I rarely write about cryptocurrencies. Why? Well, because I’ve always thought they were pretty dumb. They have not been accepted as any kind of medium of exchange, except by the most extreme fringes of society. Their benefits are dwarfed by their inconvenience. They were a fad. And their charts have gone from exhilarating to dead-on-arrival. Compare the moving averages on the left to those on the right. Jimmy’s face says it all.
For months, someone could ask you what the latest price Bitcoin was, you could have answered $9300, and you would have been close to the truth. It has sputtered into sleepwalking.
Just compare to the kind of Bitcoin dollar volume in late 2017 (approaching $10 billion a day) to more recent activity (about 5% of that).
Even over the past couple of months, the already tiny volume has been shrinking to almost nothing.
How many hundreds of startups sprang up in late 2017 and early 2018 based on crypto? I assume that, collectively, they are all worth about nothing.
What killed crypto? I think I can answer that with one word: Robinhood. Whatever latent urge young people had to gamble was now satisfied with a platform that was far more popular and easier to understand. Twenty-somethings and dying to make easy money, and after crypto flopped, they’ve turned their attention to buying the likes of Hertz and Hi-Crush Partners. It’s as simple as that.