Chris Dixon, managing partner at venture capital firm a16z, recently addressed the evolving landscape of cryptocurrency, asserting that finance has always served as the initial phase of crypto”s journey rather than its ultimate destination. In a post on X, he highlighted that criticisms suggesting non-financial applications of crypto, such as the concepts of “read, write, own,” are misaligned with the current developmental stage of the industry.
Dixon pointed out that the inception of blockchain technology was about introducing novel functionalities rather than merely creating a new product category. He explained that blockchain networks facilitate coordination among individuals and capital on an expansive internet scale, embedding ownership directly within systems. This capability is particularly suited to financial activities, which rely on shared regulations, transparent settlements, and trust-minimized coordination—elements that blockchains can support more effectively than many early internet technologies.
Many decentralized finance (DeFi) platforms and applications leverage this open infrastructure and programmable ownership model, making finance an ideal space to validate whether blockchain technology can operate effectively at scale. Dixon noted that this perspective has significantly influenced a16z”s investment strategy, with many of their investments concentrated in financial services, including well-known entities like Coinbase, Maker, Compound, and Uniswap.
Additionally, Dixon has consistently advocated for the idea that blockchain technology has the potential to transform financial infrastructure into a public utility, enabling the internet to manage monetary transactions natively. He also mentioned that a16z”s investment funds are typically structured to last over a decade, emphasizing that the development of new industries often unfolds at a gradual pace, with initial stages appearing slow and uncertain.
Dixon further elaborated that for cryptocurrencies and blockchain technologies to expand beyond the financial realm, foundational infrastructures such as payments and DeFi must first mature. Historical patterns from early internet development showcase that basic connectivity and networking protocols were prerequisites to the emergence of social media and streaming platforms. Similarly, widespread adoption of cryptocurrency is likely to necessitate hundreds of millions of users engaging with financial tools before new economic and cultural paradigms can flourish.
While progress is being made, Dixon acknowledged that issues such as crypto-related scams and regulatory pressures have diminished confidence in tokens, complicating the creation of genuine communities of owners. Market skepticism during downturns has also stifled activity, limiting experimentation predominantly to financial applications.
In his analysis, Dixon underscored the critical role of policy clarity in restoring trust in crypto markets. He characterized the evolution of cryptocurrency as a long-term endeavor, where substantial advancements can only occur following extensive foundational work, akin to the lengthy research phases required for breakthroughs in artificial intelligence and the years of technical evolution preceding the commercialization of the internet.
