- Crypto bubble:
Looking at the market value of cryptocurrencies, I really am not sure how much bigger this market can get. 5 trillion? 10 trillion? 100? Just to give you an example, Apple is worth nearly 3 trillion and the gold market values more than 12 trillion. What if we are already in a bubble? Do we really think every top 100 crypto project is worth several billions? IMO some cryptos might be worth their price, but many more are overpriced. And just can’t keep their value in the long run.
- Competitive nature of the market:
Many projects have the exact same use case. How many Dexs, stores of value, smart contract platforms, metaverse projects and etc, the world needs? Not this much! What about the rest? They will most likely die out. Just like the web. This market is “oversaturated” with cryptos.
- Practical profitability:
The third argument is that of actual profitability. For now, crypto companies only absorb capital. They don’t have much productivity. Most are literal start-ups with not much to show for their bloated market cap. This is not healthy, and it is not sustainable.