There is an “architectural shift” in technology and in the world brought upon by cryptoassets, which many crypto supporters miss, according to Marc Andreessen, co-founder of venture capital powerhouse Andreessen Horowitz (a16z), and founder of Netscape Communications Corporation.
Today, a16z announced a new USD 2.2bn fund to continue investing in crypto networks.
Meanwhile, in a recent interview with economic blogger Noah Smith, Andreessen compared the topic of crypto with the parable of the blind men and the elephant, allowing people to interpret many different parts in many different ways, or use it to make their point. As an example, he gave people seizing on “the money part,” then either glorifying crypto as a new type of monetary system that brings freedom from the nation-state, or “crucify[ing] it as a danger to economic stability and the ability for governments to tax.”
However, while these are interesting arguments, Andreessen stressed,
“I think they all miss a more fundamental point, which is that crypto represents an architectural shift in how technology works and therefore how the world works. That architectural shift is called distributed consensus — the ability for many untrusted participants in a network to establish consistency and trust.”
According to him, the Internet has never had this until now and it will take thirty years to work through all of the things that can be done as a result. While money is the easiest application of this idea, other things that can now be built in theory include Internet native contracts, loans, insurance, title to real-world assets, unique digital goods aka non-fungible tokens (NFTs), and online corporate structures such as digital autonomous organizations (DAOs), among others, the investor said.
This also presents a great impact on and shift in incentives – which further impacts reaching these applications.
Collaborative human effort online so far was either in the form of a literal adoption of real-world corporate norms, such as a company with a website, or an open-source project like Linux that didn’t have any money directly attached to it, said Andreessen.
“With crypto, you can now create thousands of new kinds of incentive systems for collaborative work online, since participants in a crypto project can get paid directly without a real-world company even needing to exist,” he said.
While open-source software development has been great, people are generally willing to work more for money than for free, “and all of a sudden all those things become possible and even easy to do.” And though it will take a few decades to see the results of this as well, “I don’t think it’s crazy that this could be a civilizational shift in how people work and get paid,” said Andreessen.
He also discussed the idea that AI is somewhat a left-wing idea, having centralized machines making top-down decisions, but that crypto is a right-wing idea, having many distributed agents, humans and bots, making bottom-up decisions, he said, citing another prominent venture capitalist Peter Thiel, co-founder of PayPal.
The tech industry has historically been dominated by left-wing politics and today’s big tech companies are intertwined with the US Democratic Party, Andreessen said, noting,
“Crypto potentially represents the creation of a whole new category of technology, quite literally right-wing tech that is far more aggressively decentralized and far more comfortable with entrepreneurialism and free voluntary exchange. If you believe, as I do, that the world needs far more technology, this is a very powerful idea, a step function increase in what the technology world can do.”
As for a16z becoming known for innovating in the space of venture capital itself, Andreessen said that there is something old and something new about venture capital – and this something new includes crypto.
“So we sit at the vortex of this combination of the very old and the very new. It’s certainly possible that venture capital itself gets pulled into this vortex and comes out the other side radically transformed, and in fact, this is what some of the smartest crypto experts are predicting,” Andreessen concluded.
Title: How to Accept Bitcoin in Business: A Comprehensive Guide
In the era of digitalization, the way we do business is continuously evolving. With the emergence of new technologies, we are witnessing more and more businesses adopting innovative payment solutions. One such innovation that has taken the world by storm is Bitcoin. It is a decentralized digital currency that enables peer-to-peer transactions without the involvement of intermediaries.
Bitcoin has gained widespread popularity in recent years, and many businesses are now considering accepting it as a form of payment. However, the process of accepting Bitcoin in business may seem overwhelming for those who are not familiar with cryptocurrency. In this article, we will guide you through the essential steps of accepting Bitcoin in business and help you understand the benefits of doing so.
Benefits of Accepting Bitcoin in Business:
– Lower transaction fees: The first and most significant benefit of accepting Bitcoin in business is the low transaction fees. When compared to traditional payment methods such as credit cards and online payment gateways, Bitcoin has significantly lower fees, which means more savings for businesses.
