Do you believe in magic? The magic of innovation and technology? This week, we delve into the divided opinions surrounding startups, cryptocurrency, digital events, and more.

Editorial

This week brings a significant divide, akin to the parting of the seas, perhaps fitting for the Passover weekend. On one side are the believers—those who have faith in startups, Bitcoin as a robust energy storage and investment asset, remote digital gatherings, Medium as a viable platform, NFTs, and Microsoft’s faith in blockchain technology as a means of establishing trust without the need for proof. Among the believers are prominent figures such as Geoff Ralston from Y Combinator, Nick Grossman of Union Square Ventures, and Ev Williams of Medium.

Conversely, the non-believers present a formidable list as well. John Thornhill from the Financial Times critiques Sam Altman for his faith in automation and a future devoid of work. Casey Newton from The Verge criticizes Medium after consulting with fourteen departing employees, while Mark Zuckerberg seeks regulation from Washington, perhaps signaling a loss of confidence in his platform. Lauren Goode at Wired critiques Slack for allowing unfettered messaging between all users.

Progress is rarely linear. Whenever pioneering individuals and teams strive to transcend the ordinary and forge something new, they inevitably face mockery and scorn from skeptics. Initially, the detractors may seem rational while the innovators appear deluded. However, as Steve Jobs once noted, it is often the "crazy ones" who reshape history; the critics merely doubt the possibility.

Originally, I intended to highlight Geoff Ralston's insights on Y Combinator’s scaling strategy as the main feature this week, but upon reflection, I realized that would align me with the skeptics.

My initial concept for the cover image was as follows:

That was a close call.

Y Combinator has been a historical force since its inception. While it’s true that managing 300 startups with minimal pitching time is tough for both the startups and investors, these 300 ventures welcomed the opportunity and financial support. A select few among them are bound to achieve remarkable success.

Regarding Medium, Ev Williams is pivoting the platform once again. His candid letter to employees acknowledges past challenges and expresses his commitment to repositioning the service as a writer-focused platform, rather than an editorial entity. This demonstrates commendable leadership qualities: honesty, bravery, and decisiveness.

Nick Grossman elaborates on how Iceland’s energy, utilized for Bitcoin mining, effectively functions as a battery—converting energy into a valuable asset. This perspective challenges the narrative that Bitcoin contributes to climate change.

And what about NFTs and AI? Are they mere fantasies? Perhaps, but likely not. The emergence of digital artifacts as valuable assets and the potential for automation to render many jobs obsolete seems increasingly unavoidable. This week, we celebrate the visionaries while also acknowledging their critics. The choice is yours, dear reader.

To quote Theodore Roosevelt, often referenced by TechCrunch founder Michael Arrington, I’ll conclude this editorial:

# The Believers

Scaling YC — blog.ycombinator.com

A frequent query I encounter is: “Why has Y Combinator increased its batch size?” For each biannual batch, we receive thousands of applications online. Our goal has always been to fund as many exceptional founders as possible, convinced that within the influx of applications lie countless startups with extraordinary potential. Expanding the batch size not only allows us to accept more companies, but it also enhances the overall value of the Y Combinator network. A larger batch means more connections, more learning opportunities, and more friendships for the founders.

However, we’ve learned a crucial lesson about scaling: growing too quickly can be detrimental. During my time at Yahoo! Mail, I witnessed firsthand the challenges of rapid scaling, leading to unforgettable outages.

Consequently, over the past sixteen years, we have intentionally and thoughtfully expanded our batches. Our inaugural batch included eight companies, and we didn’t exceed one hundred until our twentieth batch. It took another four years before we funded two hundred companies in a single batch. Scaling from eight to two hundred was challenging, but we managed it by prioritizing essential factors.

Bitcoin as Battery — www.nickgrossman.xyz

Initially, this concept puzzled me. However, it refers to Iceland’s abundant, low-cost renewable geothermal energy. Rather than building power lines across the Atlantic, they convert electricity into aluminum, thereby transforming stranded renewable energy into value.

In essence, aluminum acts as a battery. Batteries shift the location and timing of energy usage. While live electricity must be consumed immediately, electricity transformed into aluminum can be utilized anywhere at any time.

Dams function as batteries; gasoline serves as a battery too. Aluminum’s economic transformation of energy into value, which can be repurposed, makes it a unique battery.

Returning to crypto mining: it converts electricity into value through crypto assets (BTC, ETH, etc.). Much like aluminum, these assets can be transferred and transformed, yet unlike aluminum, crypto assets are programmable and can be moved instantly over the internet.

The post Bitcoin as Battery first appeared on Union Square Ventures.

Hopin Acquires Two More Companies to Enhance Video Focus — TechCrunch

Hopin, a unicorn recognized for its online event-hosting platform, recently announced the acquisition of two additional companies, Jamm and Streamable, although specific details were not disclosed. CEO Johnny Boufarhat mentioned that both companies were “early-stage” startups.

Medium’s Editorial Team Update — Ev Williams

We have announced a leadership transition and a change in our editorial strategy at Medium. Below is the communication I shared with the team regarding these adjustments.

Medium Offers Buyouts to Editorial Staff — The New York Times

A key executive departs as the company shifts focus from its own publications to supporting the writers using its platform.

OpenSea’s $23 Million Funding Amid NFT Surge — Bitcoinist

As one of the pioneering NFT marketplaces, OpenSea has seen a significant rise in interest as collectors and traders embrace the booming NFT market. Launched nearly four years ago during the early days of NFTs, the platform now facilitates the sale of a variety of digital assets, including art and gaming items.