Why and how to invest in crypto? w/ Dan Tapiero (Founder & CEO @ 10T)

This episode of The Ledger Podcast features a discussion on the macro environment and the role of Web3 within it. Mo is joined by Dan Tapiero, Founder and Managing Partner of 10T Holdings and a veteran macro trader, and Ian Rogers, Ledger’s Chief Experience Officer. They offer a macro perspective on the current state and future of Web3.

Watch the full video below or read into the key topics discussed in the Podcast ahead:

Key Highlights:

The Macro Investor Mindset and Entrepreneurial Macro Plays

Dan Tapiero, a macro investor who began his career at Tiger Management, defines the role as betting on “structural changes in the world” and major macro/geopolitical trends, comparable to studying history to form a unique, clearly expressible thesis.

His career includes launching three macro-driven businesses:

1. Agcoa (2006): Based on a bullish agriculture view, this became the largest private US farmland REIT, later sold to Bill Gates.
2. GBI (2008/2009): Founded due to concerns about a “banking collapse,” it sells and stores physical gold and other precious metals in vaults “outside of the banking system,” becoming the third largest non-bank gold vault. GBI introduced him to Bitcoin in 2014.
3. 10T Holdings (2019/2020): A mid to late-stage growth equity fund focused exclusively on companies within the Digital Asset Ecosystem (DAE).

The Crypto Epiphany: Bitcoin as an Invention

Tapiero initially dismissed Bitcoin in 2014, admitting he didn’t focus on it. After the 2018-2019 crypto collapse, he realized an 85–90% sell-off often precedes a massive move up or failure. He then spent six months intensely researching, needing the complex technology “explained in English.” 

Key texts, including The Bitcoin Standard, The Internet of Money Volume Two, and Inventing Bitcoin, solidified his conviction. 

He now views Bitcoin as an invention on par with the combustion engine or electricity, solving the “Byzantine Generals Problem” (distributed trust) in an eight-page white paper. He deems crypto the greatest global macro trade slash investment of all time.

Investment Philosophy: HODL and Security

Tapiero emphasized that he does not think that is the best way to build wealth in this space through trading, calling it the most difficult space to trade of any market they’ve ever seen. Instead, he advised:

“I really think holding an asset in the space whether it’s Bitcoin or Ethereum, or whether it’s Ledger over a five to seven year period is going to net you the best return”.

• Patience and Emotion: He stressed that sitting on one’s hands and being patient is like a super power in a way and people don’t understand this. 
• Cold Storage: He insisted that dollar cost averaging and having assets in cold storage holding it on a Ledger signer is extremely important once value moves beyond a few hundred dollars (and of course, millions), you must have it held on a Ledger.

He views Bitcoin and Ethereum as the core assets of the ecosystem due to their network effect and history. 

10T Holdings, Yuga Labs, and the Ledger Investment Rationale

10T Holdings was founded on the premise of a 30x appreciation in the Digital Asset Ecosystem (DAE) valuation, targeting a growth from $300 billion to $10 trillion in 10 years (“10 T in 10 years was is sort of our mantra”). Ledger is their largest investment.

• Dan Tapiero, viewing NFTs macro-economically, invested $20 million in Yuga Labs (Bored Ape Yacht Club creators), believing Bored Ape could be the equivalent of Mickey Mouse in 1922 for a new, metaverse-comfortable generation under 25 spending eight hours a day online. Yuga Labs, despite being a year old, raised at a $4 billion valuation and generates high-margin, hundreds of millions in revenue.
• The investment in Ledger is based on the immense, “out of thin air” value in Web3. Tapiero argues that once an asset, like a Bored Ape NFT, exceeds $400,000-$500,000, it must put it on a Ledger. He sees Ledger as owning the vaults in cyberspace and being the most leveraged and as cleanly and directly as leveraged to that growth in the DAE.

Global Scope and Regulatory Landscape

Tapiero called crypto the first global macro bet of all time, noting the U.S. is not leading technological and financial innovation, with 90% of total world cryptocurrency volume originating outside the country, citing Binance and Deribit as examples.

He praised positive regulatory moves (e.g., Janet Yellen) but criticized China’s Bitcoin mining ban as a policy blunder driven by fear. He highlighted other nations (Singapore, Switzerland, Puerto Rico, Portugal) establishing positive frameworks, seeing crypto as an innovation that can raise living standards and create enormous jobs. 

A significant generational gap exists, with those under 25 readily embracing digital assets.

Risks and the Future

When asked about what keeps him up at night, Tapiero acknowledged risks like “a massive hack” or the volatility scaring people away. However, he maintains that the “risk reward” and the probability of catastrophic failure are low. He concluded by emphasizing that the DAE is still in its infancy, noting that only “two to three percent of the world have crypto accounts or crypto wallets,” which is comparable to the internet adoption in “1997”. This asymmetry makes it a high-probability bet that “this is the future”.

“It’s our duty as leaders of companies in the space to try to do our best, to try to educate and inform people to have a safer journey.” – Dan Tapiero

Reading List

Learn more about these topics mentioned in the episode, or explore our library of articles on Crypto, Security, and Regulation on Ledger Academy

• Bitcoin
• Ethereum
• Self-Custody
• Apecoin