Editor: Cat Brother
On December 6, US President-elect 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. He was the COO of PayPal during its founding period and has publicly expressed his support for Bitcoin and cryptocurrencies on many occasions. He believes that Bitcoin is a tool to fight against the traditional financial system and centralization, especially in the context of global economic uncertainty and currency depreciation. He believes that DeFi and blockchain technology can make the financial system more transparent. David Sacks has invested in multiple cryptocurrency projects through his venture capital fund Craft Ventures, including: dYdX, Lightning Labs, River Financial, Kresus, Set Protocol, FOLD, Harbor, Handshake, Voltage, Galy, Lumina, Rare Bits.
Additionally, David Sacks is a strong supporter of Solana. In 2018, David Sacks announced an investment in the crypto venture capital firm Multicoin on behalf of Craft Ventures. Multicoin was one of Solana’s early investors, leading a $20 million funding round for Solana in July 2019. In December 2023, David Sacks clarified that he had not sold Solana after the FTX incident and tweeted, 'One of the dumbest attacks against me this year is saying I dumped Solana (SOL) tokens on retail. If that were true, they should have made a fortune by now. Congratulations to all SOL holders.' Two years ago, David Sacks also deeply explored 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 eventually surpass Ethereum. Even if this vision does not fully materialize, Solana is entirely capable of becoming the third in crypto.
Community member EliNagarBrr also organized ten statements regarding his position on Bitcoin and received a retweet from him.
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, starting to buy when Bitcoin's price 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 unofficial currency.
In an interview on May 23, 2022 (from 46 minutes to 49 minutes), David Sacks expressed this view.
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 on cryptocurrencies, we recognized that the crypto space was evolving between 2017 and 2018. We predicted it would transition from a consumer-centric, retail-driven phenomenon to an institutional asset class. To seize this opportunity, we invested in critical infrastructure, including institutional custody provided by BitGo, and became seed investors in the crypto-focused hedge fund Multicoin Capital. Our core thesis is that as this asset class matures, it will require professional fund managers. While my expertise is in SaaS investments, I saw the opportunity 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 unofficial currency. Historically, fiat currencies face significant risks when managed by governments, particularly 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 the total debt surpasses the annual economic output of the nation — making it nearly impossible to repay without devaluing the currency. Historically, currency devaluation has been a common means to address excessive debt.
Bitcoin offers an alternative. It is not governed by a central authority but operates based on principles of cryptography and immutable code. Its fixed total supply of 21 million eliminates the inflation risk caused by arbitrary monetary policies. Trust in Bitcoin does not rely on confidence in governments, but rather on trust in the security and integrity of its underlying technology. As long as the system remains unbroken, its monetary policy will not change. As individuals and institutions grow increasingly aware of the systemic vulnerabilities of fiat currencies, 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 be a billionaire.
The first Bitcoin miner has 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 making a fictional feature film about Satoshi Nakamoto.
Sacks says, 'This movie is like watching The Social Network but not knowing who the Zuckerberg character is.'
5. Sacks understands the practicality of Bitcoin as a highly liquid and non-seizable store of value.
In the same interview on May 23, 2022 (from 50 minutes to 52 minutes), 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, and Bitcoin represents a decentralized, cryptography-driven future.
To make Bitcoin a global reserve currency, significant systemic changes may be required, such as the collapse of the dollar or other catastrophic economic events. However, even without such upheaval, Bitcoin can still play an important role. In countries facing high-pressure 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 diamond.' Its appeal lies in its ability to secure wealth independently of any nation.
6. He believes Bitcoin has the potential to achieve the separation of money from state control.
In the interview from 52 minutes to 55 minutes, David Sacks stated:
The grander vision of Bitcoin is to achieve separation of money from state control. Historically, similar transformative moments have changed social structures, such as the separation of church and state. Likewise, the separation of money from state may have equally profound implications, creating a currency system independent of government intervention. This notion may sound like science fiction today, but Bitcoin offers a glimpse of this future.
The timeline for this transformation remains uncertain — it could take decades or even centuries. The speculative nature of Bitcoin's potential role in the global economy also makes it difficult to assign a clear value. This uncertainty is also why some people, including myself, are cautious about active speculation. Nevertheless, the potential of Bitcoin lies in its ability to challenge traditional paradigms, even if its ultimate trajectory remains unknown.
