Common thought is that just because you have tools to manipulate the money supply, you should use them to get your desired result.
A time is approaching when those tools will no longer work. We may see Social Security insolvency. Perhaps the US will monetize its debt via money printing and other traditional monetary policies. When that day arrives, we'll be so far off that it'll be difficult to recover, even with hyper-aggressive taxation.
Today the USA’s prime export is not a physical good like oil or grain: it’s USD. Other countries who value USD are probably not going to let us fail. But it's unclear if they'll tolerate the excessive money printing we're doing—it’s essentially confiscating the wealth of other nations. Every country wants to ensure its citizens are better off than they were the year before. Given the way things are going, it seems it’ll quickly become harder and harder to rationalize propping up the US dollar.
Crypto’s accessibility makes it a safe place to escape inflation. We suspect the hard asset prices, including crypto, are going to rise tremendously, and that BTC will still beat nearly every investment over the next decade, whether that’s real estate, stocks, etc.
Bitcoin is a universal measure of wealth
As USD loses more value, the nominal value of these new markets will steadily climb in proportion. By decade’s end the percentage of people who measure their wealth in BTC versus USD will increase, because its unique combination of limited supply and hard-coded structure give it concrete parameters. Some people like to call BTC an “immovable object.”
As opposed to USD, which constantly fluctuates in supply, Bitcoin will not. Although it’s volatile today, BTC’s perceived inevitability enables people to view it as their primary asset and measuring stick. You’ll measure your crypto assets, your real estate, your USD against your BTC.
Will USD still be around in ten years? Of course. But it’ll be worth considerably less, and people will choose to store more of their savings and investments elsewhere.
A new market calls for new investors
The most valuable investors in this new environment will be those that can replicate the meme of their holdings by educating others. No longer will venture capital firms with the best track record but no media arm dominate the landscape. This new paradigm will reward VCs who can signal the best investments and spread a message.
People will really put their money where their mouth is. A market of tokens is a market of ideas. Soon, saying “I like that idea” will be the same as saying “I like that coin” or “I like that stock.”