There are great projects that made their way into the world due to VC funding but, then the VC’s wrecked it through their greed.

Every individual used to be a VC. Capital investment into businesses as opposed to debt is fundamental to growing a healthy society. The federal reserve was started in response to too much individual capital funding business ventures instead of debt. I am guessing your point about VCs relates the the specific, bastardized version of we see it today, but on a Bitcoin standard, business will be funded with capital, not debt. Venture capital providers, under sound money, will be critical to wealth creation.

Sorry @jack

I’m not sure I agree with this take. The current VC model is a fund model where the capital allocators raise a lot of capital with the promise that they’ll deliver returns within a ten year period. From there, the VC firm is required to allocate capital, regardless of the economic environment or companies on offer. In order to deliver those returns on that timeline, VC terms and conditions are often counter to the entrepreneur’s success…with the investor creating governance control on the venture regardless of their ability to operate a business. VC funds (and private equity funds) actually destroy productivity as they masquerade as value creators with LPs. Debt, on the other hand, is a priority claim on cashflows but they often don’t have as much governance influence on the venture. That’s good for a business because it leaves the residual claims on the equity of the business with the entrepreneur.

That is why I included the caveat “under its current bastardized version”. We have a manipulated cost of debt by 12 people in secret meetings. If we had hard money and a true free market cost of debt, the capital structure would shift to equity only over time.

I would expect decentralized debt markets will flourish. Even under a bitcoin standard if I was to buy a business or buy farm land, I would want to finance it with as much debt as I could raise and keep as much of the equity as I could. For financial upside AND for governance control of the venture.

You would want that, but the people financing you will not because they won’t be able to create the money out of thin air. They will have to have skin in the game and actually underwrite you. Fiat has poisoned how we look at financing, and there will be a total shift away from the current model of investing vs lending.

Why ?

Would say wrong