This isn’t a crash in historical terms. It’s simply repeating previous patterns. If we do have a true crash that wipes out most of the stored value and takes a decade to recover, like the dot-com crash, the effect on tech sector wealth in particular will be profound.
Right now, this is just the usual ebb and flow.
What I think is interesting about crypto is that it has the potential to go to zero because it has zero intrinsic value, unlike for example dot-com stocks, many of which had some value in the form of cashflow.
The two most likely scenarios that could cause a crash to zero, in my mind, are an unrecoverable vulnerability in a blockchain, or a brutal and global regulatory clampdown. The latter may not cause a crash to zero if some underground activity remains.
The probability of the globe simply falling out of love and discarding this new value store like a wilting tulip is unlikely in my opinion.
Right now, this is just the usual ebb and flow.
What I think is interesting about crypto is that it has the potential to go to zero because it has zero intrinsic value, unlike for example dot-com stocks, many of which had some value in the form of cashflow.
The two most likely scenarios that could cause a crash to zero, in my mind, are an unrecoverable vulnerability in a blockchain, or a brutal and global regulatory clampdown. The latter may not cause a crash to zero if some underground activity remains.
The probability of the globe simply falling out of love and discarding this new value store like a wilting tulip is unlikely in my opinion.