Crypto's "Secret" is the Magnitude of Change.

“The best entrepreneurs know this: every great business is built around a secret that's hidden from the outside. A great company is a conspiracy to change the world; when you share your secret, the recipient becomes a fellow conspirator.”

-Peter Thiel

In the year 1995, there were many who saw the “secret” of the disruption that was coming from the global adoption of the internet.

Authors like Kevin Kelley were writing about this 20 years ahead of their time.

Yet many people along the way continued to reject what was coming.

The “secret” hiding in plain sight today is crypto and blockchain adoption.

No, it’s not a “secret” that Bitcoin and cryptocurrencies exist. At least in the U.S. there is a reasonably high understanding of their existence.

The secret is the magnitude of changes that are about to occur.

To understand that this is not just dog coins and memes but something that will disrupt every area of our lives: Commerce, health, our social lives, media, news, culture….

Crypto and Blockchain is the biggest secret hiding in plain sight today.

Peter Thiel on Bitcoin a few weeks ago:

“I feel like I’ve been underinvested in it, I thought the secret was already known by everybody.”

The idea of crypto is no longer a secret, but that we’re only at step 1 in their disruption is.

And so, once again, we are on the eve of disruption. Many reject it, and many don’t yet see.

The question is what will you do with the secret that you know?

Simply reading this means you’re seeing this occur. Maybe you still have doubts, or, maybe you’re wondering how to take advantage.

I don’t have specific actions for you today… but I do have some ideas for what to keep in mind, to stay grounded and centered as we take flight.

1. Give yourself enough time to follow your interests and find what resonates with you. 

The biggest mistake you can make is to write off the industry because of a few things (scams etc.) that turn you off. 

Take the time to find substance, instead of losing steam from hype. There will be infinite ways to participate, find what works for you.

2. Bubbles are the necessary fertile ground for experimentation.

 They provide stability for the next era of adoption in the remains that exist after they pop. 

Volatility will continue, don’t let it shake you from understanding that the trajectory is up, even if your stomach is dropping from the downdrafts.

Bubbles install new floors, new infrastructure, and allow for edge-case experimentation.

3. You simply want to be “long” the trend.

You can make many mistakes, but take enough bets directionally long and it will make up for the losses over enough time.

The slow and steady accumulation of knowledge and assets is the way.

4. Disruptive success happens by inversion. Making those who are currently in successful models blind to what is about to occur.

You can’t easily see that which is the inverse of your model for success.

Some things will happen fast, others slow. But enough leverage and the right wedge will displace the old models for the new.

5. Failed experiments will eventually re-emerge successfully.

The second attempt of something can be successful after the first attempt has been written off by the market. 

Most all ideas will work, it just depends on the time horizon you’re looking at.

Timing matters.

6. Tribalism is a symptom of disruption.

Crypto starts at the margins, those who see and want to vote for a change in the world. These early adopters have a strong point of view and vote with time and money for it to exist.

Contrarian ideas with exponential adoption, eventually flip mainstream ideas.

Out-groups become in-groups over time, and the cycle repeats.

7. This will all eventually become mundane, and create new problems.

No one blinks at using Google or thinks about its extreme disruption to the advertising business model. No one thinks twice about mobile phones as “innovative” anymore.

All of this eventually will fade into the background of our daily consciousness. 

And, like all technology, will bring new problems we’ll have to face and grapple with.

——

Secrets hiding in plain sight only happen so often.

Your biggest asset here is taking the long view of what’s to come, connecting to what is inspiring to you, and participating. 

Stay in the game and keep dancing while the music plays… it might go on and change more than you think.


XX I’m David Sherry, I coach early-stage founders, invest in crypto, and write on the overlap of investing, crypto, and the creator economy.

You can join my Telegram chat for more real-time conversations.