Thoughts on a Cryptobubble
Over the last 6 months roughly, the fiat prices of Cryptoassets have skyrocketed so much that more and more people have taken notice and the word bubble almost certainly follows the word Bitcoin in general conversation. It should therefore be an interesting time to look at this alleged bubble and try to understand where we stand. Firstly, it is important to understand that there are generally three kind of crypto assets in my view: a) Pureplay currencies that aim to be a medium of exchange or a store of value b) Functional assets that aim to be the backbone of applications and provide the basis for new ways of transacting/jurisdiction/etc c) Projects that want to use blockchain technology to decentralize services or offer some other novel product In order to understand bubble dynamics, it is important to separate the view across these three asset types, so let's address each in turn: a) Cryptocurrencies The main cryptocurrency is obviously Bitcoin....