I think of bitcoin and all the crypto products the same way I think of baseball cards. The underlying asset is worthless cardboard. Value is pure speculation. Sure you make real money speculating, trading cardboard for real cap gains, but it's cardboard at the end of the day.
Value can vanish in an instant. As old baseball card collectors die off, there's no new wave of young people willing to pay a cool million dollars for a rare card. And exactly that has happened to many crypto products.
Bitcoin has enjoyed the "first wave" effect. But the days of 5000x gains on a "cardboard" underlying asset are going to be harder to find. Bitcoin is not going to 5000x again from it's current price. New crypto products will not either with the flood of new coins and new product fatigue.
The fact I can personally recreate a bitcoin equivalent right now with the effort of a button click should be concerning. I can't duplicate gold with a button click. I can't duplicate a business with high profit margin. I can't duplicate real estate.
I think of bitcoin and all the crypto products the same way I think of baseball cards. The underlying asset is worthless cardboard. Value is pure speculation. Sure you make real money speculating, trading cardboard for real cap gains, but it's cardboard at the end of the day.
Value can vanish in an instant. As old baseball card collectors die off, there's no new wave of young people willing to pay a cool million dollars for a rare card. And exactly that has happened to many crypto products.
Bitcoin has enjoyed the "first wave" effect. But the days of 5000x gains on a "cardboard" underlying asset are going to be harder to find. Bitcoin is not going to 5000x again from it's current price. New crypto products will not either with the flood of new coins and new product fatigue.
The fact I can personally recreate a bitcoin equivalent right now with the effort of a button click should be concerning. I can't duplicate gold with a button click. I can't duplicate a business with high profit margin. I can't duplicate real estate.