Reflecting on these decisions we made during this out-of-body experience with the taste of reality and shame. As exultation abandons us, we will emerge naked and sober. It’s not unrealistic to imagine that something similar happens again on a medium-term timeline. Crypto assets that outperformed Bitcoin over more than one bull/bear cycle are limited, most of them died entirely. Over time, the truly valuable crypto assets have shown to be incredibly scarce. But if people feel like they’re late to ETH, well then there’s AVAX, SOL, LUNA, ONE, NEAR, even ADA. Sure, Ethereum launched EIP1559 and they’re burning billions of dollars of ETH and it is increasing in scarcity as time passes. But there’s also 10,000 BAYC, MAYC, the kennel one, a bunch of cool ArtBlocks and CoolCats and Meebits and Hashmasks and, yeah, you get the picture. It is more prominent in a bull market - particularly towards the thrill-stages, when long-term value theses seem to retreat from the cognition of money managers that recently discovered themselves to be geniuses. There is ample dilution in the destinations for new dollars into crypto. More specifically, the infinity-billion dollars in risk-seeking capital are not entirely dedicated to buying the bags of crypto OGs. But the amount of things you can speculate on in crypto is ever increasing and theoretically interminable. Bitcoin and Ethereum themselves are scarce due to their hard-cap supply or deflationary tokenomic designs Crypto Punks are scarce because there is a finite and fixed supply and yes, there will probably only ever be 5,200 Crypto Dickbutts. Of course, this is a little intellectually dishonest. One billion dollars is not very much money anymore.Ĭrypto assets are not really scarce either.

People that joined crypto in summer 2021 are raising multi-billion dollar funds to explore “the metaverse” and to decentralize Uber. Risk-seeking capital is certainly not scarce. In reality, the only scarce resource in crypto is attention. Whether it’s enforcing digital scarcity through NFTs or the idea that “there’s 55m millionaires but only 21m bitcoins”.

People talk a lot about scarcity in crypto.

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