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I think you underestimate how attractive “get rich quick” schemes are, especially to new generations that didn’t experience the fad yet.
by 3a2d29 4y ago
I think you underestimate how attractive “get rich quick” schemes are, especially to new generations that didn’t experience the fad yet.
- gonzo41 4y agoInstitutional investors are starting to get burned. I think it's over. But yes I agree on your broader point. Money for no work is always attractive.
- EGreg 4y agoIsn't that what VCs have been doing all the way through Web2? Now it's just democratized. But at least Web2 led to tech that served a lot of people, until it got commoditized. Crypto doesn't really have great applications yet. (With a few exceptions.) I seem to remember Softbank propping up companies like WeWork... and spectacularly losing money. Even this year they lost a lot. Uber and many others were basically money-losing unit economics being propped up by ever larger infusions of money until the stocks were dumped on the eager public in an IPO. But at least the corporations serve people. https://www.wsj.com/articles/SB10000872396390443720204578004980476429190 https://www.wsj.com/articles/SB10000872396390443720204578004... How were Adam Neumann, Travis Kalanick and Elizabeth Holmes any better than these crypto bros? The online advertising industry is in a constant race to the bottom. Look at how much Facebook and Google dropped relative to, say, Apple and Verizon. Throughout all this, the open source community in Web1, Web2, Web3 has been building some amazing stuff, but people like to create business models to dump
- TheOtherHobbes 4y agoNeumann, Kalanick, and Holmes are the same kind of person as these crypto bros. People still seem to think they're an aberration. They're not. The entire modern economy is fundamentally scammy. Especially, but not exclusively, the financial industry. Crypto is just the stinky tip of an iceberg of fraud and predatory exploitation which goes all the way from top to bottom.
- gsibble 4y agoVery true. Business used to be about the honest exchange of value. Now almost everything is a scam. I've seen it with my own eyes over the last 30 years. It's horrible.
- csomar 4y agoInstitutional investors are ashes now (look at GBTC, trading 30% below BTC price). This is not the first time it happened in tech, market or history. Bubbles and euphoria are older than Crypto. Bitcoin will be back in a few years in a new bubble. Halving in 2 years...
- dmix 4y agoMarket corrections are often a good thing. It'd be good for crypto to realign with the actual value it provides so capital centers on things that actually provide value! That's the only way it will grow. Betting on investors risk tolerance for cryptos success is a losers game long-term. At least from a technologist perspective. From a finance perspective there's plenty of money to be made if you aren't left holding the cards.
- rwmj 4y ago> It'd be good for crypto to realign with the actual value it provides It earns nothing so that's near zero. (Not quite zero because apparently you can use it to buy drugs or avoid export controls)
- csomar 4y agoThe drug market is estimated at 2 Trillions. I don't know, though, about export controls. That being said, I think the level that crypto is being used for money laundering or drugs is really minimal.
- paulpauper 4y agoby that logic, beanie babies should have recovered due to gen-z , obviously it hasn't. Sure, get rich quick schemes will always exist, but the scheme changes.
- BlueTemplar 4y agoBeanie babies don't have a history of half a dozen of recoveries after similar events. To use your metaphor, Bitcoin and Ethereum are more in the [schemes] class, rather than two specific schemes. Now of course nothing is eternal, but years-shorting crypto is too much of a risk for me.
- deleted 4y ago[deleted]