- Most crypto tokens lack real value, with speculation and greed overshadowing the blockchain’s true potential.
- Bitcoin struggles as a safe-haven asset, with gold and the US dollar preferred during economic uncertainty.
- Despite setbacks, blockchain could power a permissionless digital economy if developed with long-term vision.
The crypto space remains riddled with volatility and speculation. According to Robert Sasu, referring to the former Binance CEO’s tweet, over 99.99% of tokens are scams, leaving only a mere 0.01% with real value. Despite this, centralized exchanges (CEXs) continue listing memecoins purely for volume. Additionally, perpetual decentralized exchanges (perpDexs) suffer from bad debt while pushing centralization.
Instead of leveraging blockchain for its true purpose, the industry clings to ineffective narratives. However, blockchain technology holds immense potential. If properly utilized, it could underpin a new permissionless internet. This would drive sustainable growth, allowing real value to accrue over time. Slow, steady progress remains key before explosive adoption takes place.
Institutional Preferences and Bitcoin’s Position
Recent data from Bank of America reveals a stark contrast in investor sentiment. In times of economic turmoil, gold remains the dominant safe-haven asset. The survey indicates that 58% of fund managers favor gold in trade war scenarios. Conversely, Bitcoin lags behind, receiving only 3% preference.
The US dollar secures second place, attracting 15% of respondents. Long-term Treasury bonds hold 9%, while commodities and short-term Treasuries gain 7% and 4%, respectively. Equities perform the worst, with only 2% of investors favoring them. This underscores Bitcoin’s struggle to establish itself as a mainstream safe asset. While some view it as a digital store of value, traditional markets remain skeptical.
Crypto’s Lost Potential and the Role of Greed
Despite its promise, crypto has failed both retail and institutional investors. Ideally, it should serve as a hedge against inflation, tariffs, and economic instability, according to the Core MultiversX developer. However, greed-driven speculation has led to its commoditization. Crypto behaves more like a stock than a revolutionary financial system.
Excessive token creation, pump-and-dump schemes, and rampant speculation erode trust. Moreover, tariffs impacting crypto reveal its unintended correlation with traditional markets. This raises concerns about its independence and true function.
Nevertheless, industry builders remain undeterred. Real value in crypto grows slowly and steadily before achieving mass adoption. Blockchain’s true potential lies in becoming the foundational layer of the internet. If developed correctly, it could introduce a permissionless digital economy. The market may be flawed, but visionaries continue building for the future.
