Buy the Line, not the Dot

Analysis of the conversation between Jackson Jacobs and Stephen Cole

In today’s world, there are so many people trying to sell dots to others. A Youtuber with a silly thumbnail is urgently trying to convince people that they have to buy a new cryptocurrency. A group of founders presenting a meticulously rehearsed pitch to investors knowing that the professionalism will mask deficiencies in their overall product/mission. A person being convinced by their friends to go out partying for a night when they know that that person has to work/study. In a conversation between Saber’s Jackson Jacobs and Angel Investor/Venture Partner Stephen Cole, the concept of “Not buying the Dot, but buying the Line” is evident.

The beginning of the conversation surrounds bitcoin. Stephen goes on to affirm some of the positives of bitcoin. Positives such as fixed supply, ease of transport, decentralization, and being the first technological advancement that can truly compete with the dollar. The two men then discuss how the masses view BTC as a new concept. The masses view it as fundamentally weak in history and credibility, when consequently viewing the dollar as being an institution from the birth of this country. However, this is a bit of a facade. The dollar was taken off of the gold standard in 1971; 52 years ago. BTC originated 14 years ago in 2009. In the grand scheme of trade, currency, and stores of value, the dollar in its current form and BTC have both not been around that long. Given BTC’s strengths in the other aspects of currency value, Stephen explains how it is only a matter of time until people understand the concept better and notice the positives.

In addition to the fundamental elements of BTC, Stephen is attracted to the environment that BTC is in. It is a sleeper while still being a dominant presence. While bitcoin is lumped into the cryptocurrency sphere, Stephen does not view it in the same category as the rest of crypto.

“Bitcoin is rigid, resistant to change, no one can ever make more bitcoin. All of the other coins claim to be flexible, adaptable, can change, can add features”. - Stephen Cole

Bitcoin is being slept on because the other tokens in crypto have the same patterns as corporations. Investors want to invest in a business that is flexible and can develop. So when they look to invest in crypto, they apply that same pattern matching logic. Essentially being sold dots. The line that Stephen is buying is that BTC will be a currency society is built upon, not just an investment project. 

Stephen’s admiration for BTC can be translated to other forms of investing. The same “hidden in plain sight” pattern matching mentality is applied when he chooses what lines to put his time and money into. He has sat through hundreds of pitches and is not impressed by a well-rehearsed presentation or the crisp suits being worn in front of him.

“I’m probably more apt to seek out the introverted person hanging out in the corner who’s maybe like in a t-shirt and shorts, you know is humble and unaware, and less inclined to engage in the signaling everyone else is spending a lot of brain cycles on.”  - Stephen Cole

The AZ Tech scene is another line that Stephen is buying. A core component of the blossoming tech scene in Arizona that Stephen praised is JamPad. As Stephen elicits,

“JamPad is probably the highest quality founder group that I have encountered; including Silicon Valley. In terms of a talent/member basis, extremely optimistic.” - Stephen Cole

When Jackson and Stephen talked more about what the AZ Tech Scene needs to do differently, a recurring theme popped up. “There is a lot of capital out here, but a lot of it is kind of agricultural money and like real estate money. I hope to see a lot more funds emerging that really understand start-ups and understand that high-growth/high-impact business building is fundamentally different from other forms of investing.” 

As the name of this town implies, Phoenix is rising from the ashes in the Tech World. The ecosystem is steaming. In the past, there have been dots that have gotten to a certain size, but those dots have not connected with the others to form a line. Stephen can see the direction that the line is developing into. Others can too. And Saber will be making it known.