Wow. Assuming he put in just $10,000 (and I imagine it was probably more than that), 6000x return would be 60 million dollars.
Any early companies out there right now seem like it could potentially offer even a 10th of that in ~5-10 years?
Any early companies out there right now seem like it could potentially offer even a 10th of that in ~5-10 years?
Paul stumbled on an absolute goldmine by just giving a bunch of promising companies with good founders 10k in exchange for a decent portion of equity and then some of these companies being worth billions.
NOw you know what those homes and are so expensive in Palo Also and elsehwre, You got of these guys making fortunes, and that money tricked down everywhere.
But remember that unlike the stock market, investing in a VC means locking up your money for 10 years. Slightly beating the market is not worth the liquidity loss, you have to do a good bit better.
YC is a massive outlier and they have insanely good deal flow because of their brand.
You won't find a better group of truly qualified, highly accomplished people giving advice to startups, holding talks for cohorts, etc. in any other accelerator anywhere, period.
I know in the past though that, at a minimum, the amount of money was different. I'd say it's still safe to assume they own 7% though - so more than a billion USD on paper, not bad.
Selection bias. There are a heap of other companies that tried the YC model, and failed. It isn’t “just” good founders and 10k.
In practice, cashing out billions of dollars worth of stocks is easier than cashing out billions of dollars worth of crypto.
Another option is, now that it's becoming clear to people that Bitcoin is here to stay, you can just borrow against it to spend (avoid taxes, hold on to the upside). Case in point, this person/group borrowed 300M$ with about 1B$ net worth[1].
It's also kind of unclear what the interest is from that page. edit: apparently it's 8.5% https://mkr.tools/governance/stabilityfee
There are also centralized versions with blockfi if you prefer traditional loans.
If it dips below 150% the contract is automatically liquidated. Should give ample time for the creditor to get their money back.
And one more thing, it's not technically an interest rate, it's a stability fee (which btw, gets burned, used to go back to stakers, but they removed that).
This is misleading. The markets definitely move, they just don't show a massive spike in the charts.
Are people just banking on the assumption that it's going to go up higher than how much they have to pay back over time? What if that stops being true 5 years from now somehow, like another coin becomes dominant? Not saying it's likely, I do think Bitcoin will probably still be doing well in 5 years, but I'm not certain of it.
I haven't looked at Coinbase stock liquidity, but I would be it is worse as BTC liquidity.
it's not like the btc must be sold on an exchange
You phrase it like he made a mistake and lost out on a huge profit but the ROI is exactly the same so really don't understand your comment.