This week Christoffer Hernæs, former CDO in Sbanken, write critically about cryptocurrencies
and that the steep fall is closely linked to the mechanisms that have driven the vigorous growth - faith, hope, and greed.
He concludes that:
The decentralized nature of the crypto markets was predicted as the salvation from the institutions’ control. But there are many indications that complete decentralization without centralized regulation is the Achilles’ heel of the crypto markets rather than its salvation.
However, Richard Paulsens’ view is not as balanced:
It can also be cool to decorate private digital rooms or offices for hangouts, maybe show off an NFT image. If someone likes it, they can buy it from you with a click.
In the same way, as people walk home with art under their arms when they’ve been at your dinner parties? 😆
In my opinion, cryptocurrencies are comparable to venture capital betting on new up-and-coming companies working on new technology: Some of them might be revolutionary, and some of them will, in time, be worth nothing. The main difference for crypto is a lack of regulation at the moment, and that everyone can invest, causing a lot of gamification, Ponzi Schemes, and scams.