How does Avichal, co-founder of Electric Capital, view the future of cryptocurrency?
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How does Avichal, co-founder of Electric Capital, view the future of cryptocurrency?
Artificial intelligence is the future, but artificial intelligence plus cryptocurrency has not yet arrived.
Navigating Web3 tides with focused insightsWritten by: Miles Deutscher
Translated by: TechFlow
Crypto analyst Miles Deutscher interviewed Avichal, co-founder of Electric Capital. In this 100-minute alpha-packed conversation, they discussed:
- The most undervalued areas in crypto
- The future of L1s and L2s
- AI and cryptocurrencies.
Below are 11 key takeaways summarized by Miles Deutscher.
1. We've made tremendous real progress over the past few years. Most of what we see today was purely theoretical before 2017—we’ve achieved incredible technological advancements in just a few years.
2. 2022 laid the foundation for DeFi. While the FTX collapse was painful, people now understand the dangers of centralization and leverage.
"I think it was a massive catalyst that set the stage for DeFi to truly function and go mainstream."
3. Crypto development is stronger than ever.
"Despite prices dropping 70–80%, creator activity has remained flat or even slightly increased. That’s remarkable. As for the $ETH ecosystem and EVM, they have real network effects."
4. Ethereum could become a digital nation alongside the U.S. and China.
If $ETH continues on its current path, it will become "a dollar-denominated, international decentralized settlement system." The key question now is, "What is the value of a digital nation?"
5. The future is multi-chain.
"We believe there will never be one chain to rule them all—this might be a natural law. The industry will host multiple coexisting ecosystems, the market will grow large enough, and each chain will find its own niche."
"If you look at pure network effect businesses like social networks, clearly Facebook and YouTube are huge, but TikTok, LinkedIn, Telegram, etc., can still survive. Everything can coexist—and the same is true in crypto, possibly at an even larger scale."
6. Cardano's technology might be good, but they were too slow to develop and reach market.
"The best product doesn't always win—you must enter the market correctly."
7. ZK technology is groundbreaking.
"Its inherent transformative potential will extend far beyond crypto and Web3."
"One of the truly interesting side effects of all crypto technologies is that we’re gaining better privacy tools through technological advancement—these will become ubiquitous."
8. Arbitrum and $OP are Optimistic rollups, yet they remain winners in the L2 race.
9. Artificial intelligence is the future, but AI + crypto hasn’t arrived yet.
"I think crypto + AI is still a bit early now, but in 10 years, they will eventually converge."
10. Adopt a long-term mindset toward markets.
Think about "what will rise in 5–10 years and become an undeniable giant. Instead of chasing new trends every two years, try riding the right mega-wave for the next decade."
11. NFTs are in a 'hibernation phase,' but they will eventually wake up.
"We're all primates—we need to signal to each other socially. All luxury goods are offline, but if you spend 12 hours a day online, why would you buy $1,000 shoes?"
"You can buy a $200,000 Patek Philippe… how many people will see that watch in its lifetime? Maybe 10,000? But if I buy a Punk for $200,000 and a million people see it, that means you're getting more attention per dollar spent."
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Miles Deutscher
