Diversification (aka How To Survive A Crash)

I was emailing with my friend Harry this past week and we started talking about crypto and the inevitability of a massive crash. I am certain the big crash will happen. I don’t know when it will happen and I think it may be some time before it does. But better safe than sorry. So I’m going to write some thoughts about how to survive it.

I told Harry my personal story of having 90% of our net worth go up in smoke in the dot com bubble and crash.

The only reason it was not 100% was that we owned two significant pieces of real estate that were about 10% of our net worth before the crash and became our entire net worth after the crash.

We were not diversified. We had all of our money in venture capital and internet stocks and had ridden that wave all the

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Feature Friday: Coinbase Vaults

Vaults are the crypto equivalent of a savings account.

If you have crypto assets that you don’t plan to spend/send frequently, you can put them in vault and get increased security.

Coinbase has had a vault offering for Bitcoin for the past three years and they have now launched the same vault product for ETH and Litecoin.

It appears as an additional account in your Coinbase accounts screen:

With the vault, you get a 48 withdrawal period (so nobody can move funds out of your account for 48 hours) and multiple signers on a withdrawal.

You can have three signers and require all three to sign a withdrawal or you can set up five and require three of five to sign a withdrawal.

I like to keep some crypto assets in my wallet and the rest in a vault. It is more secure.

If you have crypto assets at Coinbase,

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Happy New Year

Today is Rosh Hashanah, the Jewish New Year.

I’d like to wish a happy new year to all my Jewish friends and colleagues and readers.

I don’t personally identify as any particular religion.

I was brought up Catholic, married into and raised our children Jewish, and I appreciate both of these religions.

I also feel great connectivity to Buddhism and have many wonderful Muslim friends.

There are bits of all of these belief systems that I connect to and appreciate.

But mostly I am a fan of spirituality and belief systems.

Being human is a strange, wonderful, and, at times, unnerving experience.

Spirituality and belief systems help us with our humanity and make our time on earth a bit easier.

If we could have that without all of the other stuff religion brings, that would be a wonderful thing.

Today is a day for my Judaism. I will attend services with

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Mexico City

Mexico City is an amazing place. The Gotham Gal and I were there around this time last year.

The people, the culture, the energy are all great in Mexico City. It feels like a place on the move where good things are happening.

So I was upset to hear about the devastating earthquake last night.

We have had so many natural disasters in the last month and I understand that we may all be fatigued from giving to all of these needy causes.

But I took some time this morning to give and thought I’d share with all of you where I sent some funds in case you want to do the same.

  1. Salma Hayek’s Crowdrise Campaign to UNICEF’s on the ground relief efforts: I donated $1000.
  2. Bitso’s (Mexico’s largest crypto exchange) Campaign to benefit Red Cross and Brigada de Rescate Topos Tlaltelolco A.C.: I donated 2 ETH.

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Why Amazon Should Come To NYC

USA Today reported that NYC is working on a proposal to encourage Amazon to locate its second headquarters “HQ2” in NYC.

I can’t imagine a better place for HQ2 than NYC.

Here are ten reasons why Amazon should stop thinking about any other place and just pick NYC:

  1. NYC is headquarters to many global companies. It has the transportation systems, building stock, and talent base that companies need and desire for their headquarters.
  2. It has 8.5mm people, enough to satisfy Amazon’s insatiable appetite for talent.
  3. It is home to the entrepreneurs, creators, innovators, and big ideas that Amazon is looking to surround itself with.
  4. It is home to the second largest tech sector in the US.
  5. NYC is committed to teaching computer science to all of the 1.1mm students in its school system by 2025 and is already 1/3 of the way there.
  6. NYC/NYS has embarked on massive
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Worry

I remember when I was in my early 20s and just starting out in the venture capital business, I came across an old wall street saying that “a market climbs a wall of worry.” I didn’t understand it and that made me want to. I read a bit about the saying and came to understand that bull markets require an uneasy feeling.

Worrying is a fundamental characteristic of most investors I know. Greed and fear are the two opposing elements of market forces.

I read a board deck this weekend from a portfolio company that is absolutely crushing it and forwarded it to our team at USV with a short memo outlining all of the risks I am worried about. Not a single enthusiastic comment was in that email.

Why is that? Because although we invest on “what could go right”, we manage our investments on “what might go

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