The Dangers of Decentralization

Centralization in Nature

We can look to nature to understand the way the world is wired. When we observe the natural laws followed by plants and animals, we can apply those laws to more exotic human creations (like crypto investing).

The argument between centralization and decentralization, as captured in the “Rap Battle” from Hamilton.

Decentralized In Name Only (DINO)

The crypto zealots have taken Satoshi’s ideas to the extreme: they believe that complete decentralization is the goal. They forget that complete decentralization is more often known as a “mess.”

This is not an org chart.

Investor Takeaways

First, understand the tradeoff that comes with decentralization: it’s harder to coordinate.



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