Consumer Crypto

Two use cases in crypto with product-market fit: speculation and stablecoins.

Today, if you don't play in the speculation stack, you miss out of the $$$ spent by the relatively small population of hardcore crypto users (and occasionally a sudden surge of retail interest when there's a big meme event). This space is attractive for startups since a relatively small number of users by consumer standards can generate a lot of revenue.

Stablecoins grew out of the speculation stack over the last decade, but now with the GENIUS Act, you're going to see a flood of non-crypto companies with existing distribution start to play around with crypto. This space is much harder for startups since stablecoins require massive scale to be a good business (and will become worse if interest rates fall).

The challenge today is that if you're somewhere in-between speculation and stablecoins, the thing you need to make your business successful is users who spend some amount of crypto. And that market is not that big yet.

So the imperative is to grow size of the market. The best way to do that is build fun and entertaining apps and experiences.

This is what we're focused on with the Farcaster app and why I'm constantly telling people other stuff isn't a priority relative to user growth.

They feed each other and will converge. 

But know where you’re starting.

Keeper of the fabric @privy 🇫🇷 

Working to change how value flows online.

I hope they will never converge - speculation is unnecessary component for mass adoption 

It’s crypto casino’s construct that is heavily regulated IRL for a reason 
It’s also a great sales pitch for drifters and scammers 

Speculation will be just negligible part of crypto rails adoption when we will get there 🙏

Pointing out biz mistakes & solving them, Positioning nerd making products Unignorable, also bringing 📬 /buildbetter, 🎙️ /web3magic and /artistspotlight

Will feed each other is the better way to put it.