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.
Unlocking Wealth: Dive into the World of Digital Real Estate NFT Fund
Have you ever dreamed of owning a piece of real estate in a prime location, but the high costs and barriers to entry have always kept that dream out of reach? Well, thanks to the rising trend of non-fungible tokens (NFTs), that dream may soon become a reality through the world of digital real estate NFT funds.
Before we dive into the details of how digital real estate NFT funds work and why they are gaining popularity, let’s first understand the concept of NFTs.
What are NFTs and How Do They Work?
NFTs, or non-fungible tokens, are unique digital assets that are verified on a blockchain. They function similarly to physical assets by providing proof of ownership and scarcity. However, unlike physical assets, NFTs exist solely in the digital world and cannot be replicated, making them one-of-a-kind.
NFTs are created using blockchain technology, which is a decentralized digital ledger that records and verifies transactions. Each NFT is represented by a unique digital code, making it impossible to duplicate or counterfeit. This gives NFTs a level of authenticity and scarcity that traditional digital assets lack.
Why Digital Real Estate NFTs?
With the rise of NFTs, it was only a matter of time before the concept was applied to the real estate industry. Real estate has always been a lucrative and stable investment option, but its high costs and barriers to entry have made it inaccessible to many investors. Digital real estate NFTs, on the other hand, offer a more affordable and accessible alternative.
Here are some of the key benefits of investing in digital real estate NFT funds:
1. Fractional Ownership
One of the biggest advantages of investing in digital real estate NFT funds is the opportunity for fractional ownership. This means that multiple investors can own a share of the same property, similar to owning shares in a company.
By breaking down the ownership of a property into smaller NFTs, investors can purchase a much smaller percentage of the property, making it more accessible to a wider pool of investors. This allows individuals with smaller budgets to diversify their investment portfolios and potentially see higher returns.
2. Increased Liquidity
Traditional real estate investments are known for their lack of liquidity, meaning that it can be difficult to buy and sell quickly. However, with digital real estate NFT funds, investors can easily buy and sell their NFT shares on secondary markets, providing a greater level of liquidity.
This opens up the real estate market to a wider range of investors, including those who are looking for short-term investment opportunities. Additionally, the use of blockchain technology ensures all transactions are secure and transparent, further increasing investor confidence in the market.
3. Lower Costs and Barriers to Entry
Investing in traditional real estate requires a significant amount of capital and usually involves various costs such as property taxes, maintenance fees, and legal fees. On the other hand, digital real estate NFT funds eliminate these costs and barriers to entry, making it a more accessible investment option for individuals with smaller budgets.
Additionally, investors can avoid the hassles of property management and maintenance, as these tasks are handled by the fund managers. This allows investors to focus on their investment without having to worry about the day-to-day management of the property.
4. Potential for Higher Returns
Real estate has long been known as a stable and reliable investment option, offering consistent returns over time. However, with digital real estate NFT funds, there is potential for even higher returns due to the lower costs and ability for fractional ownership.
Furthermore, the increasing popularity and demand for NFTs can also contribute to the value of the digital real estate NFTs, increasing the potential for appreciation and returns on investment.
How to Invest in Digital Real Estate NFT Funds
Investing in digital real estate NFT funds is a relatively new concept, but it is gaining popularity quickly. Here are the steps to take if you are interested in investing in this emerging market:
1. Do Your Research
Before investing in any new market, it is important to do your own research and fully understand the risks and potential returns. Familiarize yourself with the concept of NFTs and how they work, as well as the specific fund you are considering investing in. Look for reviews and feedback from other investors to get a better understanding of the fund’s reliability and performance.
2. Choose a Reputable Platform
Make sure that the platform you choose to invest in has a good reputation and is backed by trusted and reputable companies. Ensure that the platform has proper security measures in place to protect your investments and personal information.
3. Diversify Your Investments
Like with any investment, it is important to diversify your portfolio to minimize risks. Do not put all your money in one fund or one type of NFT. Instead, spread your investments across multiple funds and NFTs to mitigate potential losses.
4. Stay Informed
The world of NFTs is rapidly evolving, and it is important to stay informed about any changes or developments in the market. Keep up to date with news and industry updates, and constantly evaluate and adjust your investment strategies as needed.
The Future of Digital Real Estate NFT Funds
As technology continues to advance, it is likely that we will see even more innovations within the world of NFTs and digital real estate NFT funds. This emerging market has the potential to offer exciting investment opportunities and unlock wealth for a wider range of individuals.
If you are interested in exploring the world of digital real estate NFT funds, make sure to do your research, choose a reputable platform, and diversify your investments. With the right approach, you could be well on your way to unlocking wealth through this exciting and innovative market.
