How many crypto billionaires will there be? Rhys Lindmark, CEO of Roote, a nonprofit startup studio, answered this question at Consensus 2022 in Austin, Texas.
"By 2025, or 2030, 20% of all billionaires will be crypto billionaires,” he said, if bitcoin hits $200,000. Drilling down further, that would give the world 400 BTC billionaires and 200 ETH billionaires. That’s a huge jump from the current estimate of 19 crypto billionaires.
And just as technical innovation produces a new generation of wealthy elites, it also produces philanthropists. How the crypto generation spends its wealth may determine if humanity is able to adequately address its existential issues.
Web2 gave the world the Bill & Melinda Gates Foundation, Schmidt Futures and the Chan Zuckerberg Initiative – massive organizations that funnel money towards worthy causes. Web3, also a huge “wealth creation event,” is seeing its own class of philanthropic institutions like the FTX Future Fund, which pledged to donate $100 million this year.
For Lindmark, what separates Web2 from 3 is the idea of "SquadWealth,” or what happens when communities are able to align around emerging financial incentives. This matters for capital formation – like founding new projects – as well as philanthropy.
“Every round is a community round, with NFT degens and crypto VCs aping in together,” Lindmark said.
Not only that, but crypto seems to have an obsession with building “public goods,” he said. "These are a bunch of Web3 projects that are creating positive externalities, and they're all about giving back."
Crypto may also finally give us a “risk-adjusted investment ladder for public goods” similar to how venture capitalists value startups. "We will have seed, Series A, Series B, etc., but for nonprofit public goods,” he said.
What’s more? “Donors will be repaid through retroactive public goods funding," Lindmark said. CoinDesk spoke with Lindmark after his presentation on the Big Ideas stage to hear more about philanthropy in Web3. The conversation has been lightly edited for clarity and brevity.
Continue reading: https://www.coindesk.com/layer2/2022/06/22/how-web3-and-bitcoin-billionaires-will-revolutionize-philanthropy/
"By 2025, or 2030, 20% of all billionaires will be crypto billionaires,” he said, if bitcoin hits $200,000. Drilling down further, that would give the world 400 BTC billionaires and 200 ETH billionaires. That’s a huge jump from the current estimate of 19 crypto billionaires.
And just as technical innovation produces a new generation of wealthy elites, it also produces philanthropists. How the crypto generation spends its wealth may determine if humanity is able to adequately address its existential issues.
Web2 gave the world the Bill & Melinda Gates Foundation, Schmidt Futures and the Chan Zuckerberg Initiative – massive organizations that funnel money towards worthy causes. Web3, also a huge “wealth creation event,” is seeing its own class of philanthropic institutions like the FTX Future Fund, which pledged to donate $100 million this year.
For Lindmark, what separates Web2 from 3 is the idea of "SquadWealth,” or what happens when communities are able to align around emerging financial incentives. This matters for capital formation – like founding new projects – as well as philanthropy.
“Every round is a community round, with NFT degens and crypto VCs aping in together,” Lindmark said.
Not only that, but crypto seems to have an obsession with building “public goods,” he said. "These are a bunch of Web3 projects that are creating positive externalities, and they're all about giving back."
Crypto may also finally give us a “risk-adjusted investment ladder for public goods” similar to how venture capitalists value startups. "We will have seed, Series A, Series B, etc., but for nonprofit public goods,” he said.
What’s more? “Donors will be repaid through retroactive public goods funding," Lindmark said. CoinDesk spoke with Lindmark after his presentation on the Big Ideas stage to hear more about philanthropy in Web3. The conversation has been lightly edited for clarity and brevity.
Continue reading: https://www.coindesk.com/layer2/2022/06/22/how-web3-and-bitcoin-billionaires-will-revolutionize-philanthropy/
