The Cryptocurrency Revolution and Financial Capital

Primitive monies
The monetary ideals
The purchasing power of the U.S. dollar has fallen nearly 90% since 1959
The bell- and S-curves of adoption, in blue and yellow respectively
Bitcoin’s “bubbles”
Technological revolutions and their bubbles
Blockchain use cases
  • The market’s cyclical nature requires strategic entries and exits; dollar cost averaging or buy-and-hold strategies are far from ideal.
  • The open-source nature of most blockchain networks ensures a frantic pace of innovation which in turn necessitates active oversight. Good ideas might traverse multiple vehicles before coming to fruition, much like internet search went from Altavista to Yahoo to Google and social media from Livejournal to MySpace to Facebook.
  • Crypto trades 24/7 and moves much faster than traditional markets. The smaller capitalization and illiquid nature of many assets result in whiplash volatility across the board.
  • The industry’s infrastructure is still in the early stages and difficult to navigate for those without advanced technical abilities. Misplacement or theft of cryptographic private keys is common and can result in devastating, irreversible losses.
  • Proper investment data is difficult to find (or nonexistent); scammers and charlatans abound and are becoming increasingly sophisticated. In many cases a legitimate project might succeed in building a useful network, but still not be a good investment due to poor token design or misaligned incentive structures.

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