“We are prone to epidemics of fallacies (scientism, universalism, academism, psychosociologism, stateworshipism), but not epidemics of wisdom, as nature filters out those with bad immune system” - Taleb
The crypto downturn in 2018 mirrors the broader slump in demand and valuations that follow the initial hype of inflated expectations and irrational exuberance in the lifecycle of an emerging technology. After a frothy 2017 that saw record amounts of capital being raised through ICOs at dizzying valuations, to the constant refrain of “Bitcoin is going mainstream
”, reality started biting when investors figured out there was little on-ground activity to justify these sky-high valuations. Rather than rewarding projects that are focused on bringing their products to market and drive adoption, investors are seemingly pouring more wealth into new projects and clones of existing projects, a-dime-a-dozen
of which seem to popping up every second. This is further going to lead to the fragmentation of already scarce developer pools, where well-funded but mostly distinctly run-of-the-mill projects are trying to lure developer talent by offering short-term incentives, at the expense of the long-term interests of both the ecosystem and developers.