AI's Rise and Crypto's Resilience: Insights from VC Firm Partner

Chris Burniske, a former ARK Invest analyst and current partner at venture capital firm Placeholder, recently shared his bullish perspective on the future of crypto and AI investments in a Twitter thread.

Burniske drew a vivid comparison between investors chasing popular trends and mosquitoes attracted to light, urging investors to make informed decisions rather than blindly following the crowd:

Never ceases to amaze me how humans chasing hot balls of money eerily resemble mosquitoes drawn to the light. Don’t be a mosquito.

Burniske noted the current trend of investors gravitating towards AI, with some even prematurely declaring the demise of crypto. However, he argued that both sectors have the potential to thrive. He cautioned that even promising technology could become a poor investment if purchased at an inflated price.

Burniske suggested that investors would be better off exploring areas that are currently overlooked and undervalued rather than chasing after overvalued deals. He pointed out that during bearish phases, many reasons are put forth as to why the asset class won’t rise again, just as during bullish phases, many reasons are given for why the trend will continue indefinitely. He advised investors to remember that no trends continue forever in markets, except on very long time scales.

Burniske stated that his firm’s focus remains on blockchains as a mechanism to better distribute data, wealth, and power. He expressed interest in applications that have the potential to reach 10M-100M+ users at the venture stage and in accumulating key infrastructure in the public markets.

He also highlighted the potential overlap between blockchains, automation, and machine learning, predicting that at some point in the coming years, people will realize this en masse, and relevant blockchain systems will experience significant growth.

Burniske concluded his thread by reminding investors that they are responsible for their own decisions. He urged them not to be like mosquitoes drawn to light but to be the light themselves, making informed and thoughtful investment decisions.

Featured Image Credit: Photo / illustration by “WorldSpectrum” via Pixabay

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