Ƀrock Pierce

Founder at Blockchain Capital & Cofounder and Head of Strategy for EOS

THIS CHAT HAPPENED ON June 29, 2017

Discussion

Brock Pierce@brock_pierce
Join me to discuss everything going on with crypto currency and blockchains on topics such as Venture Capital in the ecosystem, ICOs, and EOS.
Carmen@macclabs · travel writer, cofounder
How long before we all get paid in crypto currency? When do you think it will take over the existing monetary markets?
Brock Pierce@brock_pierce
@macclabs I think we are far away from that. Crypto currency doesn't function as a good currency today and may not for a long time. I could see a crypto becoming the largest currency in the world in a meta sense that you would convert to local money in the same way you convert USD to Euros when traveling so Bitcoin to USD when you're in the US for example.
Carmen@macclabs · travel writer, cofounder
@brock_pierce Thank you for your insight, that makes sense.
Brock Pierce@brock_pierce
Good morning everyone. Glad to be here and looking forward to answering all of your questions.
Emily Hodgins@ems_hodge · Operations @ Product Hunt
Hi Brock thanks for joining us today. What are your immediate predictions for the future of crypto currencies?
Brock Pierce@brock_pierce
@ems_hodge That ICOs will continue to disrupt the venture capital. At the moment it is for endemic blockchain related deals. I predict that bleeding over into non-blockchain deals.
Nick Abouzeid@nickabouzeid · Words at Product Hunt ✌️
@ems_hodge @brock_pierce As a follow up, what role do you see AngelList's CoinList playing in this process? Do you think private ICOs for only accredited investors have a role in the space?
Brock Pierce@brock_pierce
@ems_hodge @nickabouzeid I see crowdfunding platforms like AngelList having been the first major leap in the democratization of venture capital taking it from a business for the financial elite (pensions, endowments, high net worth family offices, etc.) to everyone. ICOs are just a continuation of that same trend. The accredited investor limitation is driven by regulatory and compliance obligations.
Ben Tossell@bentossell · newCo
What interesting areas have not yet been explored within the crypto space?
Brock Pierce@brock_pierce
@bentossell Most of them. The opportunities are endless. It's also early in the sectors development. The protocol layers aren't where they need to be long term for scaling so most of my focus is there rather than at the application layer.
Nick Abouzeid@nickabouzeid · Words at Product Hunt ✌️
How do you think GDAX should have managed last week's ethereum flash crash?
Brock Pierce@brock_pierce
@nickabouzeid It looks like Coinbase is attempting to remedy the situation as best they can, which is the right thing to do when possible.
Josh Scolnic@jscolnic
What is EOS going to do with all this money?
Brock Pierce@brock_pierce
@jscolnic For a protocol to succeed you have to build a large ecosystem. I don't see any limit in sight in terms of the amount of resources one can use to do that. Ethereum for example raised $18M in their ICO and lost half due to the price of bitcoin declining. They've accomplished a ton with $9M. Imagine what they could have done with more.
Milan Koch@milankoch1
When doing Due Diligence on upcoming ICO's, what factors do you take into consideration the most and how is DD on ICO's different than traditional DD in VC?
Brock Pierce@brock_pierce
@milankoch The diligence from venture to buying into ICOs is not all that different. At the end of the day we invest in teams first and foremost.
Milan Koch@milankoch1
@brock_pierce thanks a lot!
Sachin@ze_rusty · Head of Design, Kalpah
How long before the crypto bubble burts?
Michael John McClain@mjmcclain · Co-founder of Heilig VRFX
@ze_rusty Why do you think it's a bubble?
Brock Pierce@brock_pierce
@ze_rusty I don't envision a burst. The market will continue to run up and correct as we go in and out of hype cycles. Over the long run I continue to be incredibly bullish. The current market cap of the sector is just over $100B. During the internet bubble of 1999/2000 the internet stocks hit $7 trillion. At that time it was largely a US driven market with a small but growing user base with limited revenues with investors betting on the future potential of the tech. Looks a lot like the blockchain today so there is clearly a ton of room for growth.
Sachin@ze_rusty · Head of Design, Kalpah
@brock_pierce and plus the dot com was limited to United states. Blockchain is getting international attention.
Ben Tossell@bentossell · newCo
If you wanted to run an ICO, what would you focus on?
Brock Pierce@brock_pierce
@bentossell ICOs can vary substantially from deal to deal. Main thing to focus on is legal compliance if you believe there is a market for your ICO today.
Ryan Shook@ryanshook · Creative Director
Is the difference with this wave of IPOs (ICOs) really blockchain or is the blockchain just one part of a larger "trust economy" that is being built?
Brock Pierce@brock_pierce
@ryanshook It's the beginning of the larger "trust economy" trend. The current market is the industry eating it's own dog food before disrupting every other market.