7. He is not a Bitcoin maximalist.
In the interview from 55 minutes to 58 minutes, 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 let it sit. For me, this is a long-term bet: while there is always the risk that Bitcoin could go to zero, it also has the potential to evolve into a dominant currency in the coming decades. If that happens, I would regret not having participated earlier. Therefore, I have essentially made my investment and let it sit quietly without any active trading or attempts to time the market.
I do not classify myself as a Bitcoin maximalist. While I believe that Bitcoin has the strongest reasons for support among all cryptocurrencies — as evidenced by its price performance and relative stability — I also recognize the value of the broader innovations sparked by Bitcoin.
For example, the blockchain technology that Bitcoin relies on has already spurred other important advancements, particularly in the field of smart contracts. Platforms like Ethereum and Solana offer smart contract functionality, with their native tokens used as 'fuel' (gas) to purchase computational power. These platforms support various decentralized applications, especially in the decentralized finance (DeFi) sector, which has reached a certain scale.
Although blockchain technology is full of potential, I remain skeptical about its applicability outside 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 settlement make sense on the blockchain because they benefit from the transparency and programmability that blockchain provides. DeFi contracts are open, auditable, and transparent, in stark contrast to the opaque off-exchange derivatives of Wall Street.
However, the broader application prospects of blockchain remain uncertain. While DeFi has demonstrated real potential, whether blockchain can support meaningful innovations in other areas remains to be seen. Much of the enthusiasm in this field seems misguided or overly optimistic, believing that blockchain can disrupt industries where centralized systems have already operated effectively.
Currently, I believe Bitcoin is the most robust and credible of all cryptocurrencies, especially in its role as a potential store of value. However, I also recognize other blockchain-based innovations, particularly in the fields of smart contracts and financial systems. This space is still evolving, and the full scope of its applications has yet to fully emerge. Whether these platforms will go beyond DeFi and expand into broader use cases or remain within 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 on launching the beta version 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. Excited to be an investor! — David Sacks stated on March 16, 2018.
9. After PayPal, he thought he would never be interested in the payment space again, but the emergence of Bitcoin changed everything. 'Bitcoin is realizing the original vision of PayPal, which is to create a new world currency.'
This is an article published on August 14, 2017.
His views at that time included:
He believes that cryptocurrencies are becoming the foundation of Web 3.0. Blockchain technology has become a platform for developers, especially Ethereum, providing support for the creation of decentralized applications and tokens while serving as a new avenue for innovative financing through initial coin offerings (ICOs).
In response to Howard Marks of Oaktree saying 'Bitcoin is not real,' Sacks countered that Bitcoin's 'reality' is akin to software, relying on trust and network effects. Bitcoin guarantees scarcity through cryptography and economic incentives, which can sometimes be more reliable than government credit.
Sacks believes that the current technological development of cryptocurrencies is akin to 1995, while market valuations are close to those of the 1999 dot-com bubble. He anticipates a correction, with regulatory policies being a major trigger.
He hopes this correction will resemble a 'soft landing' rather than a 'nuclear winter' after the internet bubble, pointing out that the irrational phenomenon of ICO valuations is the focus of market rectification.
Sacks pointed out that protocol coins in ICOs have practical uses within software ecosystems and should not be viewed as securities. Meanwhile, asset coins will be securities that need to be issued correctly, but this area is full of potential.
He believes that almost any non-liquid asset could be blockchainized and tokenized in the future, which would enhance market liquidity and price discovery efficiency. Even liquid assets like stocks could shift to this platform due to the advantages of blockchain technology.
Crypto capitalism poses a long-term threat to venture capitalism. Many startups can fundraise through ICOs without needing traditional VC funding.
He predicts that the limited partners (LPs) in VC will also be tokenized, enhancing funding efficiency. While top VC firms may cling to traditional models, tokenization will provide a competitive advantage for other VCs.
10. David Sacks states that Bitcoin is the invention of digital scarcity.
Those so-called critics, like Charlie Munger and others, are indeed very good investors, but they are not technical experts. That is their blind spot. And one point 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, like a song, a photo, or a video; anything digital can be copied infinitely. That is one of the meanings of 'digitization,' right? So how could you possibly have a digital currency that cannot be endlessly copied? Clearly, if it could 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. For over a decade, no one has been able to counterfeit Bitcoin, create replicas, or achieve double spending. This is the unique value of Bitcoin.
