Crypto & The Great Migration

Random Walk takes flight

Welcome to Random Walk, the System2 newsletter. We have no particular agenda other than to share some recent thinks and reads with you. If you find them interesting (or if you don't), please let us know because we'd love to hear from you.

Things we think...

Crypto

Leverage is offered up to 125X for some trades. That's wild. The market cap for crypto is (or was recently) approximately 2X the market cap of the top 5 US banks. That's also wild. On the other hand, there is real value being created, lots of infrastructure being built, and new entrants being added at unprecedented rates. Even with a recent correction, the street calls your pessimism and buys the dip. Crypto data tells a story that is both bubbly and fundamentally valuable--the winners will disaggregate those two... or maybe it's just art?

The Great Migration

During the pandemic, people moved. Lots of people moved, in fact. They moved from cities to the exurbs. They moved from dense cities to less dense cities, and from old cool …