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Why cryptocoins are rising so quickly when they are actually not creating any value? Or do they create value?
It’s the new form of gambling.
edit: in reply to rhizome below: yeah, I bought drugs, money, goods, etc... But I also lost money when the US Gov messed with BTC-e [1]... I hope that Biden doesn't get too stupid with his regulations.
(Hacker News didn't allow me to reply to a reply to my own comment: https://i.imgur.com/rd8qH08.png)
With that said, there’s quite a lot going for Ethereum and defi as a sector. Major tech players like Google are funding many web3 startups. Facebook is fully embracing the “metaverse,” whatever the f** that is.
Tesla is trading at some ridiculous multiple of earnings for the same reasons. Yes, there’s likely much future value in Tesla and web3. But the rapid recent growth is mostly indicative of the fed money machine going brrr.
We’re in a hyperinflationary period. Loans are extremely inexpensive, cash is cheap. I suspect the majority of influx in crypto is due to an abundance of fiat. With that said, there’s quite a lot going for Ethereum and defi as a sector. Major tech players like Google are funding many web3 startups. Facebook is fully embracing the “metaverse,” whatever the f** that is. Tesla is trading at some ridiculous multiple of e…
Zimbabwe had hyperinflation. Zimbabwe had a $100 trillion dollar bill:
https://www.dallasfed.org/assets/documents/institute/annual/...
If we had 20% inflation per year for the next decade in the US that would be high inflation but wouldn't be hyperinflation. We are nowhere near that.
I wonder if the crypto bubble creates a "wealth effect" that makes people feel richer, spend money, and drive inflation.
I see it as the future of the web. There's a lot of energy coming around the concept of Decentralized Apps. or Web 3.0, today we have web 2.0 with large centralized websites ran by huge tech monopolies. Regardless of your political affiliation, you probably dislike them. Though the exact reason you hate this is probably different.
Web 3.0 offers us a way out... and crypto is one of the critical underlying infrastrcuture components. A lot of people see things this way, and are trying to get in early on it. Chances are the markets will crash before the majority of people understand what web 3.0 is. But while the market is down, a lot of cool stuff is going to be built, and when more people start to discover it again, the market will shoot back up. This cycle happens every time we make progress. Of course, the markets are pretty amateurish right now so we also tend to overshoot it, leading to huge bull markets and big crashes.
https://en.wikipedia.org/wiki/Extraordinary_Popular_Delusion...
