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This is a return to business fundamentals; you no longer get to burn money and not deliver value. Cheap money has been a plague on tech. Even bucket shop crypt

This is a return to business fundamentals; you no longer get to burn money and not deliver value. Cheap money has been a plague on tech. Even bucket shop crypto shitheads like Parcl were getting 10's of millions of dollars. The party is officially over for charlatans like them.

tyingq 4y ago
The party was over in 2008 too, yet here we are.
- missedthecue 4y ago
  It comes in cycles. I don't think anyone's saying that valuations are going to be low until the heat death of the universe.
- ThrowawayR2 4y ago
  The 2008 recession lasted 18 months. On the other hand, the 2000 dot com bust technically resulted in only an 8 month recession but impacted tech hiring & spending for several years. Yeah, "here we are" but we may have to get through a very rough patch for a couple of years before getting to the next run up.
- this_user 4y ago
  In 2008 monetary and fiscal policy was not constrained by high inflation. Not it is. Anything that depends on inflows of cheap new capital will suffer. That concerns unprofitable companies as well as assets that generate no cash flows like anything crypto.
  - deeptote 4y ago
    Crypto is a fucking scam and I will die on this hill.
    - version_five 4y ago
      Yes, it's a scam. I don't see a downturn making people more wise about this though. Crypto shills have a plausible reason for a decline in value, and otherwise it's not like anything is happening to get the scammed (often just the greedy) to increase their sophistication so they can understand it's a scam. This is one of the rare times I'd say it, but I think legislation is needed. Crypto is a so-far-legal outlet for various financial schemes (ponzi, pump-and-dump, securities fraud, etc) that all are covered under existing laws. We just need to extend the law to these new instruments so people can't legally con others just by saying "blockchain"
    - iancmceachern 4y ago
      I'll be there with you. It doesn't add value to the world. If you go mine some gold, silver, coal, he'll, even dirt. It all has an intrinsic value for what it can be used for. Even dirt can be used to grow crops or fill in the sea. Crypto is worthless because it doesn't DO anything.
      - iancmceachern 4y ago
        Those down voting please list here what practical uses crypto currently has for the average human
        dash2 4y ago
        Bitcoin provides a “fiat” currency which doesn’t depend on any single actor controlling the supply. That could prevent inflation while being easier to exchange than gold.
        iancmceachern 4y ago
        Thank you, I appreciate it. I understand the vision, but argue it hasn't lived up to it. Anyone can walk into dozens of places in my city to buy, sell, exchange gold. There are many reputable online services for this as well. In reality it's really very easy to exchange. It's also way easier to deal with gold coins, etc Tham the whole crypto exchange/wallet/physical backup thing. People always mention theft, anyone who has any amount of gold should have it insured as part of their home/renter insurance, or can store it professionally with the same insurance guarantees. There isn't really a problem that needs solving here. It's hard to think about it protecting from inflation while it's so volatile. 5-10% inflation seems small when the market fluctuates +/- 25% regularly. I think crypto will end up going down in history as one of those Enron, Theranos, Segway, DIA automated baggage system, Lularoe things in 10 years. If it were this amazing world changing idea we'd all already be using it. Think about Facebook, Google, Netflix, these all became daily parts of most of our lives within a year or two. We've had crypto for a while now and I argue that the average person doesn't use it much, interact with it much, other than an investment vehicle. I think the crypto industry needs to take a hard look on the value prop they originally made, if they're meeting it, and what value, if any, they're providing instead. Does crypto work without continued investment? Does it add value and hold water on its own or does it rely on a steady stream of new investors putting more money in? Does it create value?

tyingq 4y ago

The party was over in 2008 too, yet here we are.

missedthecue 4y ago
It comes in cycles. I don't think anyone's saying that valuations are going to be low until the heat death of the universe.
ThrowawayR2 4y ago
The 2008 recession lasted 18 months. On the other hand, the 2000 dot com bust technically resulted in only an 8 month recession but impacted tech hiring & spending for several years. Yeah, "here we are" but we may have to get through a very rough patch for a couple of years before getting to the next run up.
this_user 4y ago
In 2008 monetary and fiscal policy was not constrained by high inflation. Not it is. Anything that depends on inflows of cheap new capital will suffer. That concerns unprofitable companies as well as assets that generate no cash flows like anything crypto.
- deeptote 4y ago
  Crypto is a fucking scam and I will die on this hill.
  - version_five 4y ago
    Yes, it's a scam. I don't see a downturn making people more wise about this though. Crypto shills have a plausible reason for a decline in value, and otherwise it's not like anything is happening to get the scammed (often just the greedy) to increase their sophistication so they can understand it's a scam. This is one of the rare times I'd say it, but I think legislation is needed. Crypto is a so-far-legal outlet for various financial schemes (ponzi, pump-and-dump, securities fraud, etc) that all are covered under existing laws. We just need to extend the law to these new instruments so people can't legally con others just by saying "blockchain"
  - iancmceachern 4y ago
    I'll be there with you. It doesn't add value to the world. If you go mine some gold, silver, coal, he'll, even dirt. It all has an intrinsic value for what it can be used for. Even dirt can be used to grow crops or fill in the sea. Crypto is worthless because it doesn't DO anything.
    - iancmceachern 4y ago
      Those down voting please list here what practical uses crypto currently has for the average human
      - dash2 4y ago
        Bitcoin provides a “fiat” currency which doesn’t depend on any single actor controlling the supply. That could prevent inflation while being easier to exchange than gold.
        iancmceachern 4y ago
        Thank you, I appreciate it. I understand the vision, but argue it hasn't lived up to it. Anyone can walk into dozens of places in my city to buy, sell, exchange gold. There are many reputable online services for this as well. In reality it's really very easy to exchange. It's also way easier to deal with gold coins, etc Tham the whole crypto exchange/wallet/physical backup thing. People always mention theft, anyone who has any amount of gold should have it insured as part of their home/renter insurance, or can store it professionally with the same insurance guarantees. There isn't really a problem that needs solving here. It's hard to think about it protecting from inflation while it's so volatile. 5-10% inflation seems small when the market fluctuates +/- 25% regularly. I think crypto will end up going down in history as one of those Enron, Theranos, Segway, DIA automated baggage system, Lularoe things in 10 years. If it were this amazing world changing idea we'd all already be using it. Think about Facebook, Google, Netflix, these all became daily parts of most of our lives within a year or two. We've had crypto for a while now and I argue that the average person doesn't use it much, interact with it much, other than an investment vehicle. I think the crypto industry needs to take a hard look on the value prop they originally made, if they're meeting it, and what value, if any, they're providing instead. Does crypto work without continued investment? Does it add value and hold water on its own or does it rely on a steady stream of new investors putting more money in? Does it create value?