Here’s a question I think crypto avoids:
Can a project become extremely important without becoming a great investment?
I think the answer is yes.
A protocol can become deeply embedded in an ecosystem, process enormous amounts of activity and become difficult to replace — while the token itself captures surprisingly little of that economic value.
That’s because utility and value capture are not the same thing.
We often celebrate adoption as if it automatically settles the investment case.
It doesn’t.
The harder question is:
Where does the economic value created by adoption actually end up?
That question is uncomfortable because it forces us to separate a great technology from a great asset.
And I think that distinction will become much more important as crypto matures.
The next generation of investors may not ask which networks will win.
They may ask something much harder:
“If this network wins, who actually captures the value?”
That’s the question I want to keep asking.
#Crypto #Markets #Investing
Can a project become extremely important without becoming a great investment?
I think the answer is yes.
A protocol can become deeply embedded in an ecosystem, process enormous amounts of activity and become difficult to replace — while the token itself captures surprisingly little of that economic value.
That’s because utility and value capture are not the same thing.
We often celebrate adoption as if it automatically settles the investment case.
It doesn’t.
The harder question is:
Where does the economic value created by adoption actually end up?
That question is uncomfortable because it forces us to separate a great technology from a great asset.
And I think that distinction will become much more important as crypto matures.
The next generation of investors may not ask which networks will win.
They may ask something much harder:
“If this network wins, who actually captures the value?”
That’s the question I want to keep asking.
#Crypto #Markets #Investing