# Web3 Investing thesis

**Published by:** [Simon Chamorro](https://paragraph.com/@simonft/)
**Published on:** 2022-03-03
**URL:** https://paragraph.com/@simonft/web3-investing-thesis

## Content

Why invest in Crypto/Web3?We are witnessing the early days of the emergence of a global, open financial system, the impact of which will dwarf that of the internet itself.Web3/Crypto is an open source technology with deep-rooted network effects. Each cycle grows at ever faster speeds.It is zero-sum. Programmable on-chain money will kill friction-heavy financial services.Crypto/Web3 is a silent killer. It will take over in slow incremental changes.A crypto-native relay generation is taking over power and wealth in the next 5-10 years.New and existing asset classes will be ported natively onto the internet, with all value settling on blockchains.Permission-less access to non-sovereign stores of value, paired with powerful coordination and incentive mechanisms, is becoming the new norm.The industry has attracted only a few Entrepreneurs, Fortune 500 companies, Politicians, and Institutional money. The true tipping point is near.It is a revolution, an ideological paradigm shift. Hard to erase an idea from the minds of over 200 million people.How to invest and make decisions?The market can’t be timed. Long-term building & investment wins.Communities are king, technology is second, revenue is third. Focus on the former.Back early-stage ventures, publicly-traded protocols, and everything in between.Layer 1 will capture the most upside by allowing superimposed protocols.The market is decoupling from Bitcoin and Ethereum every cycle. Be nimble.Have a decision-making framework with aligned incentives.Find and focus on my Alpha; my area of expertise.New verticals offer asymmetric opportunities. Be ok missing some.Composable products & software > monolithsIn Web3 reputation travels with you.

## Publication Information

- [Simon Chamorro](https://paragraph.com/@simonft/): Publication homepage
- [All Posts](https://paragraph.com/@simonft/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@simonft): Subscribe to updates
- [Twitter](https://twitter.com/simonchamorro_): Follow on Twitter