In the final episode of the 20 vc awards week, the host celebrates the most downloaded Founders Friday episode of 2017 featuring Brian Armstrong, CEO of Coinbase, a leading platform for cryptocurrency transactions. Armstrong details his journey from software engineer at Airbnb to embracing the potential of Bitcoin after reading Satoshi Nakamoto's research paper, overcoming skepticism and self-doubt with support from Y Combinator. He discusses the distinctions between Bitcoin and Ethereum, the scalability and governance hurdles facing cryptocurrencies, and the transformative potential of ICOs (Initial Coin Offerings) on traditional venture capital. Armstrong envisions a future where Coinbase expands its portfolio to build the blocks of an open financial system, highlighting the importance of regulatory clarity and the evolution of smart contracts for sustainability. The host also endorses HR platform Namely and Wi-Fi system Eero, thanking listeners for their support.
"Welcome back to this third and final episode of this very special 20 vc awards week. For the last two episodes, we celebrated the most downloaded vc shows with guests like Peter Fenton at Benchmark and Kirsten Green at Forerunner."
The quote signifies the success and popularity of the 20 VC Awards Week, highlighting the significance of the guests featured in prior episodes.
"Brian Armstrong, founder and CEO at Coinbase, has the most downloaded founder episode of 2017."
This quote announces Brian Armstrong's episode as the most downloaded, emphasizing his influence in the tech and cryptocurrency industry.
"And I want to say again, a huge thank you to Jonathan Downey at Airware for the intro to Brian today, without which this episode would not have been possible."
The quote acknowledges the contribution of Jonathan Downey in making the interview with Brian Armstrong possible, emphasizing the importance of networking and introductions in the venture community.
"And I remember having this feeling come over me at that time that this was the most important thing I'd read in the past five years."
This quote captures the moment of realization for Armstrong when he understood the potential impact of bitcoin, which was a pivotal point in his career.
"But the thing that actually gave me the confidence to go start a company was actually applying to Y Combinator."
The quote highlights the crucial role Y Combinator played in validating Armstrong's idea and giving him the confidence to start Coinbase, underscoring the importance of external validation for entrepreneurs.
"So there's really three things to know about ethereum versus bitcoin. The first is there's a difference in scalability, so ethereum is more scalable."
This quote introduces the first key difference between bitcoin and ethereum, which is scalability, setting the stage for a detailed comparison of the two cryptocurrencies.
"Yeah, so scalable. I mean, ethereum seems to be on a path to scale better."
The quote underscores Ethereum's focus on scalability and its potential advantages over bitcoin in terms of transaction capacity, which is critical for the future of cryptocurrencies as a payment system.
"Ethereum seems to be on a path to do that, and that's exciting because it'll open up some new opportunities there."
This quote highlights the potential for Ethereum to scale and create new opportunities within the digital currency space by handling a larger volume of transactions.
"You could essentially write any type of software you can imagine."
This quote underscores the flexibility and power of Ethereum's programming language, which allows for a wide range of software to be written and executed on the blockchain.
"You're going to build a body of knowledge around it and the professionalism will develop around it."
The quote suggests that the quality assurance of smart contracts will improve as the industry matures and develops a more standardized body of knowledge.
"There's definitely a different culture between the groups and the Ethereum community."
This quote points to the distinct cultural divide between the Bitcoin and Ethereum communities, which influences their respective approaches and priorities.
"I think the long term trend for icos is very positive, or token sales."
The quote indicates a belief in the positive future of ICOs or token sales, despite anticipating short-term corrections.
"One is regulatory clarity... The second area I'd probably bring up is this idea about the smart contracts and how rigorous people are about looking for bugs."
This quote identifies two critical areas for the sustainability of ICOs: regulatory clarity and the rigorous examination of smart contracts for bugs.
"A lot of these people are... people who have recently become millionaires by investing in digital currency."
The quote suggests that many ICO investors are not unsophisticated, given their success in digital currency investments, which may impact the urgency of regulatory measures.
"Like, I've been shocked just to see you might have 17,000 people all over the world in 1 minute will invest 30 or $50 million into one of these icos."
The quote highlights the speaker's surprise at the rapid and vast fundraising capability of ICOs compared to traditional methods.
"I do think that is pretty disruptive for venture capital."
This quote summarizes the speaker's belief that blockchain and ICOs have the potential to significantly change the venture capital industry.
"So I'm going to raise money from people who are my early fans, but I also want to bring in a team of advisors or board members to help me surround myself with people who fill in the skill sets that I don't have."
The quote explains a potential future scenario where entrepreneurs raise funds from supporters and separately engage advisors for their expertise.
"Actually, the biggest challenge in scaling digital currencies right now is not a technical one. I think it's a political one or a governance one, if you want to call it that."
This quote identifies governance issues as the primary obstacle to scaling digital currencies, rather than technical limitations.
"I think there's nothing preventing digital currency from getting to visa level."
The quote expresses confidence that digital currencies can scale to handle a transaction volume comparable to or greater than that of traditional payment systems.
"Which is better to be in a great marriage than to be single, but it's better to be single than to be in a bad marriage."
This quote relays advice given to the speaker about the importance of choosing the right co-founder or partner in business, drawing an analogy to marriage.
"Find the right person to build the company with. And I did find someone great to build a company with Fred Ursum after Y Combinator. But if you're not finding someone that you're going to create a great marriage with, then it's better to be single."
This quote emphasizes the significance of selecting a co-founder with whom one can have a strong, synergistic relationship, akin to a successful marriage, highlighting the choice made by the speaker to partner with Fred Ehrsam post-Y Combinator.
"I'm definitely a student of a lot of. I do a lot of reading in that area and I'm not sure. I mean, I do have some mentors, like, for example, Fred Wilson at Union Square Ventures. I talk with him every month and I've had a couple different executive coaches that have had a really big impact on my life."
Brian Armstrong indicates his commitment to learning and growth, mentioning that he is a lifelong student who reads extensively and has mentors, such as Fred Wilson, with whom he communicates regularly, as well as executive coaches who have significantly influenced his life.
"Actually, Dan Romero put out a medium post just in the last few weeks with a bunch of digital currency reading. I thought that was a very good list."
Brian Armstrong suggests Dan Romero's Medium post as a starting point for those interested in learning about digital currencies, indicating that it is a well-curated list of readings.
"A few of the ones that come to mind are, number one, their hiring process. I learned a lot from that. Just having a really high know. They always used to say, raise the bar with every hire."
This quote reflects the hiring philosophy that Brian Armstrong admired and learned from during his time at Airbnb, which he then applied to Coinbase, focusing on continuously improving the quality of hires.
"Coinbase, our mission is to create an open financial system for the world. And we're excited about that because it'll create more, know there'll be more good ideas tried."
Brian Armstrong outlines Coinbase's mission statement and expresses enthusiasm for the potential impact of creating an open financial system, which aligns with the company's long-term vision and the initiatives they are pursuing.