Warning: Tech is About to Be Monumentally Richer

The tech industry, lorded over by venture capitalists, is defined most by an unending appetite for growth, capture and hoarding. This can be seen everywhere from Moore’s Law, to the industry focus on “10x” as fundamental metic and goal, to the exponential growth of data collection that we have seen just in the past few years. Technology is the bleeding edge of capitalism, which requires constant growth to survive. In tech we see the most pure manifestation of capitalism in the modern era. 

Lost in the financial turmoil that seemingly surrounds the industry at this time, is the fact that the tech industry is entering a new phase of hyper growth as the next tech bubble actually begins, now manifest in the rapid proliferation of AI apps in all sectors, the beginning of a bull market in crypto and increasing penetration of defense spend. This will be turbocharged as the new form factor of virtual reality actually starts shipping into the workplace, consumer, government and military markets. (I won’t repeat here, but this article’s worth a look if you are interested in more of the mechanics behind the bubble and why I say we are beginning the bubble now.) 

Like in previous bubbles, we are going to see a massive and rapid expansion of venture capital wealth and power, with the primary goal of establishing sovereignty for the venture capital class, free of obligations to any country or society. So the first major dangerous thing we are going to see is a venture capital force that is increasingly immune to any kind of regulation or democratic process. We are already seeing this happen as tech pulls its money out of the traditional financial system (SVB), moving it onto VC-controlled financial infrastructure, and major VC cornerstone companies like Coinbase announce their intention to set up shop outside of the US in order to avoid the regulatory system, SEC, they are already deeply in conflict with. 

Already, the direction of global tech is controlled by this tiny group of people who tick every box for even the most rigorous definitions of fascism. The VC space itself has been consolidating in the larger funds in the last several years, particularly concentrating in highly dangerous firms like a16z. This consolidation will only continue to accelerate, because tech’s new targets have a much higher entry cost than the “classic” software models: weapons production, hardware for worker automation and the metaverse, artificial intelligence and real estate, biomedicine. Other firms are just no longer viable in this model. The top top top firms are increasingly the only ones who have really any significant sway over the market, as I covered in this piece about how venture capitalists are fixing it. 

 Rather than moving to a more democratic model with the success of the industry, it is becoming more undemocratic at a stunning pace. We need to re-capture control of the technology industry from venture capitalists, who are solely setting the agenda, but the steps they are taking towards sovereignty and insularity, make that goal more improbable by the day, and more likely that this will end in extreme violence. 

The main thing I want to emphasize in this piece is that we are looking at a massive increasing in the amount of money that these sick fucks have. If you think they are criminally rich now, what is coming next is going to blow your mind. 

So where’s all this money going to come from? 

For one, tech has a number of fairly mature technology startups that it declined to IPO last year, which means there are a number of them that will be hitting the market at some point in the foreseeable future. This will generate big paydays for everyone as VCs are able to get their exits in some key areas like crypto, fintech and AI, that have been around for a number of years now just quietly growing and preparing. I do think that VC’s long term goal is to have their own blockchain stock market and have startups exit via that mechanism, so it is definitely possible that that is closer to realization than we think; either way, we’re looking at a number of exits that are just waiting on VC timing to go at the most advantageous hour. That means major cash infusion for them and their LPs. 

VCs have also been raising more funding than ever to spend on startups, and that’s something I expect to see accelerating especially as tech, again on the bleeding edge of capitalism, becomes a way to “exit” the decaying American financial system and investors desperately look to other avenues to feed their ludicrous greed. As more and more money flows into VC from increasingly diversified sources, we’re seeing that consolidation happening yet further, and their ability to fund more and more technology projects that have a very high up-front cost accelerating significantly  — particularly in the medical space and in the hardware space and in weapons production. 

Speaking of weapons, the aggressive military build-out by a16z, Founder’s Fund and Lux Capital puts them right in the stream of defense spend, going head to head with traditional weapons companies like Lockheed and Raytheon. As war mongering spreads particularly in regards to “deterrence” of the China/Russia “threat”, tech is perfectly positioned to start slurping up more and more of the 2023 1.73 trillion DoD spend, providing yet another major revenue source. The American government is also far from the only buyer for VC weapons tech. Anduril, the crown jewel of the a16z + Founder’s Fund portfolio, is already deployed in active combat zones and even a number of the AI companies are being developed for specifically military use cases including AI pilots for warplanes. A post coming soon about the large, LIVE NOW application of AI in the military space; a terrifying reality that is being hidden under the fluff and glamour of distracting trinkets like ChatGPT. 

