It is no secret that Andreessen Horowitz is bullish about crypto: Not only does the firm boast that it started to invest in the space a decade ago, but it also debuted a $4.5 billion web3 fund last week.
To understand a16z’s bullishness despite what others have described as a “crypto winter,” its 2022 State of Crypto Report is a good start. Per its disclaimers, the document is not directed to any investors or potential investors — yada, yada, yada. But it does read like an argument for crypto, DeFi, NFTs and all things web3.
The problem, in my view, is that the report’s authors, all of whom are part of a16z’s team, are overstating the current opportunity for crypto. By doing so, they are making it sound bigger than it is — and it may take years to get to that point.
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That the report takes an optimistic view of crypto is understandable. After all, if you are about to deploy billions in funding into a market, and you are not even alone, the TAM needs to be …
