A reader remarks in reaction to the quote concerning the fall of the crypto market worth:
But there was never that much real money, was there? I never understood crypto except with my marketing spidey-sense that said there’s no “there” there. An artist can claim their original art is worth millions, but unless someone pays them actual millions, is it really? I realize my opinions/arguments/reasonings are convoluted, but so is crypto, and while I’m certain that some people got very rich on it, the rest are stuck with the equivalent of a monetary timeshare.
All right, all right, I’ll see myself out.
No, it was all about potential, and to an even greater extent than “market cap” of a public company, the liquidation or conversion of a crypto’s tokens to another currency will result in a fall in the value. Humanity on the other side of these trades may understand just what’s wrong and demand a greater discount, or it may see a great deal of conversions going on and figure something is going on – and in order to take the perceived greater risk, a larger discount, i.e., more favorable conversion rate, will be necessary.
Right up until the tokens become worthless and the primary servers catch fire, fall over, and sink into the swamp.
I think the reader’s spidey-sense is right on, though: There’s no “there” there.
