Original by Cat Brother, Wu Said Blockchain, Wu Said Real, December 9, 2024, 09:01, Shandong.
Editor | Cat Brother, Wu Said Blockchain.
On December 6, the incoming U.S. President Trump will appoint David Sacks as the White House Director of Artificial Intelligence and Cryptocurrency, making him the new 'Crypto Czar' of the White House.
David Sacks is a South African-American entrepreneur and author, who was the Chief Operating Officer during PayPal's founding period and has publicly expressed support for Bitcoin and cryptocurrencies multiple times. He believes Bitcoin is a tool against traditional financial systems and centralization, particularly highlighting its value in the context of global economic uncertainty and currency devaluation. He thinks DeFi and blockchain technology can make the financial system more transparent. David Sacks has invested in several cryptocurrency projects through his venture capital firm Craft Ventures, including: dYdX, Lightning Labs, River Financial, Kresus, Set Protocol, FOLD, Harbor, Handshake, Voltage, Galy, Lumina, Rare Bits.
Additionally, David Sacks is a staunch supporter of Solana. In 2018, David Sacks announced an investment in the crypto venture firm Multicoin on behalf of Craft Ventures. Multicoin was one of the early investors in Solana, leading a $20 million financing round in July 2019. In December 2023, David Sacks clarified that he did not sell Solana after the FTX incident and tweeted, 'One of the dumbest attacks against me this year is saying I sold Solana (SOL) tokens to retail. If that were true, they should have made a fortune by now. Congrats to all SOL holders.' Two years ago, David Sacks also delved into Solana's prospects in his podcast (All-In Podcast). He mentioned that many elites in Silicon Valley have high hopes for Solana, believing it could ultimately surpass Ethereum. Even if this vision does not fully materialize, Solana is fully capable of becoming a top player in the crypto space.
Community member EliNagarBrr also compiled his 10 statements regarding his stance on Bitcoin, which received a retweet from him; original link:
https://x.com/EliNagarBrr/status/1865412084697071953
1. 'I’m buying'
As @chamath explained, Bitcoin has the potential to become the next internet—the currency internet. I want to buy.
—— David Sacks stated on May 31, 2013.
Since 2013, Sacks has been a Bitcoin HODLer, having started buying when the price of Bitcoin was only $130. Today, the price of Bitcoin has increased by 76,000%.
2. The transformative nature of Bitcoin lies in its potential as an unbacked currency.
In an interview on May 23, 2022 (from the 46th to the 49th minute), David Sacks expressed this view; interview link:
https://www.youtube.com/watch?v=l7zxA5oUZDw
David Sacks stated that his personal interest in Bitcoin dates back to 2012 when he first purchased Bitcoin. Although my primary investment focus is not cryptocurrency, we recognized the cryptocurrency space was evolving between 2017 and 2018. We predicted it would transition from a consumer-centric, retail-oriented phenomenon to an institutional asset class. To seize this opportunity, we invested in critical infrastructure, including institutional custody through BitGo, and became a seed investor in the crypto-focused hedge fund Multicoin Capital. Our core belief is that as this asset class matures, it will require specialized fund managers. While my expertise lies in SaaS investments, I saw opportunities to support teams focused on the crypto space, and this strategy has yielded significant results.
The transformative nature of Bitcoin lies in its potential as an unbacked currency. Historically, fiat currencies face significant risks when managed by governments, particularly regarding currency devaluation. This is especially true for reserve currencies like the dollar, where the temptation to print money to cover fiscal deficits and repay debts is immense. Currently, the U.S. debt-to-GDP ratio has exceeded 130%, meaning that the total debt exceeds the nation's annual economic output—making repayment nearly impossible without devaluing the currency. Historically, currency devaluation has been a common means of resolving excessive debt.
Bitcoin offers an alternative. It is not governed by a central authority but operates on principles of cryptography and immutable code. Its fixed total supply of 21 million coins eliminates the inflation risk caused by arbitrary monetary policy. Trust in Bitcoin does not rely on confidence in the government, but rather on trust in the security and integrity of its underlying technology. As long as the system remains unbreached, its monetary policy will not change.
