The necessity of the cryptocurrency industry? Outliers founder: If the price of Bitcoin drops to zero, worthless companies will be washed out.

Poseidon Ho, founder of the venture capital firm Outliers Fund and a well-known poker player, recently proposed a bold hypothesis on his personal Facebook: if the price of Bitcoin were to suddenly drop to zero, companies that are completely worthless or whose value is entirely dependent on Bitcoin would be wiped out, which might prove whether there is a necessity for the Crypto Assets industry. However, Denny Yang, founder of another venture capital firm Comma3 Ventures, disagreed with this, even arguing that it is tantamount to shorting one's own business for those in the industry.

Outliers founder Poseidon Ho: If Bitcoin drops to zero, companies with no value will be washed out.

Poseidon Ho stated: “To prove the necessity of the cryptocurrency industry, I hope to witness the price of Bitcoin drop to zero ( in my lifetime, even if just for a few days, before it regains a price ). On the day Bitcoin drops to zero, companies that have no value or are entirely dependent on Bitcoin will be completely washed out, and many perceptions within the industry will be overturned and rebuilt. Those researchers, developers, entrepreneurs, and investors who are still willing to continuously invest in Blockchain & Crypto afterwards have independent perceptions and are valuable to this industry.”

A statement points out the reality of the encryption industry: are these market participants focused on the value of the blockchain or its price? Many companies themselves have no value, only based on the consensus that Bitcoin will continue to rise. If Bitcoin suddenly drops to zero, when the tide goes out, we will know who is not wearing pants.

Comma3 founder Denny Yang: disagrees with this idea.

On the other hand, Denny Yang, founder of the venture capital firm Comma3 Ventures, has a different opinion. He stated, “I completely don't understand what you're saying. If you are a practitioner, then this kind of thing is shorting your own business, which is a symptom of falling into a disconnection in thinking. I do not agree with this kind of thinking.”

Poseidon Ho replied: “Why does Bitcoin dropping to zero equal shorting your own business? If the value of the entire venture capital is based on the belief that Bitcoin will continue to rise or not fall, then it means that those who are touting the value of blockchain/Crypto Assets every day are just blowing a narrative bubble. If Bitcoin ( falls for any reason ), and there are other blockchains/Crypto Assets that can replace its infrastructure and applications, wouldn't that prove the sustainability and scalability of this industry?”

Denny Yang further stated: “That's completely not the case, but I don't want to discuss such matters here. I can only say that your understanding of the Crypto Assets industry is very different from ours, and there is only one core idea: Bitcoin is the ultimate manifestation of decentralized value. If you don't believe Bitcoin has value, then you are far from the true core values of web3. In fact, I don't need to convince you; I just don't want to see everyone being misled.”

Poseidon Ho explained that he has never felt that Bitcoin is worthless. Perhaps using the phrase “Bitcoin drop to zero” is an exaggeration, but he wants to convey that there are many valuable things in this industry, far beyond just Bitcoin. If the entire industry cannot withstand a single day of Bitcoin's price crash, then there are indeed many so-called core values that need to be overturned.

He said: “Being overthrown is not a bad thing. Which technological industry's paradigm shift does not overthrow the universal understanding of the previous generation? After the internet bubble burst, it welcomed more internet infrastructure and applications. I admire those who are still willing to invest continuously after that. I wrote this article simply out of feeling: I realize that many people in the crypto space contribute to this industry solely by holding Bitcoin, arbitraging, and when they make money, they want to pull more people in to buy Bitcoin or Bitcoin reserve concept stocks.”

Crypto as a speculative and quick-money approach is not a good thing for young people.

Later, Poseidon Ho posted again to share his views. He said: “I rarely attend events in the coin circle now because the proportion of people who are solely profit-driven is increasing, and there is less and less genuine high-tech understanding. It seems that as long as the speakers on stage have made a fortune from a certain currency and achieved financial freedom, the audience treats their words as gospel. Everyone is betting on whether they can hear some information asymmetry and favorable trading signals at these conferences.”

And said: “However, there are still researchers, developers, entrepreneurs, and investors who are investing in and innovating decentralized technologies. That is why I say that when the prices of certain coins plummet (which means their own interests are being taken away), those who are still willing to invest continuously truly believe in the future of decentralization and place their strongly held vision above their own interests.”

In the end, he believes that having Crypto as a means of speculation/making quick money is not a good thing for the younger generation of this era. Many other industries require funding, talent, and attention, but they do not have stories of becoming rich overnight; their investment and return are at most linearly positively correlated, and even endless investment may not yield significant breakthroughs or returns. However, it is precisely these challenging research topics that have the potential to expand or advance human civilization.

Is there a need for the existence of the Crypto Assets industry? Outliers founder: If the Bitcoin price drops to zero, worthless companies will be washed out. Originally appeared in Chain News ABMedia.