The Crypto Flywheel Keeps Spinning!
The post The Crypto Flywheel Keeps Spinning! appeared on BitcoinEthereumNews.com. In today’s Crypto for Advisors newsletter, Alex Tapscott, explains the flywheel effect, and it’s impact on the crypto markets. Then, Natalie Hirsch from Polymath answers questions about questions about investing in public crypto companies in Ask an Expert. Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors: register for the upcoming Minneapolis event on September 18th. The Crypto Flywheel Keeps Spinning! These days it’s become fashionable to describe how crypto is driving a “flywheel effect” in the market, and that is a reason to be bullish. But what is the flywheel effect, exactly? The term was popularized by Jim Collins in his 2001 book “From Good to Great.” Collins asked us to imagine someone pushing a giant wheel. With the first push, the wheel budges only slightly, but after hundreds of pushes, it begins to gain momentum — every new push becomes easier and accelerates the wheel further. Nobody can say for sure which push helped it to achieve that momentum, because it is the product of all the small pushes together. The lesson for business leaders is this: Do the small stuff right consistently and you’ll be rewarded in the long run. Today, the term has evolved into something else. Rather than describing only the impact of sound operational decision-making, flywheel effects now describe how positive feedback loops impact systems, like marketplaces and whole industries. Here are some of the ways that dynamic is at play in crypto and public markets: Because of the demand from investors for access to crypto assets, digital asset treasury companies (aka DATs) like MicroStrategy can issue shares at a premium to their underlying net asset value, buy bitcoin and other assets, and grow NAV per share. This can drive the underlying asset higher and induce more people to buy shares…
The post The Crypto Flywheel Keeps Spinning! appeared on BitcoinEthereumNews.com.
In today’s Crypto for Advisors newsletter, Alex Tapscott, explains the flywheel effect, and it’s impact on the crypto markets. Then, Natalie Hirsch from Polymath answers questions about questions about investing in public crypto companies in Ask an Expert. Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors: register for the upcoming Minneapolis event on September 18th. The Crypto Flywheel Keeps Spinning! These days it’s become fashionable to describe how crypto is driving a “flywheel effect” in the market, and that is a reason to be bullish. But what is the flywheel effect, exactly? The term was popularized by Jim Collins in his 2001 book “From Good to Great.” Collins asked us to imagine someone pushing a giant wheel. With the first push, the wheel budges only slightly, but after hundreds of pushes, it begins to gain momentum — every new push becomes easier and accelerates the wheel further. Nobody can say for sure which push helped it to achieve that momentum, because it is the product of all the small pushes together. The lesson for business leaders is this: Do the small stuff right consistently and you’ll be rewarded in the long run. Today, the term has evolved into something else. Rather than describing only the impact of sound operational decision-making, flywheel effects now describe how positive feedback loops impact systems, like marketplaces and whole industries. Here are some of the ways that dynamic is at play in crypto and public markets: Because of the demand from investors for access to crypto assets, digital asset treasury companies (aka DATs) like MicroStrategy can issue shares at a premium to their underlying net asset value, buy bitcoin and other assets, and grow NAV per share. This can drive the underlying asset higher and induce more people to buy shares…
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