As individuals and institutions become increasingly aware of the systemic vulnerabilities in fiat currency, Bitcoin's appeal as a reliable currency may continue to grow. Its journey is not over, but its foundational commitments to financial sovereignty and anti-inflation resonate with many.
3. Satoshi Nakamoto should become a billionaire.
The first Bitcoin miner owns 1 million Bitcoins, now worth $1 billion. I hope this person is Satoshi Nakamoto because he/she/they should be a billionaire.
—— David Sacks stated on November 29, 2013.
4. He is working on a fictional feature film about Satoshi Nakamoto.
Sacks said: 'This movie is like watching (The Social Network) without knowing who the Zuckerberg character is.'
5. Sacks understands Bitcoin as a highly liquid and non-seizable store of value.
In the same interview on May 23, 2022 (from the 50th to the 52nd minute), David Sacks stated: The concept of Bitcoin as a global reserve currency is quite appealing. Some people, like Balaji Srinivasan, believe that the three currencies currently with global potential are: the dollar, the yuan, and Bitcoin. Each currency represents a different geopolitical or technological paradigm. The dollar symbolizes America's financial empire, the yuan is linked to China's rise, while Bitcoin represents a decentralized and cryptography-driven future.
To make Bitcoin a global reserve currency, significant systemic change may be required, such as the collapse of the dollar or other catastrophic economic events. However, even without such upheavals, Bitcoin can play an important role. In countries facing oppressive regimes, export controls, or economic instability, Bitcoin provides a lifeline—a portable, censorship-resistant store of value, referred to as the 'new gold' or 'digital diamonds.' Its appeal lies in its ability to secure wealth independently of any country.
6. He believes Bitcoin has the potential to separate currency from the state.
In the 52nd to 55th minute of the interview, David Sacks stated:
The grander vision of Bitcoin is to achieve a separation of currency from state control. Historically, similar moments of transformation have changed societal structures, such as the separation of church and state. Similarly, the separation of currency from state may have equally profound implications, giving rise to a currency system independent of government intervention. This vision may sound like science fiction today, but Bitcoin offers a glimpse of that future.
The timeline for this transition is uncertain—it may take decades or even centuries. The speculative nature of Bitcoin's potential role in the global economy also makes it difficult to assign it a clear value. This uncertainty is also why some people, including myself, are cautious about active speculation. However, Bitcoin's potential lies in its ability to challenge traditional paradigms, even if its ultimate trajectory remains unknown.
7. He is not a Bitcoin maximalist.
In the 55th to 58th minute of the interview, the host asked: Are you still buying Bitcoin? David Sacks replied:
I hold a certain amount of Bitcoin, but my approach is to 'let it be.' I have experienced many market cycles—both dramatic rises and sharp declines—so I tend to allocate a portion of my net worth to Bitcoin and leave it untouched. For me, this is a long-term bet: while the risk of Bitcoin possibly going to zero always exists, it could also evolve into a dominant currency over the next few decades. If that happens, I would regret not getting in earlier. Therefore, I have basically completed my investment and let it sit quietly without any active trading or attempts to time the market.
I would not classify myself as a Bitcoin maximalist. While I believe Bitcoin has the strongest case among all cryptocurrencies—a fact demonstrated by its price performance and relative stability—I also recognize the value of the broader innovation sparked by Bitcoin.
For example, the blockchain technology that Bitcoin relies on has led to other significant advancements, particularly in the area of smart contracts. Platforms like Ethereum and Solana provide smart contract capabilities, with their native tokens used to purchase computational power as 'gas.' These platforms support various decentralized applications, particularly in the decentralized finance (DeFi) space, which has already reached a certain scale.
Despite the potential of blockchain technology, I remain skeptical about its applicability beyond certain use cases. Many problems that projects attempt to solve are actually more easily addressed through centralized databases. For instance, financial applications like trading, derivatives, and settlements are indeed reasonable on the blockchain because they can benefit from the transparency and programmability that blockchain provides. DeFi contracts are open, auditable, and transparent, contrasting sharply with the opacity of Wall Street's OTC derivatives.
