Posted by Tyler Cowen on Wednesday, January 5, 2022 Under: Technical Analysis
The future of cryptocurrency could depend on whether people focus on the artist, the label or the venue.
So the question is this: When people patronize crypto institutions, will they attach significance to the “innovator” or to the “intermediary”? Or, to continue the analogy with the music industry, the artist or the venue.
Significant parts of the crypto world would be relatively centralized. Those mainstream brokers would enjoy economies of scale, due to their reputations and ability to exploit network effects. They probably would offer lower-risk, well-established products.
I don’t know if people are up to all this work (or is it fun?). But in my view this is the best-case scenario — and the most technologically ambitious. Interestingly, crypto’s radical ability to disintermediate, if extended to its logical conclusion, could bring about a radical equalization of power that would lower the prices and values of the currently well-established crypto assets, companies and platforms.
To contact the author of this story:
In : Technical Analysis
Tags: how crypto could be like the music industry