Does the world of cryptocurrencies truly have a product-market fit (PMF)? Critics often argue that crypto largely creates solutions for non-existent problems. However, Santiago Santos, a seed investor, asserts that crypto does indeed possess a crucial, unique PMF. He compares the current landscape of crypto to early-stage e-commerce, emphasizing that we should not dismiss the industry just because we may not like certain aspects or find it too complicated in its current form.
Crypto has managed to overcome a significant obstacle in the internet era by allowing money to move seamlessly, much like information. This attribute is demonstrated in the creation of digital property, such as Non-Fungible Tokens (NFTs). Such assets have allowed artists and creators to sell their work with verifiable scarcity to their customers. While it may be true that the current crypto experience is far from perfect, it is important to recognize the long-term potential of this technology.
Drawing parallels between crypto and e-commerce, Santos points out that Amazon, for instance, started as a simple online bookstore. Over time, it transformed into a global giant in various sectors. Similarly, although not everyone may find something they like within crypto today, in five to ten years, their perspectives might change.
Despite the challenges and complexities involved in getting into crypto, many individuals continue to jump through hoops to join this space. Santos sees this dedication as a great indication of PMF and advises those interested in the field to pay attention to hobbyists who are passionate about it.
While it is essential to be skeptical while navigating the world of cryptocurrencies, it is also crucial to understand the significance of crypto fitting within broader transformational trends that have been shaping the world for the past two decades. By doing so, we can fully appreciate the positive impact that crypto innovations may have in the future.
In conclusion, crypto has managed to solve a significant issue in the digital world by offering secure and seamless monetary transactions. By looking at the broader picture, we can recognize the strong product-market fit that crypto provides and its potential to reshape the world in various ways. So, while we must maintain a healthy degree of skepticism, we should also be open to the possibilities and long-term impact that the crypto world might offer.
Source: Blockworks
