#127 – Sam Bankman-Fried on taking a high-risk approach to crypto and doing good

This podcast highlighted Sam Bankman-Fried as a positive example of someone ambitiously pursuing a high-impact career. To say the least, we no longer endorse that. See our statement for why.
The show’s host, Rob Wiblin, has also released some personal comments on this episode and the FTX bankruptcy on The 80,000 Hours Podcast feed, which you can listen to here.
If you were offered a 100% chance of $1 million to keep yourself, or a 10% chance of $15 million — it makes total sense to play it safe. You’d be devastated if you lost, and barely happier if you won.
But if you were offered a 100% chance of donating $1 billion, or a 10% chance of donating $15 billion, you should just go with whatever has the highest expected value — that is, probability multiplied by the goodness of the outcome — and so swing for the fences.
This is the totally rational but rarely seen high-risk approach to philanthropy championed by today’s guest, Sam Bankman-Fried. Sam founded the cryptocurrency trading platform FTX, which has grown his wealth from around $1 million to $20,000 million.
Added 30 November 2022: What I meant to refer to as totally rational in the above paragraph is thinking about the ‘expected value’ of one’s actions, not maximizing expected dollar returns as if you were entirely ‘risk-neutral’. See clarifications on what I (Rob Wiblin) think about risk-aversion here.
Despite that, Sam still drives a Corolla and sleeps on a beanbag, because the only reason he started FTX was to make money to give it away. In 2020, when he was 5% as rich as he is now, he was nonetheless the second biggest individual donor to Joe Biden’s general election campaign.

















