I was wrong about Ethereum

Ethereum has had major issues since day one, which is why I don’t have any money in it anymore. (in at 10, out at 380 for those of you who think I’m just hating). Anyone who is surprised that it’s tanking after all these huge ICO’s doesn’t understand economics. Unfortunately, businesses can’t hire, rent office space, or pay for servers in Ether (yet), so all of that value would have had to come out of the crypto market to pay for actual stuff. You might even argue that the selloff is a good thing, because the ICO companies are actually starting to cash in and buy real stuff. (hopefully more talent and hardware and fewer Ferraris and jets)

In the long run, constituents (entrepreneurs, miners, investors etc.) shouldn’t look at individual projects (Bitcoin, Ethereum etc.) This moment is like the internet in 1995 — or even 1990 — except people know about the internet pre 1995 so everyone is trying to get in, hence the bubble. The media hype is not helping with the irrationality.

The tech is here to stay, and there will be myriad useful, stable, and profitable crypto-businesses next few years, and plenty of billionaires yet to be minted.

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