RE: Blockchain investments and the new problem asset for conventional VCs
Good thoughts here and I agree with you on traditional VC. I think we're just seeing a move away from traditional VC as a whole. Traditional VC was/is so valuable, not only b/c of portfolio access and expertise, but a simplified investment process.
VC firms can provide access to capital in larger sums that would require a lot more fundraising, paperwork, and hassle to do from individual investors. However, this is exactly what the blockchain solves, for the most part. Therefore, the value of a VC firm is highly diminished.
VC firms will have to pivot more towards the advisory and expertise side and be much more comfortable operating more like a hedge fund. In short, I just don't think the traditional way capital is managed and invested is going to apply and it's going to take a whole new breed of investment firms to support crypto.
That's really hard to see right now, but I think this is right on. VCs threw themselves onto blockchain companies in the traditional way, the only way they know how. I think what will occur shortly is that they will realize the traditional model doesn't apply or at least is not effective at giving them returns. The natural next step is cryptoasset investments. Then, and if something like SteemIt proves "self-bootstrapping" works, then this will be an uh oh to VCs everywhere.