Loading ...But the big elephant in the room is that crypto is a closed loop. Its only source of “revenue” is speculation on coins. To the extent the value of coins can be modeled in ways that are similar to equity (and some can be), that future revenue is only a function of desire to speculate on coins. And then when coin values fall, and desire to speculate goes down (because that’s what happens in a bear market), then the “fundamentals” fall as well, and down the spiral goes. There’s no obvious circuit breaker or curb to stem the decline.
This isn’t to say all the coins are going to zero. It’s doubtful that the desire to speculate on crypto’s future will be expunged entirely, in part because the promise of decentralized finance (or a decentralized internet more broadly) is too tantalizing. But until there’s some kind of service delivered that’s the equivalent of how the mortgage market helped people get in homes, then the future will be more spirals such as this one.