[spaceman_2020]

Agreed about the venture capital for innovators part, but that has a danger of eventually the tail wagging the dog. Speculative investments enable VCs to fund other speculative investments until the entire chain is only focused on funding speculative products because that's where you get the meatiest exits

Again, see crypto as a prime example - because, at one point, you could command a valuation that was simply not tethered (heh) to reality, you had all these now-dead L1 chains raising $200M+ at $3-5B valuations.

This also leads to a situation where you only end up funding digital plays because the metrics there can be anything. You had these crypto companies raise based on "growth" when that growth was simply coins produced out of thin air and wallets created by the millions with a script.

You can't do that if you're building actual physical products