However, the broader application prospects of blockchain remain uncertain. Although DeFi has shown real potential, whether blockchain can support meaningful innovation in other areas remains unknown. Much of the enthusiasm in the field seems misguided or overly optimistic, believing that blockchain can disrupt industries where centralized systems have been performing well.
Currently, I believe Bitcoin is the most robust and credible among all cryptocurrencies, especially in its role as a potential store of value. However, I also recognize the value of other blockchain-based innovations, particularly in the areas of smart contracts and financial systems. This field is still evolving, and the full scope of its applications has yet to be fully revealed. Whether these platforms will extend beyond DeFi into broader use cases or remain in a narrower scope will ultimately determine the long-term impact of blockchain technology.
8. Through his venture capital firm Craft Ventures, Sacks has invested in several Bitcoin-related companies, such as Lightning Labs, Fold, Bitwise, and Bitgo.
Congratulations to starkness, roasbeef, and lightning for launching the beta of the Lightning protocol. This is the most important scaling solution for Bitcoin and one of the most significant projects in the entire crypto industry. I am pleased to be an investor!
—— David Sacks stated on March 16, 2018,
9. After PayPal, he thought he would never be interested in the payments space again, but the emergence of Bitcoin changed everything. 'Bitcoin is realizing PayPal's original vision of creating a new world currency.'
This is an article published on August 14, 2017, original link:
https://www.cnbc.com/2017/08/14/david-sacks-cryptocurrency-interview.html
At that time, his views included:
● He believes cryptocurrencies are becoming the foundation of Web 3.0. Blockchain technology has become a platform for developers, especially Ethereum, supporting the creation of decentralized applications and tokens while providing a new avenue for innovative financing through initial coin offerings (ICOs).
● Howard Marks of Oaktree stated that 'Bitcoin is not real,' to which Sacks countered that the 'reality' of Bitcoin, like software, relies on trust and network effects. Bitcoin guarantees scarcity through cryptography and economic incentives, and this trust can sometimes be more reliable than government credit.
● Sacks believes the current technical development of cryptocurrencies is akin to 1995, while market valuations are close to the 1999 internet bubble era. He anticipates a correction, with regulatory policy as a potential primary trigger.
● He hopes this correction will be more like a 'soft landing' rather than a 'nuclear winter' after the internet bubble, noting that the irrational phenomena of ICO valuations are the focus of market rectification.
● Sacks points out that protocol coins in ICOs have practical use in the software ecosystem and should not be viewed as securities. In contrast, asset coins will be securities and need to be issued correctly, but this area is full of potential.
● He believes that in the future, almost any illiquid asset could be blockchainized and tokenized, which would enhance market liquidity and price discovery efficiency. Even liquid assets like stocks might shift to this platform due to the advantages of blockchain technology.
● Crypto capitalism poses a long-term threat to venture capitalism. Many startups can finance through ICOs without relying on traditional VC funding.
● He predicts that limited partners' (LPs) rights in VC will also be tokenized, enhancing funding efficiency. Although top VCs may stick to traditional models, tokenization will become a competitive advantage for other VCs.
10. David Sacks stated that Bitcoin is the invention of digital scarcity.
So-called critics, like Charlie Munger and others, are indeed excellent investors but are not technology experts. That is their blind spot. What they do not understand about this technology is that Bitcoin is the first digital asset in history that cannot be copied infinitely.
Think about it: a song, a photo, or a video—anything digital can be copied infinitely. This is one of the meanings of 'digitalization,' right? So how can there be a digital currency that cannot be copied infinitely? Clearly, if it can be copied at will, its value would be completely destroyed.
The genius of Bitcoin lies in the fact that every transaction is recorded in a decentralized ledger—the blockchain. Over the past decade, no one has been able to counterfeit Bitcoin, create replicas, or achieve double spending. This is the unique value of Bitcoin.