1. NFTs
Non-fungible tokens, or NFTs, allow any piece of digital content (art, videos, etc.) to be purchased and traded like physical art. Yes, I previously called NFTs a worthless, made-up use case for digital currencies, and that their energy consumption would accelerate Earth’s global warming.
Now I understand—these are just growing pains of the blockchain, and digital artists’ work was previously undervalued. Who could begrudge artists getting what they deserve?
And no, my change of heart has nothing to do with my late aunt’s estate bequeathing me the $1.5mm USD NFT for 2009 internet meme David After Dentist.
2. Decentralized Finance (or DeFi)
Decentralized Finance (or DeFi) is a new ecosystem of financial instruments all built on top of the blockchain. Sure, a few months ago I passionately argued that the methods DeFi platforms used to achieve 7-15% annual returns were dubious, and their lack of insurance from financial institutions means one’s entire investment could be lost at any moment.
But I now get it—DeFi makes these transparent financial tools available to anyone, anywhere, with zero administrative overhead.
The fact that I now manage my late aunt’s collection of blockchain lending contracts which I can’t get out of for another 6 months has nothing to do with it.
3. Web 3.0
Web 3.0 is the idea that the current internet we use will be supplanted by one backed by blockchains. I may have previously drunkenly shouted at members of the San Francisco Ethereum Meetup that blockchains are glorified slow databases and that they’d be better off learning JavaScript over a weekend than pursuing their chosen career.
But I now see the big picture—Web 3.0 will free us of the Facebook data monopoly and give users control over their own data.
The fact that I succeeded my aunt as CEO of her $200m venture-backed “Geocities but Web 3.0” company which needs to raise another round of funding before this hype cycle ends or we have to declare bankruptcy has nothing to do with it.
4. Protection Against Central Banks Printing Money
Unlike other centralized currencies, blockchains are not controlled by any one entity, and the flow of money can not be controlled. I may have previously written an impassioned letter to the chairman of the Federal Reserve pleading that this will enable terrorism, lose our ability to sanction bad actors on the international stage, and weaken American influence on global world order.
Now I get it, American fiscal hegemony is destined to end regardless, and it’s better we move to a decentralized secure currency now than move to a state-backed currency of a nation adversary.
The fact that my aunt was sanctioned by the US for crimes related to the 2016 election and that by accepting her money I may no longer legally perform transactions with US Dollars has nothing to do with it.
5. Decentralized, No Owner
Bitcoin is not affiliated with any single owner, and its original creator is anonymous, known only by the pseudonym “Satoshi Nakamoto”. I previously argued that supplying a pseudonymous entity with $60 billion is a dangerous situation and could lead to untold terrors if they turn out to have impure intentions.
I now understand that Satoshi Nakamoto’s hands-off anonymity removes him as a single point of failure for the network, meaning it will last long before he’s gone.
This has nothing to do with the fact that my late aunt’s living will revealed she and Satoshi Nakamoto dated in grad school, and that he once paid for his half of a cab ride with 1,000 bitcoins, and that I now own more bitcoin than I’d make in 100 lifetimes and if the price drops I’m ruined.