I am hopeful. Thatโs not an easy sentence for me to write here at the end of 2020. Even as the new year approaches, thereโs still plenty to be concerned about.
A close friendโs dad has taken a turn for the worse (not COVID related โ and itโs weird that I feel compelled to specify that). I have no idea how to help him or his family right now.
Coronavirus cases are surging. My parents โ who fall into the at risk category โ are increasingly homebound as a result.
Like much of America, I didnโt visit my parents for Thanksgiving. And like much of America, I wonโt be visiting them for Christmas or the New Year.
New unemployment claims unexpectedly jumped to 885,000 earlier this month. More than 5.5 million Americans are unemployed right now.
Yet, Iโm hopeful โ and not just because COVID-19 vaccines are on the way.
Iโm hopeful because startups have shown us theyโre not afraid of the moment. This year, equity crowdfunding deal flow was the highest Iโve ever seen it. And the quality of the startups raising capital was off the charts.
Iโm hopeful because startups are challenging big problems โ like delivering medical treatments at the cellular level, detecting cancer early and creating the worldโs first saliva test for autism.
Theyโre working on systemic problems like securing biometric data. Theyโre fixing widespread market problems like the shortage of truckers.
And theyโre being cleverly opportunistic by improving how we buy wine online.
Startups are showing us that the future is bright. Whether itโs high-end tequila or helping buildings use energy more efficiently, startups are on the case. Theyโre doing the heavy lifting now. And theyโre poised to make early investors a handsome return on their investments.
But startups arenโt the answer to every problem we face. So much about our current financial systems is broken. The payments system doesnโt work for small businesses. Cross-border payments are inefficient and expensive. Our national debt is too high. And we have to keep interest rates at close to zero because we canโt afford the interest payments (and we need to keep the stock market going).
But Iโm still hopeful.
This is why bitcoin was invented. This is why the crypto ecosystem was built. Our world needs sound money. It needs an alternative to gold. It needs new financial instruments for the future.
Bitcoin is the beginning of that future. Itโs currently trading around $22,800. And on Sunday, it cracked the $24,000 mark to set a new all-time high.
DeFi (decentralized finance) is another segment of the crypto universe that took off this year. DeFi is building the financial infrastructure for the future. Itโs too early to say which projects or ideas will survive right now. But watching as the next financial infrastructure is constructed in real time is exhilarating.
So yes, Iโm hopeful. Startups make me hopeful. So does bitcoin, other cryptocurrencies and DeFi. Vaccines make me hopeful too.
The future is being built right now. And I canโt wait to see what it looks like โ or to invest in it.