The weird thing about crypto is that it can become a $20T asset class without it ever truly affecting the "real" world, as long as the money stays circulating within the crypto ecosystem.
Crypto marketcap topped $3T this run. It was likely much higher given that this $3T figure comes from CoinGecko and it doesn't track NFTs and unlisted tokens.
Yet the real world impact of this market crashing wasn't really as big as it would have been if a "real" $3T market was to drop by 2/3rd.
I suspect that in the absenece of real world growth and quickly depleting real world assets, more and more businesses will pile into web3/meta/crypto. In the metaverse, you can theoretically have infinite growth as long as that money stays within the metaverse ecosystem.
This does have real world consequences for all those small players who were suckered into buying cryptocurrencies at the peak by the likes of Saylor, Thiel and Musk at the peak. Many lost their savings and many more will.
Re the market caps, these are a fantasy propped up by unaudited exchanges currencies like tether. So it’s unsurprising all that perceived wealth melts into air - it never existed.
Interesting that you think web3/meta/crypto are tied together and have a future when nobody wants to use them. They were simply vehicles for speculation in a very large asset bubble, now that the bubble has started to pop nobody wants these speculative assets but we haven’t seen capitulation in markets yet nor the end of fed rate hikes, so the pain will continue.
Re infinite growth and business interest in these three areas, I see no evidence of that.
This might be true, but it's not that interesting imo. It's not a closed ecosystem people cash out of crypto to interact with the real world and buy their lambos. When there are major shocks in the real world - war & inflation this time - the facade disappears.
Cashing out is actively discouraged by the dominant "HODL" culture. Sure, people do cash out a lot. But its a fraction of the paper wealth circulating through the crypto ecosystem.
Crypto marketcap topped $3T this run. It was likely much higher given that this $3T figure comes from CoinGecko and it doesn't track NFTs and unlisted tokens.
Yet the real world impact of this market crashing wasn't really as big as it would have been if a "real" $3T market was to drop by 2/3rd.
I suspect that in the absenece of real world growth and quickly depleting real world assets, more and more businesses will pile into web3/meta/crypto. In the metaverse, you can theoretically have infinite growth as long as that money stays within the metaverse ecosystem.