But the most concerning aspect of all, by far, is crypto and the amount of money that it is going to be printing for venture capitalists and their technology nation. 

 Crypto is going to produce a yet-unknown level of wealth for them, and on multiple dimensions. This is probably the angle that most concerns me because we have the least insight into, specifically, how much crypto is owned by venture capitalists, by tech elite, by tech executives, by the tech worker body itself, which is 80% white and Asian men and those numbers are slated to rise with anyone outside of those demographics being quietly purged, hidden within mass layoffs. 

Remember that Bitcoin debuted in 2009, which means that there has been 14 years during which primarily people in tech have been socking away huge amounts of Bitcoin and other crypto at extremely low prices compared to today, and certainly extremely low prices compared to where this thing is going. A study at the end of 2021 found that the top 10,000 individual investors owned 1/3 of the Bitcoin in circulation. This has likely only accelerated along with additional consolidation across the technology space and the massive upward transfer of wealth into tech that occurred during the pandemic. 

Now compare that to the wealth distribution in America, where 1% of the people own about 1/3 of the money… but that 1% is 3.3 *million* people, whereas in crypto, the 1/3 of wealth is going to just 10,000 people. 

So you’re looking at a crypto financial ecosystem where the wealth in that ecosystem is SIGNIFICANTLY more concentrated than what we see in the American financial system. So that’s extraordinarily scary for all of us and every attempt should be made to stop venture capital from realizing the return on its unspeakable corruption and market fixing. 

And I cannot emphasize enough that the primary holders are tech players in some way; that is the vast majority of adopters throughout this time. Tech is the primary beneficiary of crypto, which is how it was designed to be. 

In fact, it is my current belief that “Satoshi” is a collection of VC interests wrapped around the evolution of the economic system, and likely tied directly to the PayPal Mafia and a16z. 1 million bitcoin are sitting in the Satoshi wallet, and at the top value we’ve seen BTC hit so far, that’s $73 billion. And that’s only at the current price, which I expect is going to absolutely sky rocket in the coming years. If Bitcoin reaches 1 million / per at any point, as has been speculated recently, that is one trillion dollars. And that’s just one endpoint, and just one data point to consider when we start to think about the potential wealth that could come out of just Bitcoin alone. 

So, we just don’t fucking know. I would guess that we are at least looking at some of the first tech trillionaires coming out of this situation. Fuck.

I’ll try to spend more time trying to do some basic financial projections of what the wealth capture could look like in the next years, but frankly that’s a bit out of my wheelhouse. I think the important thing for a basic understanding is that a.) these fascist tech fucks bought up absolute shit loads of crypto over the past 14 years at prices as low as *checks notes* 10 cents b.) the price of crypto is going up and will continue to c.) we have no idea what we are looking at as far as tech wealth over the foreseeable future as crypto reaches a new stage of maturation… via the entire financial infrastructure that has been built around it by venture capitalists. 

Which is yet another way that venture capitalists are going to profit off of crypto, which is not just by owning crypto but by owning the entire infrastructure around it — a16z being the forerunner — which is in itself generating returns in the forms of banks, cryptosecurity startups, crypto financial products, exchanges and so on. 

We are looking at a level of wealth concentration that is almost unprecedented in this scenario and we are looking at an entire fascist industry and a large amount of its “workers” who are going to be swimming in a MASSIVE increase of money that none of us are prepared for. The disproportionate wealth that VCs and tech have accumulated *to date* is already destroying us, wrecking havoc on cities and countries, destroying lives and plunging workers into poverty, and causing mass scale psychological damage that will someday come to be known as one of the biggest human rights violations in history, purposefully and knowingly causing global-scale mental distress. 

 The world already looks at tech and its supervillains as absurd, offensive and inhumane wealth, but this is only the beginning as the VC dream that is crypto is realized. 

In other pieces I have discussed how the amount of data and penetration into global cities is also going to accelerate wildly, but I will leave you with this: 

We think the tech industry is bad now. But what are we going to be dealing with when all of this goes 10x, 20x or 100x up? What are we going to be dealing with when the tech industry is multiplications of the size it is now, the wealth it is now, and the concentration of money and power of now? 

This will be the sovereign venture capital state.