Kyle Samani: Why Bitcoin is Not a Hedge Against Inflation | 20VC #909

Kyle Samani is the Co-Founder and Managing Partner @ Multicoin Capital, one of the leading crypto native funds of the last decade with positions in Solana, FTX, Fractal, and Helium to name a few. As for Kyle, before moving to the world of venture and crypto, he founded Pristine, a health IT startup that raised more than $5M in VC, and was acquired by Upskill. ---------------------------------------- Timestamps: 00:00 Journey to founding Multicoin Capital 04:18 What does high performance mean to you? 05:28 What are tokens? 06:58 Tokens vs Equity investment 09:31 Helium protocol and how tokens can bootstrap network effects 15:32 Does crypto concentrate or distribute wealth? 16:47 Biggest challenges for distributing tokens? 18:32 Liquidity within tokens - a blessing or a curse? 20:10 How do you maintain a calm investor psychology? 21:07 How do you structure your firm? 25:01 How do you hire at Multicoin? 25:44 Is crypto collaborative? 27:15 Portfolio construction in crypto 29:37 How much do founders matter? 31:08 How do you predict markets? 33:33 The three different types of network effects 35:32 Do you have FOMO? 36:18 How do you allocate time? 38:34 Why are there crypto bull markets? 40:10 Will it be harder to raise funding? 41:17 Why is it hard to scale? 42:25 Do you feel pressure to bring deals to the table? 44:13 What do you learn from your winners and losers? 45:35 Are loss rates the same in crypto? 47:12 Last piece of content that blew your mind 47:29 Is Bitcoin a hedge against inflation? 48:05 Why does Solana beat Ethereum? 50:05 What do you wish you knew 5 years ago? 50:41 What would you like to change about the world of crypto? 51:15 Most recent publicly announced investment ---------------------------------------- In Today’s Episode With Kyle Samani We Discuss: 1.) The Founding of Multicoin Capital: How did Kyle make his way from a healthcare startup to founding Multicoin? What was his a-ha moment with the realization of the opportunity we have ahead of us in crypto? What does Kyle know now that he wishes he had known when he started Multicoin? 2.) Crypto Investing in 2022: Why does Kyle believe the crypt investing landscape is less collaborative than ever? What are the biggest challenges of token issuances today? How does the option of liquidity help and hurt Kyle’s investor psychology? Is Kyle concerned the volatility in the market will harm institutional investor sentiment for crypto? 3.) Constructing a Crypto Portfolio in 2022: Why does Kyle not believe in temporal diversification? Why does sector-centric company diversification suck? Why are the loss ratios in crypto so much lower than in traditional venture? Why does Kyle believe a no reserves model is optimal in crypto? 4.) Multicoin vs Traditional Venture Firms: Why does Kyle believe that every person over 10 people in a venture firm is a net negative towards the investment decision-making process? What do Kyle and Multicoin do reach the truth together? How do they aggressively use writing and word docs to progress their thoughts? Their discussions are “brutal”, how brutal can one be in a discussion on a deal? How does one make team members feel safe but also really push them for the truth and debate? ---------------------------------------- #KyleSamani #MulticoinCapital #20VC #HarryStebbings #cryptoinvestor #solana #ethereum #heliumnetwork #networkeffects #venturecapital #bitcoin #inflation #cryptocurrency