A while back I became interested in bitcoin only investment funds. Full disclosure, I’m not a bitcoin whale or a rich guy, so my interest was mostly just curiosity and to learn about new bitcoin startups. I naturally discovered Ego Death Capital, since both Lyn Alden and Jeff Booth are partners in this venture fund. Each of them have written books that have taught me so much about money, the current financial system, and bitcoin. I signed up to receive their emails.
What About That Name-Ego Death?
I remembered the term ego death from my college Intro To Psych class, but I had forgotten what it means.
I found these explanations on wikipedia:
In death and rebirth mythology, ego death is a phase of self-surrender and transition, as described later by Joseph Campbell in his research on the mythology of the Hero's Journey. It is a recurrent theme in world mythology and is also used as a metaphor in some strands of contemporary western thinking.
Ego death and the related term "ego loss" have been defined in the context of mysticism by the religious studies scholar Daniel Merkur as "an imageless experience in which there is no sense of personal identity. It is the experience that remains possible in a state of extremely deep trance when the ego-functions of reality-testing, sense-perception, memory, reason, fantasy and self-representation are repressed [...] Muslim Sufis call it fana ('annihilation'), and medieval Jewish kabbalists termed it 'the kiss of death'
Carter Phipps equates enlightenment and ego death, which he defines as "the renunciation, rejection and, ultimately, the death of the need to hold on to a separate, self-centered existence".
Why was this investment fund named Ego Death Capital? This is how it is explained on the company’s website:
What many fear and resist as an end, we recognize as a beginning. With potential for a new system to thrive, to bring abundance, opportunity and accessibility.
For this to happen, it will require a phase of "self-surrender and transition.” First an awakening. Then resistance to a false sense of loss. Then dissolution and deconstruction. Then exploration. And finally, enlightenment. This is referred to as ego death.
So Why Was I Here?
I can’t help trying to orange pill people. My failures are frequent, but once in a while I feel like I make a difference in opening someone’s eyes. Although I am retired from the practice of law, I still do some property management for clients I have known for decades. In one case, a client I worked with passed away after having accumulated significant wealth. I still manage some of his properties for his children, who are now in their 30s. They are looking to diversify out of real estate and are beginning to invest in venture funds. I have tried to orange pill them in the past. It’s not that they are hostile to bitcoin. In fact, some of them have bought and sold bitcoin in the past, seeing it as just another asset. This is frustrating for me, as you might imagine.
A few weeks ago I received an email from Ego Death, inviting me to an event in New York City. I read through the agenda and knew I wanted to go. I also thought this would be a good opportunity to steer my clients into a bitcoin only venture fund. Maybe these heavy hitters could take over the orange pilling from here. Unfortunately, my former client’s kids weren’t available for the presentation, but they asked me to go and collect information. So that’s what I did.
After accepting the invitation, I was sent a bar code to be used to enter the offices, along with a link to the building rules of conduct. The event was co-sponsored by Ego Death Capital and Timechain. The event would be held at One Vanderbilt.
I don’t spend much time in New York City anymore, so I had no idea what One Vanderbilt was, although I assumed it was an office building. I read the invitation. It said
Dress Code: business casual
I panicked. I know most of you can’t relate to this, but I’m a mostly retired lawyer. I only dress in three outfits: 1) A suit, for those two or three times a year when I have to go to court or otherwise pretend I’m still a lawyer, 2) my winter outfit, which is sweat pants and sweat shirt, and 3) my summer garb, which is tee shirt and shorts. I have winter and summer crocs for my feet (don’t judge me).
I talked to my wife, who is also my fashion consultant. She reminded me that I still had a pair of dark, almost khaki pants. Neither of us was sure they would still fit. It had been a while, and this holiday I wasn’t exactly watching my diet. Luckily they still fit. She then advised that I wear one of my old sweaters, and some casual brown shoes. Apparently the crocs were out.
Having cleared that hurdle, I headed out on my adventure. After a long train ride, involving a number of transfers, I finally arrived at One Vanderbilt. It had been a while since I had been in a city office tower. Probably the last one was the World Trade Center. I had been there many times, including once or twice in the months before September 11th.
I walked up to the massive information desk, which, together with modern high tech turnstiles, created a barrier from the rows of elevators behind it.
I pulled out my trusty GrapheneOS Pixel, because I care about privacy, and scanned the bar code from the email invitation (protonmail, of course), as directed by the polite young woman behind the counter. Then she asked me my name and also asked me to produce a government issued photo identification. I should have said, “What? I’m Siggy as far as you’re concerned!” But instead, I dutifully handed over my driver’s license. Then she told me she was taking my photo. I bit my tongue and smiled for the camera.
I was then directed to a bank of turnstiles, and was told to scan my bar code again, in order to have my elevator car assigned. This all seemed completely crazy to me. Perhaps I have just been out of the working world too long? I don’t know.
So, I did what I was told, the turnstile opened, and the led screen on the other side showed me my elevator car. I found it among the 30 or so other cars. When I entered there were no buttons to press. The doors just closed and I was instantly whisked up to the 64th floor. One Vanderbilt has 73 floors. The elevator doors opened into a lobby with a small table with name tags. A woman asked my name and gave me my name tag. Then I walked through glass doors into the office. The first thing I noticed was the incredible view. Floor to ceiling windows looked out over Manhattan. One window had a view of the Empire State Building. Around the corner, the Chrysler Building. In short, the space was magnificent. It seemed like the set for the HBO show Succession. There were chairs set up for about 100 people in front of a large wall screen. People were milling about, drinking coffee or San Pellegrino, and eating quiche bites or pastries. I spotted Lyn Alden, Jeff Booth, and Preston Pysh among the group, chatting with the guests. I walked over to get a cup of coffee. The hefty white ceramic mug I took from a table had the embossed Stone Ridge logo and the firm’s motto:
“Focus. Be Humble. Be Kind.”
