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David Sachs was named White House AI and Crypto Czar by Donald Trump. Mr. Sachs was an early investor in Bitcoin and will become involved in regulating the cryptocurrency industry after Mr. Trump's nomination.
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President-elect Donald Trump has named David Sachs as White House AI and Crypto Czar. Who is David Sachs? What is his stance on Bitcoin and cryptocurrencies?
Who is David Sachs?
David Sachs is a South African-American entrepreneur and investor known for his influential role in the technology industry. He was born into a Jewish family in Cape Town, South Africa, immigrated to the United States at the age of five, and his family established roots in Tennessee.
Sacks grew up under the influence of his grandfather, who started a candy factory in the 1920s. Although he did not initially aspire to become an entrepreneur (he did not want to follow in his father's footsteps as an endocrinologist), his family's entrepreneurial legacy influenced his career path. I gave it.
He attended the University of Memphis and later pursued higher education at Stanford University, earning a bachelor's degree in economics in 1994. He then earned his J.D. from the University of Chicago Law School in 1998.
In 1999, Sachs joined PayPal as its first product leader and later became the company's chief operating officer. He played a key role in turning PayPal into a global leader in online payments.
After PayPal was acquired by eBay in late 2002, Sacks founded Yammer, a social networking platform for businesses, which was acquired by Microsoft.
I co-founded Craft Ventures in 2017. The venture capital firm has invested in a number of successful technology companies, including SpaceX, Uber, Airbnb, BitGo, and Reddit, to name a few. As of November 2023, Craft Ventures' assets under management increased to $3.3 billion.
Aside from his accomplishments at Craft Ventures, the Silicon Valley entrepreneur is also known for co-hosting the “All-In” podcast with other prominent venture capitalists. The podcast discusses a variety of topics related to technology, politics, and economics.
Elon Musk's best friend
David Sachs and Elon Musk share a close relationship rooted in their involvement in PayPal's early development. After leaving the company, the two became successful entrepreneurs and continued to collaborate on various ventures.
They are part of the so-called “PayPal Mafia,” a network of influential technology entrepreneurs who collaborated in the early 2000s and have since created successful technology companies.
The venture capitalist played a key role in Musk's acquisition of Twitter (now X). Sachs provided financing for the $44 billion deal and served as a trusted advisor during the ownership transition period, according to the NYT.
Sachs is also known for his political contributions, particularly his support for pro-Bitcoin politician and anti-CBDC Florida Governor Ron DeSantis.
trump supporter
Sachs has positioned himself as a strong supporter of Trump's return as president. His view is that President Trump's policies are better suited to address the challenges facing the country. By comparison, he feels the Biden administration has struggled to offer a convincing alternative.
The entrepreneur has been a vocal critic of the current administration's policies, especially on important issues such as the economy, foreign policy, and border security. He believes that under Donald Trump's leadership, America can return to prosperity, security, and stability.
On December 5, President Trump officially appointed Sachs as White House AI and Crypto Czar.
He is expected to guide the administration's policy on AI and cryptocurrencies, areas considered critical to U.S. competitiveness. The focus will be on creating a legal framework that provides clarity for the cryptocurrency industry.
President Trump said Sachs would protect free speech online and help create a regulatory framework for the cryptocurrency industry.
and bitcoin investors
Sachs has been a long-time supporter of crypto assets such as Bitcoin and Ethereum, and believes in the original vision behind PayPal to establish a “database of money” where transactions remain within a secure digital ecosystem. It is considered to be a materialization.
He has watched Bitcoin evolve from a niche asset to a more mainstream investment opportunity and has invested in the flagship crypto asset.
“I’ve been interested in Bitcoin since I first bought it in 2012. We realized in 2017 or 2018 that cryptocurrencies had graduated to becoming an institutional asset class. We published a paper saying we think it's actually going to be a consumer retail phenomenon,'' Sachs said in an interview with Anthony Pompliano.
“So we ended up investing in institutional custody through a company called BitGo, and we also invested in Multicoin, which is a crypto-focused hedge fund,” he added. “Fundamentally, we believe that as cryptocurrencies mature as an asset class, there will be a need for specialized fund managers.”
Sachs believes that the transformative part of Bitcoin is its potential to function as a non-fiat currency.
He believes that Bitcoin offers the potential for a financial system independent of government control, given the risks associated with government-controlled currencies, particularly when it comes to currency deterioration due to overprinting of money.
“When a government is in control, there is a huge risk of currency devaluation, especially when it has the world's reserve currency. There is a huge temptation to do something like that,” the venture capitalist said.
“What Bitcoin offers is a different kind of currency that is not backed by governments. It's backed by mathematics. It's backed by cryptography. You don't have to believe in governments. Only 21 million BTC. No. You just have to believe that Bitcoin is virtually uncrackable,” he said.
Sachs believes that Bitcoin has the strongest case among crypto assets, but also acknowledges other technological advancements that have emerged at the same time as Bitcoin, such as blockchain technology and decentralized finance. .
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