Jump to content

The Crypto Question Conundrum


Recommended Posts

Crypto bubble bursting

What Is the Point of Cryptocurrency?
There is a question that has plagued crypto assets since they began trading. That question is, what do they solve for? It is fundamental to understand what the product does or has the potential to do in order to accurately assign any sort of valuation. I never have gotten a satisfactory answer and it would appear, neither has the market.


Initially it was thought crypto assets would become a currency. But a currency has to serve as a store of value and a store of value cannot have the volatility inherent in crypto assets. Bitcoin is down nearly 60% this year. Ethereum is down 70%.

Next, we were told crypto would serve as an inflation hedge. But as inflation began taking off and interest rates climbed, crypto assets lost value. So much for that theory. That brings me back to my original question, what does crypto solve for?

The Value of Tradable Assets 
We do know blockchain technology has value. We know its ability to act as a ledger is better than anything we had prior. We know the different blockchains support different activities and offer varying degrees of scalability. That has value.

What doesn’t have value is dogecoin or any of the other countless tulip-frenzy-like knockoffs created in the last few years. Crypto and/or blockchain’s greatest value to most people has arguably been as a tradable asset. Nevermind that broad ignorance surrounding what was being traded. When you live in a world where all assets are bid up, asking questions as to why prices are skyrocketing is trivial relative to getting in while you can. And that my friends is a recipe for a bubble.

Where Does Cryptocurrency Stand Today?
So here we are. June 2022. The bubble has burst. Reality has set in. Dogecoin, which once traded near $0.60 now hovers around a nickel. Many of the coins whose names spread through online forums faster than Covid have seen their market cap eviscerated. Most of those names will not be back nor should they.

Every bull market seems to end with an overhyped, overvalued, over indulgent, new paradigm preaching prophets promising passage to paradise. When the bubble bursts, those same people go back to where they came from and wait for the next bull market. At some point, they’ll remerge making lots of noise like market cicadas.

Don’t get me wrong, I do believe crypto has value. I do not think we will go back to a pre-crypto world. All I want and hope for is someone who can articulate in a simple way what the hell it is so I can try assigning a value to it.

 

Written by Dylan Ratigan and Josh Fabian

Jun 17, 2022 | Tastytrade

 

 

tastytrade and IG.png

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Imagine stepping into a world where every game you play is not just about entertainment, but about unlocking real rewards and experiences that resonate with you on a personal level. That's the magic of Game-Fi projects, where the boundaries between gaming and finance blur, creating an immersive universe where players are not just participants but pioneers of a new era. In the midst of this gaming revolution, there's a project that's been making waves for all the right reasons: NADA Protocol $NADA. Recently, I found myself diving deep into the realm of emerging Game-Fi projects, and NADA caught my eye like a hidden treasure waiting to be discovered. It's more than just another token; it's a symbol of possibility, offering gamers a glimpse into a future where their passion translates into tangible rewards. Let me take you on a journey through the world of NADA Protocol, where innovation meets excitement, and where every move you make could be the key to unlocking a world of endless possibilities. 1. Rewards Beyond Imagination: NADA Protocol isn't just another token; it's a ticket to a world where every move, every triumph, is rewarded. Imagine playing your favorite games and earning tokens simply for doing what you love. With NADA, that dream becomes a reality. 2. Trailblazing Roadmap: What sets NADA apart is its ambitious roadmap, charting a course towards a future where gaming and rewards intertwine seamlessly. With plans to integrate into future games, early adopters of the native token stand to reap massive rewards down the line. 3. Korean Innovation: Behind the scenes, NADA is powered by none other than NADA Digital Co., Ltd., a powerhouse in the Korean gaming industry. With a proven track record and global recognition, NADA Digital Co., Ltd. brings a level of expertise and reliability that sets NADA apart from the competition. 4. Global Validation: It's one thing to dream big, but NADA has the track record to back it up. With a presence in the global market and validation from players worldwide, NADA isn't just a promising project – it's a force to be reckoned with. 5. Exchange Expansion: The anticipation builds as NADA gears up for listing on top exchanges like Bitget. With increased accessibility and liquidity, NADA is poised to make waves in the Game-Fi space, captivating audiences and investors alike.  What are your thoughts, let's discuss? 
    • Hi There - Any update on this??? Or is it time to move my accounts to a platform that can provide DRIPs?
    • Hi There - Any update on this??? Or is it time to move my accounts to a platform that can provide DRIPs?  
×
×
  • Create New...
us