Ryan Shook@ryanshook · Creative Director
@brock_pierce as a follow-up, it's easy to see blockchain disrupting digital industries but how can blockchain improve physical goods and services where records can be manipulated before they are ever entered into a ledger? ie, the record may be immutable but is the record accurate?
Nick Abouzeid@nickabouzeid · Words at Product Hunt ✌️
What steps has the EOS team taken to avoid having the EOS Tokens classified as securities under US security law?
Brock Pierce@brock_pierce
@nickabouzeid Please refer to the white paper at EOS.io. You may also want to look up the BCAP financing.
Nick Abouzeid@nickabouzeid · Words at Product Hunt ✌️
@brock_pierce Will do, thanks! 🙌
Lucas Hanson@teamsynctools · I like to make stuff
What, in your opinion, is the greatest blockchain opportunity in enterprise networking?
Brock Pierce@brock_pierce
@teamsynctools The blockchain, like the internet before it, is going to impact everything so the opportunities are endless. Most of my time is not spent on the "if" a sector will be impacted so much as when.
Lucas Hanson@teamsynctools · I like to make stuff
@brock_pierce ok, thank you, there are a lot of tough problems to solve in that space and some, e.g. Extranet, could be better suited for blockchain.
Brock Pierce@brock_pierce
@teamsynctools Private blockchains will likely serve a role in the future just like we have internets and intranets.
Jake Crump@jakecrump · Community Team with Product Hunt
What should the average person know about crypto currency and blockchains that they might not already be aware of?
Brock Pierce@brock_pierce
@jakecrump The rabbit hole runs deep. I recommend everyone start by buying $10 of bitcoin and ethereum as a way of getting started. The average person won't need to understand crypto currency or blockchains for the tech to be successful. Many of the best applications are going to be ones where the average person doesn't even realize they are using it. Think of it as the back-end or plumbing of the products. Steemit is great example of a decentralized application that is indistinguishable from it's centralized counter parts. We need more of this for decentralized products to succeed with average consumers.
Michael John McClain@mjmcclain · Co-founder of Heilig VRFX
Do you think we (U.S.) should or will implement Blockchain in the voting process?
Brock Pierce@brock_pierce
@mjmcclain Absolutely. Transparency and public audibility will serve the public interest.
David Orban@davidorban · Managing Partner, netsoc.vc
Should VCs concentrate on seeds and bridges until a project is ready for the ICO, and leverage the fast liquidity? Is the A round dead?
Brock Pierce@brock_pierce
@davidorban I see a role for early stage VCs in the future even if the current fund structure goes away. The model I envision is one where the pre seed or seed rounds are done as they are currently until a project as gotten past a proof of concept before doing an ICO. I see fewer deals in the future raising on white papers. The early stage VCs should be derisking the deal and providing the resources to run a better ICO. A rounds may still happen. It's the B rounds and later than probably go away entirely.
Neil Stanley@nstanley · Entrepreneur and Investor
With the increase in value of Bitcoin meaning meaning holdings are becoming very valuable, where do you recommend storing them for the best security?
Brock Pierce@brock_pierce
@nstanley Lots of great solutions and more coming. I suggest people begin with easy to use platforms like Coinbase. As your skill levels improve along with your holdings I recommend using hardware wallets like Ledger or Trezor and institutional wallets like BitGo. These are just a couple of examples and there are many other good solutions out there. Do your research and keep learning.
Neil Stanley@nstanley · Entrepreneur and Investor
@brock_pierce thank you
Seth Weinstein@seth_weinstein · Mad Scientist
Hey Brock, Huge fan. Paul R. Says Hi. I'd love to know your opinion of factors that identify outliers in the overall crypto space? What do I mean is what things to look for in the technology that promotes its overall longevity?
Brock Pierce@brock_pierce
@seth_weinstein I look for things solving big problems that I believe have long term potential. Lots to say on the subject. Will try to come back for a better response.
Neil Stanley@nstanley · Entrepreneur and Investor
With the high volume of ICO issuance we are often faced with buy decisions based on relatively limited information. How would you recommend assessing an ICO for it's potential?
Brock Pierce@brock_pierce
@nstanley Sit out of the ICO if you don't feel informed enough. You can always buy later. I am happy to pay a higher price in many instances when I have better information and a deal has been derisked.
David Orban@davidorban · Managing Partner, netsoc.vc
Are tokens the new default if we want to think about economic transactions? Are there pieces of the digital economy that won't be tokenized?
Brock Pierce@brock_pierce
@davidorban Everything will be decentralized and tokenized eventually.