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Is crypto a speculative bubble?

Is crypto a speculative bubble?

Cryptocurrency & Blockchain

The vast majority of “cryptocurrencies” are either Layer 1 blockchains; (think “Operating Systems”) with a native token that one uses to pay for each action on that blockchain (these tokens are Good). Or a dApp (decentralized application) built on one or more blockchains. For which the builder of that dApp added their own token (these tokens are Bad). The vast majority of dApps’ tokens look a lot like securities, and will be irrelevant in a few years’ time (lack of interest and increasing regulation). I expect we will end up with 8-10 primary public blockchains; (ie: a public operating system powering the next iteration of the internet) and their associated native tokens will continue to grow as the backbone of a decentralized computing future. 

The speculation and excessiveness of the last 6 years (starting with ICO’s in 2017); was due to each dApp launching their own token pitched as the means to pay for use of each dApp (enriching developers & promoters).

Instead, the dApps should have been using the native token; (ETH, SOL, AVAX, etc) of the blockchain upon which they build their dApp as the means to pay for usage of the dApp. 

1636 Tulip Bubble : GameStop, Crypto & Social Media

In conclusion, builders of dApps in the near-future will use native stablecoins. Or the blockchain’s native token as payment for services; so the business model goes from promotional hype machine to creating value that users will pay for. And lastly, that means far fewer speculative tokens become created. In addition more concentration on building applications that generate value to users vs. building an application; that can be pumped & dumped via unscrupulous promoters. 

The good news is the era of speculative tokens is coming to a close; building the future of finance on public blockchains is here.

Cryptocurrency & Blockchain

Winklevii Twins, Cameron Winklevoss & Tyler Winklevoss; on Bitcoin’s Future & Gemini Exchange

Is crypto a speculative bubble?