So you can be bullish on crypto’s future without being bullish on current crypto prices. For a simple analogy, Spotify and YouTube have greatly expanded music’s reach, but overall the price of recorded music has fallen, and many performers earn much less than did their peers in the LP era. Or consider the agriculture sector, defined broadly: It has done very well over the last few centuries, but food prices have fallen rather than risen, due to higher output and greater competition.
One conclusion here is that to know where crypto is headed, sociology is as important as economics. Crypto will continue to be surprising because people see it not just as a way to make money, but as a way to make meaning of their lives.
This article was provided by Bloomberg News.