Beyond the Hype: a Mature Approach to Investing and Innovating in Crypto

The following is an edited transcript of the keynote presentation delivered by David Orban at AIBC Eurasia 2023 in Dubai in March.

We're at an interesting stage as we look back over the 10 years since blockchain, starting with Bitcoin, has been around. As investors, it's crucial to examine the long-term trends, similar to when we invested in traditional equities and startups where the period before liquidity was typically six to ten years. Understanding how to analyze these trends is essential, and that is what we do at Beyond Enterprizes, where I am the managing advisor. Our focus is both on projects through our advisory activities and supporting fellow investors with the Blockchain Investor Consortium we created.

I've been involved in the world of Bitcoin since the beginning, as evidenced by a tweet from over ten years ago, where I welcomed Bitcoin and anticipated the competition it would bring to traditional fiat currencies. I even sold the tweet as an NFT a while ago, and the collector plans to wait another ten years to see what happens with it.

The stories and metaphors we use to describe the technologies we employ are important. I suggest not using the term "mining" but rather "weaving," for the proof of work activity securing the Bitcoin network, as it better represents the collaboration and collective efforts involved in creating patterns of applications.

If you're interested in delving deeper into some of the topics covered in this talk, I've summarized some of my thoughts in the book Something New.

Machines are becoming increasingly important in helping us understand, analyze, and invest in the world of blockchain and crypto. The intersection of artificial intelligence and blockchain technology is valuable. As an investor, the most important chart to be familiar with is not the daily or hourly sentiment and technical analysis but rather the long cycle of Bitcoin halving. The algorithm that reduces the rewards received by weavers (or miners, as you may be accustomed to call them) drives a natural appreciation of Bitcoin, consequently sparking renewed enthusiasm throughout the ecosystem. The biggest challenge is welcoming newcomers who may dismiss Bitcoin and crypto as a fad during downturns, only to wonder later why Bitcoin hasn't disappeared or died.

The speed at which technological change is happening is not only increasing, but we're experiencing an increasing rate of acceleration. I call these "jolting technologies," which can be mathematically measured and plotted. As we spread our bets on hundreds or thousands of projects with low barriers to entry and high risk, the diversity we observe benefits not only niches but also creates an interconnected network of value creation, offering new solutions that are technically interoperable and connect machines and people.

It is crucial, especially now, to understand that machines are not our enemies. Be it blockchain or AI, we must create systems aligned with a positive human future, with incentives that support beneficial outcomes for human flourishing.

We are closing the gap between what machines can do and what humans can do, not only with the amazing performance of systems like ChatGPT but also by using tools and systems on the human side for an increasingly intimate integration or hybridization. Whether you adopt brain-computer interfaces or use other systems, decision-making without machine aid will be as random and luck-based as ancient superstitious rituals.

We are experiencing a phase transformation, looking at significant changes that can define the course of human history. As creators of projects and investors, our job is to recognize that the time to build during bear markets is when people with grit, persistence, and long-term vision take action. During the hype, there's an abundance of less informed money, but as a startup founder, you want to find the smart money that will be there during the tough times when bear markets arise instead of just bull markets.

I believe in technology and its power to benefit the world and humanity. I am looking forward to blockchain technology and artificial intelligence going hand in hand, both on our planet and as we expand into space. I believe this progress is unstoppable, and I feel fortunate to be able to experience it alongside all of you and to actively participate in it.