– Faster transactions: Since Bitcoin is a digital currency, the transactions are processed much faster than traditional payment methods. This means that businesses can receive payments instantly, improving their cash flow and overall efficiency.
– Global reach: Another advantage of accepting Bitcoin in business is that it has a global reach. Since it is a decentralized currency, there are no international borders or regulations, allowing businesses to accept payments from customers all over the world.
- No chargebacks: Unlike credit card payments, Bitcoin transactions cannot be reversed or charged back. This eliminates the risk for businesses of losing money due to fraudulent chargebacks.
– Innovative image: By accepting Bitcoin, businesses can showcase their innovation and forward-thinking approach to customers. This can attract a new customer base and improve the overall brand image.
– Investment opportunity: Accepting Bitcoin in business also opens up opportunities for businesses to use it as an investment asset. By holding some of the received Bitcoin, businesses can potentially benefit from its value appreciation in the long run.
Now that we have established the benefits of accepting Bitcoin in business, let’s dive into the essential steps to accept Bitcoin as a form of payment.
1. Create a Bitcoin Wallet:
The first step to accepting Bitcoin in business is to set up a Bitcoin wallet. Bitcoin wallets are digital spaces where you can store, send, and receive Bitcoin. There are two types of wallets – hot wallets and cold wallets. Hot wallets are connected to the internet, making them easy to use and accessible, but also more prone to cyber-attacks. Cold wallets, on the other hand, are offline and offer more security.
2. Get a Bitcoin Payment Processor:
Once you have set up your wallet, the next step is to get a Bitcoin payment processor. A Bitcoin payment processor is a service that facilitates transactions between buyers and sellers. It converts Bitcoin payments into the local currency of your choice and transfers the funds to your bank account. Some popular Bitcoin payment processors include BitPay, Coinbase, and CoinGate.
3. Display your Bitcoin Payment Option:
After setting up your wallet and payment processor, it’s time to let your customers know that you accept Bitcoin as a form of payment. You can do this by displaying the Bitcoin logo on your website or adding it as a payment option in your online store. This will help attract Bitcoin holders as potential customers.
4. Set your Prices in Bitcoin:
To make the payment process smoother for your customers, consider setting your prices in Bitcoin. This way, customers can see the exact amount they need to pay in Bitcoin without having to convert it from their local currency. You can also choose to offer discounts to customers who pay in Bitcoin to incentivize them to use this payment method.
5. Educate your Staff:
It is essential to educate your staff about Bitcoin and how it works. This will help them better assist customers who choose to pay using Bitcoin. They must understand the basics of Bitcoin, such as the process of making a payment, how to check for successful transactions, and how to issue refunds.
Some Tips for Accepting Bitcoin in Business:
– Keep track of your transactions: Like any other payment method, it is crucial to keep track of your Bitcoin transactions. This will help you reconcile your accounts, track your profits, and ensure the accuracy of your financial records.
– Consider tax implications: Depending on your location, accepting Bitcoin as a form of payment may have tax implications. It is essential to consult with a tax professional to understand the tax regulations in your area and how accepting Bitcoin may impact your business.
– Familiarize yourself with the volatility of Bitcoin: It is no secret that Bitcoin is a highly volatile currency. It is essential to understand this volatility and have a plan in place to manage it. This can include converting some of your Bitcoin earnings into the local currency and holding the remaining portion as an investment asset.
Case Study:
A great example of a business successfully accepting Bitcoin as a form of payment is Overstock, an online retailer. Overstock started accepting Bitcoin in 2014 and has seen a steady increase in sales due to this payment option. They also hold a portion of the Bitcoin they receive as an investment, which has proven to be profitable for the company.
In conclusion, accepting Bitcoin in business can be a beneficial move for businesses, considering the benefits it offers and the growing popularity of this digital currency. By following the steps outlined in this article and keeping the tips in mind, businesses can smoothly integrate Bitcoin as a payment method and reap its rewards. So, don’t be afraid to adapt to new technologies, and embrace the future of payments by accepting Bitcoin in your business today.
