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What is special about Multicoin Capital investment fund ?

What is special about Multicoin Capital investment fund ?

Today, I will share with you about the investment Thesis of one of the very famous and long-standing venture capital funds in this market, Multicoin Capital. This fund has outperformed the market for the past 3 years.

Main Thesis of Multicoin Capital

“Crypto will make the biggest move in wealth over a period of time in the history of the Internet.”

Why now? And why Crypto?

According to Multicoin, here are 3 main reasons:

  • Consumers are losing faith in companies, corporations and governments.
  • The Crypto Network can open up new avenues for the global economy, restructure the economic activities, create mechanisms to encourage people to use new programming systems.
  • “Software is eating finance”, including basic definitions of money.

That is Multicoin’s general picture of the economy as a whole and why they choose to invest in Crypto.

So what will the future of Crypto look like? What will Crypto do to change the economy?

Here are 3 macro views on the future of the Crypto market according to Multicoin Capital.

3 Thesis macro investment for Crypto

Open Finance Renaissance

By making all kinds of assets store of value – stocks, bonds, real estate, currencies, commodities and more – into interoperable, programmable, and composable assets on a distributed ledger, providing easier access to capital for everyone, and increasing efficiency in the use of funds.

And just as the rise of market capitalization over the past 100 years has resulted in an astonishing rate of asset growth, “Open Finance”, with its transparency and fairness, will upgrade that capital. , paving the way for new services and applications in the future, creating greater value.

The Web3 Vision

While Thesis on “Open Finance” is based on the idea of ​​Programmable Money, Web3 Thesis is based on the concept of Data Autonomy.

The vision of the Web3 foundation (founding fund Polkadot and Kusama) is to create a network that allows people to decide their own data, which is in stark contrast to the present, when the tech giants, Banks, credits own customer data.

When consumers own their own data, data monopoly will collapse, those giants will lose their main competitive advantage, thereby opening a new wave for other companies.

The second and third effects of this will be profound, allowing the creation of new businesses and services that we cannot yet envision.

Global currency

Many people think that if it is possible to create a “Common Currency of the World”, it is like “Digitalized Gold”. However, Multicoin believes that only one gold market is still too narrow, and that will fundamentally reduce investment opportunities.

The “global currency” should be a larger, broader, and more utility set, representing a much larger market than gold.

Multicoin expects that the first currency will function and operate like “Digital Gold”, but then develop and absorb into the digitization of many other assets.

This market will grow and expand to $7,000 Billion – the same market capitalization of gold today, in the same way that Uber has grown in the taxies market.

Read more: Crypto Investment By Sector: Investment thesis

Summary

It can be seen that the Multicoin fund believes in a “flat future”, where the whole world can use the same currency, everyone can easily access the cash flow in the economy, and at the same time, everyone have the right to decide on their own data, instead of putting their trust in companies, large corporations and governments.

That is the reason why they choose to invest in Crypto, which is the solid Thesis that helps them win the market for many years in a row.

For me, while translating Multicoin’s Thesis, I also learned many things. In the long term, its investment Thesis cannot be seen as far as Multicoin.

But in the short term, I firmly believe that DeFi will definitely develop, because DeFi creates surplus value for the economy, helping to reduce intermediaries. And a market is creating “abnormal profit”, surely many other parties will participate and the market will explode -> develop -> return to “normal profit”.

How about you, What is your investment Thesis in terms of both long and short term? How has it helped you in the past period? Please share and discuss below.

 

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