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Mind Of Mav

A Misunderstanding Of The Micro

Over the past few months I’ve been studying systems, mathematics and physics with increasing interest and its helped me see parallels that explain a lot of phenomena on-going in crypto at the moment that I thought I’d try to articulate here.

“Written in 1945, Hayek correctly pointed out a possibly worrisome trend of generating an increasingly complex and interconnected structures of information, without controlling or understanding their individual elements.”

Friedrich Hayek portrait.jpg

We’re almost 80 years since the prediction and Hayek’s prediction is on-point. The pandemic exposed huge gaps in our understandings of global supply chains, international monetary policy, global health and countless more systems. The current monetary macro uncertainties are a lot of that complexity trying to find equilibrium.

Now, bringing this back to blockchains. I view blockchains as frontier future societies that have capable for enormously great positive change. However, just like Hayek pointed out in 1945, we’ve already unable to understand individual elements and therefore reason about the global interconnected system in inaccurate ways.

A lot of narratives that get peddled on Crypto Twitter are basically bullshit that fall apart if you ask 3 reasonable questions about their core assumptions. However, asking these questions can be very difficult if you don’t have a solid understanding of the components that make them. Structurally this is hard especially given how tribal and non-interdisciplinary majority of crypto players can be.

Most people aspire to be maintain just one perspective such as investor, builder, <bags> maximalists, writer, governor etc. Without a magnitude of perspectives to look at a problem you can become blind to how the system operates as a global.

The Merge is a great example of this since it requires the perspective of:

Consensus mechanism developers

Application developers

Miners

Potential validators

End users

Educators/community

Regulators

However, when certain perspectives aren’t considered and the event in question is a very large one… chaos ensues. Crypto is going to struggle to make changes if those with the most influence have the most narrow perspectives.

Another example is liquidity mining, it’s taken us almost 2-3 years to fully understand how all the various individual elements involved can create very suboptimal outcomes for everyone involved. However, at the start everyone thought liquidity mining was a great idea. Imagine how much more we could have innovated in the past 2-3 years as an industry if we just spent some more time thinking and questioning narratives?

Crypto is a complex system, but it is a fully digital & transparent one which means we should be able to move a lot quicker than complex systems in the real world.

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)

Add your vote to the V3 Portfolio (Phase 3) by clicking here.

View V3 Portfolio (Phase 2) by clicking here.

View V3 Portfolio (Phase 1) by clicking here.

Read the V3 Portfolio guide by clicking here.

What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
Pillars of ReadySetCrypto. We aim to Capitalise on the collective knowledge and experience of the RSC
community & build model portfolios containing the premier companies and projects
in the industry and manage risk allocation suitable for as many people as
possible.

The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

Our Current Allocation As Of Phase Three:

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The ReadySetCrypto "Top Ten Crypto" Community Portfolio (V4)

Add your vote to the V4 Portfolio by clicking here.

Read about building Crypto Portfolio Diversity by clicking here.

What is the goal of this portfolio? 

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.
This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.
To give an update on the position, each one listed in low to high relative risk:
SoV/money == BTC, DCR
Platforms == ETH, XTZ
Private Money == XMR / ZEC / ZEN
DeFi == MKR / SNX and stablecoins
It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

Current Top 10 Rankings:

 

 

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