John Pfeffer ( Twitter | Medium) is an entrepreneur and investor. In the 2000s, he was a London-based partner at private equity firm Kohlberg Kravis Roberts, and in the 1990s, he was Chairman of the Executive Board of leading French IT company Groupe Allium S.A. Before that, he advised on turnarounds while with McKinsey in Europe and Latin America.
Memo to Self
In 2017 John wrote a "memo to self" documenting his thoughts on Cryptoassets. You can read the summary in his Medium post.
Or your can download the full article here: An Investor's Take on Cryptoassets
In November 2019, John joined Nic Carter with Castle Island Ventures on his Podcast "On The Brink with Castle Island" to discuss reflections on the paper. You can listen here. If you buy and hold cryptocurrencies I recommend you read the paper and listen to this podcast.
The Inconvenient Truth about Crypto Currencies
After 2017, the crypto winter hit for two years. Many people lost money and faith in crypto. Fast forward to 2021 and crypto is in another bull market and participants are discussing John's article again. Raoul Pal recently posted an article summarizing his thoughts about crypto and refuting John's position. You can read Raoul's article here: The Inconvenient Truth about Crypto Currencies.
In summary, Pfeffer dismisses Metcalfe’s Law, calling it a “fallacious assumption”. Pal thinks it’s ALL about Metcalfe’s Law and that ALL cryptocurrencies or tokens fit within this framework and their network is their value. Pal uses data from the stock to flow model and user adoption on the Bitcoin and Ethereum networks to explain price variation.