When I read “be humble” I thought of Matt Odell’s “stay humble and stack sats” mantra. I liked the mug and the slogan, though as I looked around the office the word humble wasn’t the first word to come to mind. This place was probably among the most luxurious, expensive office spaces in the world. It looked like a great place to work. If you were lucky enough to get a job here, you knew you had made it. I walked over to the windows to look down (down!) on the Chrysler building. I didn’t get too close to the window. I have a fear of heights that has gotten worse over the years. When I was a kid my parents would take me to “the city” for special occasions. People who lived in the other boroughs of New York called Manhattan the city. I loved the tall buildings, especially the Chrysler Building and the Empire State Building, which was the tallest building in the world at the time. This was before the World Trade Center had been completed.
Speaking of The World Trade Center, this was the first time I had been in a tall office tower since 9/11. That event almost a quarter century ago really shook me up. I had been in the WTC a few times in the months prior to that day. Fortunately I lost no friends or loved ones in the attack, but a few people I had met over the years had died in those towers. I was nervous about flying in a plane for a few years afterwards. I also was nervous about living or working in a tall building. I thought of this too while looking out over the city.
I went back and got another cup of coffee, and spoke to a few of my fellow attendees. One was a private equity manager whose firm mainly invests in private rocket technology. He seemed to have a basic understanding of bitcoin, but no specific interest in investing in “the asset.” He was here for general information and to keep up with new trends. Another guy was from the energy industry. He was aware of the emerging use of bitcoin mining with power plants, but didn’t seem overly enthusiastic. He told me he was invited by one of his colleagues. Another guy worked for a commercial real estate firm. He was very enthusiastic about bitcoin, and was hoping to gradually liquidity his company’s real estate and invest in bitcoin and bitcoin only projects.
Ross Stevens
Soon it was time to sit down for the presentation. First up, Preston Pysh interviewed Ross Stevens, founder and CEO of Stone Ridge Asset Management, and clearly the ruler of this domain. You could sense it from everyone’s body language. I had never seen him before, but I can see why everyone holds him in high esteem. He’s intelligent and articulate, and he doesn’t hide his excitement about bitcoin and its potential to change the world. Adam Smith is his hero. He recommended that everyone read Wealth Of Nations, and then revealed that he had a first edition of the book “upstairs”, which meant the 65th floor offices of Stone Ridge. That stirred my interest, since I’m a (much less wealthy) book collector myself. Unfortunately he disappeared after the interview, so there was no chance to check it out.
To get a more in depth take on Ross Stevens and Stone Ridge, see this post.
Lyn Alden
Lyn Alden was only interviewed by Preston for about 20 minutes, but she was typically articulate, intelligent and accessible in discussing her book, Broken Money. I was happily surprised to see, by a show of hands, that around two thirds of the audience had read the book.
Preston Pysh
Preston did an analysis of Michael Saylor’s three minute pitch to Microsoft, which included a viewing of the pitch itself. The presentation explained how bitcoin as a treasury asset can benefit any enterprise. I’m sick of hearing about Michael Saylor, so I went to the bathroom. On the way to the bathroom I passed the rows of tables that I think serve as the workspace for the Wolf Incubator.
Alex Mann
Alex Mann is a partner in Timechain, a firm that “provides the capital, network and experience to best in class bitcoin only companies looking to scale aggressively.” He discussed portfolio companies Debifi, a decentralized bitcoin lending app, and Relai, a European non custodial bitcoin exchange.
Nico Lechuga
Nico Lechuga is a founding partner of Ego Death. He discussed the firm’s investment in Fedi.
Jeff Booth
I’m familiar with Jeff Booth from his book, The Price Of Tomorrow, and I was happy to see by a show of hands that most of the audience had read it. During his talk I saw a little different side of Jeff. From the book, I knew he had been a successful entrepreneur long before embracing bitcoin. I was struck by what a smooth, persuasive, polished businessman he was in this environment. I’m sure he is an asset to these venture firms both for his intellect and his rain making abilities.
Jeff was the final speaker. The day ended with a delicious buffet lunch (I mostly ate some of the really good moroccan salmon kebabs) and the opportunity to talk to the presenters and guests in a relaxed setting.
Final Thoughts
As I briefly touched on earlier, I was forced to surrender my privacy to a great extent to even attend this event. I should point out that I took steps to limit that surrender, which I won’t go into here. Regardless, anyone who chooses to work in this environment must also accept these privacy intrusions, as well as potential investors and vendors. I think privacy should be fundamentally entwined with bitcoin, so I do have to recognize this significant compromise.
Despite this, I can’t help feeling optimistic about the bitcoin ecosystem after attending this event. There was a palpable excitement in the air. I could tell that many of my fellow attendees were just starting to head down the rabbit hole. The difference, of course, is that I couldn’t really describe them as plebs. These were wealthy, successful business people ready to put their capital to work. I recognize my own biases here. I like to think of bitcoin as being for the little guy, the disadvantaged, so I’m always a little suspicious of ostentatious displays of wealth. Still, this is the environment the rich are comfortable with.
At one point I noticed a hard cover copy of Alex Svetsky’s The Bushido Of Bitcoin on a work station. I am currently reading this book. I am concerned by the involvement of the legacy finance system in bitcoin, but I have to remind myself that bitcoin is for everyone. Still, this Svetsky quote, which I jotted down when I first read it, did come to mind:
What a failure it would ultimately be for Bitcoin to win the economic game, only for those who hold all the bitcoin to become like the very parasites they deposed.
