Tagomi & Enabling Speculation

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Qiao Wang - March 7, 2019

To date, speculation has been (by far) the most important application of crypto.

We don’t harp on this much, because the word “speculation” tends to carry a negative connotation. But the truth is that speculation has gotten us to where we are today.

You could argue that early speculators (and HODLers) have been crypto’s unsung heroes. Without the 1000x bubbles and the 90% crashes, there’s no way crypto would have gotten the attention it has from mainstream media. Without the liquidity early speculators contributed (maybe inadvertently), there is no way institutional investors would even be thinking about this emergent asset class.

Liquidity is what gives value to crypto as a store of value and a medium of exchange. This tenet inspires a thesis I’ve held for many years and will likely continue to hold for the next decade or so:

Investing in “Boring Businesses” that enable speculation is one of the few areas of crypto that are worth investing in right now.